Misplaced Rage of Occupy Wall Street
I have written how I donít caucus with the Occupy Wall Street Crowd. They are a fraud.
The knee jerk reaction is that if I donít concur with Occupy Wall Street and their assault on capitalism, that I must be a greedy capitalist and think the bankers are great guys that should be left alone.
If you are a regular reader of this blog, you will find thatís not true. Banks werenít the root cause of the massive financial crisis we had, but they certainly were maidens to the disaster.
Banks responded to incentives that were put in place by regulators and government agencies like Fannie Mae and Freddie Mac.
Today, banks are being castigated for not lending to Main Street. But, you canít blame them. The Federal Reserve is creating a situation where banks can just surf the yield curve and make a lot of money. They donít need to work hard and take a larger risk to make a profit.
Whatís really clear to me is that Washington DC really doesnít know what to do about banks. Dodd-Frank is a miserable failure and already has raised the cost of doing business and hurt consumers. People in the CFTC and SEC are clueless to changes in the industry and what to do about them.Bankers have become one of Obamaís favorite whipping boys in public. Behind the scenes he enjoys cashing their checks.Occupy Wall Street is the right outrage, but itís in the wrong place. Itís not capitalism that is killing us. Itís the people that try to control capitalism for their own means that are killing us.