When I think back to the crazy time of 2008 when it seemed as if suddenly the economic world was imploding, I do remember thinking that we should let the house of cards fall and rebuild the whole thing over. However seeing how Hank Paulson and Tim Geithner came together and worked over the Wall Street elite and then hammered away at congress while it was still under the Bush/Cheney administration watch; I don’t know if we could have actually let the Big Banks fail without a huge fight from Wall Street and the Bush/Cheney White House. Hank Paulson knew what he was doing and had all of his contacts on the phone at all times cooking up the details of the TARP bailout regardless of the why’s, the how’s and the who’s. I can’t remember where I read it, but letting our financial sector collapse organicaly would not have necessarily led us to the same outsome as 1929, because we had fail safes already in place for the average person such as the FDIC. I think that if we would have just let the banks take the loss, we would have been able to do so much more in terms of rewriting the ways that banks should operate, it might have gotten us back to a more transparent and honest way of doing financial transactions. But that, alas, is nether here nor there. Honestly I think that the grave problem left by Eric Holder’s lack of criminal porsecution is that it set an unhealthy precendent of unaccountability and non deterrence in the finance industry and that is dangerous for the future. We don’t have the mechanisms in place to really offset any future economic meltdowns. I know that we have Dodd-Frank, but that law and its regulations has been diluted as to not really afford us the economic security that we seriously need given that Wall Street has not gotten over its rapacious ways. Our financial sector is too powerful, too entrenched in the Washington D.C milieu and too large in proportion to the rest of our economy to be of postive benefit to us as a society. It does however help to look back and criticize, because it is only when you fully study and understand the complexities of an event historically that you can truly comprehend what to do in the future for the next time.
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