This fourth branch is in the shadows and it is not controlled by the voters. Instead, it is controlled by money coming from special interest groups such as the National Rifle Association, the President’s “Organize For Action”, the Koch brothers, Sheldon Adelson, Citizens United, all labor union PACS and approximately 4,600 other political action committees.
In the case of PAC’s, they in theory represent a group of voters who are supporting the PAC. This creates a problem that: 1). Not every voter belongs to a PAC and 2) Not all PAC’s are created equal. The more money the PAC has, the more influence they have. Further, the more one contributes to a PAC, the more influence that person has over the PAC.
Making things worse, these organizations have control over the other three branches of our, tongue in cheek, government. Most of these PAC’S are controlled by a small group of individuals making the decisions. In addition to these Political Action Committees, our elected officials spend much of their time soliciting money from very wealthy individuals in the following industries: Wall Street, Banking, Entertainment, Energy, Home Building, Technology and others.
Politics is the only industry I am aware of that allows its employees to take a paid leave of absence from performing their duties to look for another job; their reelection. I am very pessimistic. If we do not end this corruption the country will continue in its slow decline.
Lately, more and more there is a discussion that banks are too big to fail in that it could cause a repeat of the financial crisis of 2008. On March 17, 2013 in the New York Times GRETCHEN MORGENSON wrote an article titled, JPMorgan’s Follies, for All to See wherein she discusses a trade executed by Chase bank that resulted in a loss close to $6-billion. She reports that we already know such banks are too big to fail and raises the question whether they are too big to manage.
On March 13, 2013 the New York Times reported
“Attorney General Eric H. Holder Jr. responded to a question at a Senate Judiciary Committee hearing last week about the failure to prosecute multinational banks for various transgressions by saying, “I am concerned that the size of some of these institutions becomes so large that it does become difficult for us to prosecute them when we are hit with indications that if we do prosecute – if we do bring a criminal charge – it will have a negative impact on the national economy, perhaps even the world economy.”
I can see accepting the premise that some of these banks may be too big to fail at the present time. However, I do not accept that the CEO’s, CFO’s and other senior officers are not too big to fire and stick in jail. There is plenty of talent in the world and markets are likely to cheer if this happened as opposed to panicking.
Let’s do it! If it is not done it means that politicians are also dirty.
This will not be as easy with the purchase of mortgage backed securities which have an average life of twelve years. An improving economy will result in interest rates rising and thus the value of mortgage backed securities decreasing. If they pull money out of the economy to hold inflation in check the Federal Reserve will incur significant losses that will need to be covered by the tax payer.
Don’t blame the Federal Reserve for this needless loss. Blame the Republicans in Congress for not shouldering their responsibility to stimulate the economy by making sound investments in infrastructure that would create jobs. Also blame Congress and the White House for not going after banks for retribution for causing our near depression. This retribution would save the tax payers billions of dollars. Goldman’s contributions to our politicians is paying off. More