Friday, January 22, 2021
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Time for Strong New Wall Street Regulation

7
"I think the market is cleansing itself..." That remark was made recently on CNBC by an apologist for the shenanigans and illegal acts that brought us the financial debacle now unfolding - a spokesman for those who insist that the "free market" can "regulate itself.

The comment totally discounts the disruption in the lives of millions caused by the collapse of the economy, suffering brought about by the rampant greed and manipulation of markets in this latest financial collapse. I wonder...is the market cleansing itself of flash trades...dark pools...unrelenting short selling...problems with derivatives? Can we trust firms like Goldman Sachs to pledge that, never again, will they peddle junk to the rest of us, while their insiders bet that very junk will fail? I don't think so.

It's actually in the best long-term interest of the stock market and Wall Street to be re-regulated. As it stands now, the majority of Americans are rightly convinced that the stock market is rigged, a place where insiders have gamed the system so that they alone are sure to win. Elimination of the practices that brought down the whole economy is vital. Without re-regulation, we are destined to repeat the debacle just endured. The very people who cause the problem are never the ones who pay for it. The rest of us are.

So, as the White House begins the arduous job of selling reform of Wall Street against the headwind of ever-present Republican obstructionism, it might pay for all of us to learn a bit about the insider's gaming of the stock market? Let's look behind the curtain and reveal some of the actions of the greedy Wall Street Wizards of Oz....