Thursday, January 20, 2011

On Crashes and Commissions

Every single time I think about Wall Street and the Crash of 2008, I think of the Pecora Commission and the recommendations that came as a result of the inquiry.  Our country benefited mightily from the reforms that came as a result of that investigation, and I believe that it was the advent of the Reagan Revolution that started us on the road to 2008.  And though we definitely needed to reform aspects of our economy as the 1970s came to a close, a broad push for massive deregulation seems not to have been the answer.

Now we are all waiting for the findings of the Financial Crisis Inquiry Commission, and I am not too confident that it will match the power and/or impact of the Pecora Commission.  I've started reading some of the reports, and they have been interesting.  But I know that the political climate is one that is not conducive to returning to sensible regulations, like those that afforded our nation the massive expansion and growth following WWII. 

The final report will be an interesting read I'm sure.

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