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Richard Brodsky

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Occupy Wall Street Meets Doctor Doom

Posted: 03/30/2012 12:17 pm

In the strange politics of 2012, the strangest wrinkle may be the growing convergence between high-powered establishment financiers and Occupy Wall Street. Earlier this week there was a convocation of bankers, lawyers, academics and financial leaders in the august halls of a major Manhattan law firm. Its central purpose was to examine federal regulatory responses to the Great Financial Meltdown.

What emerged was a cri de coeur about the future of the American economy. Its central thesis was that the concentration of wealth and power in the hands of the top 1% (of banks) was a danger to the other 99% (of banks), to our economy, our liberty and our democratic values. I expected to hear this at Zuccotti Park. It was a genuine surprise to hear it on 5th Avenue.

The group that met was made up of very smart people, with a variety of social and political views. Among of string of piercing presentations, two stood out. First, Henry Kaufman, the storied "Dr. Doom" of years past, who made an international reputation predicting interest rate shifts and the economic realities behind them. He laid out how mega-banks:

  • Restrict capital from getting to small business

  • Encourage market manipulation and rapid shifts on interest rates by decreasing the number of market participants

  • Concentrate political power as well as wealth, and provoke government into massive and unworkable regulatory schemes


In the end, Kaufman described these banks as "public utilities" with government entwined in daily operations as the only regulator capable of controlling their excesses.

Next, Ira Millstein, the diffident gray-eminence of anti-trust law and corporate governance who has engineered reforms at places like General Motors and New York's MTA, subtly skewered Dodd-Frank and increasing federal regulation of banks. His skepticism comes not from the scripted anti-government perspective of the Tea Party and Mitt Romney, but because such regulation is doomed to fail. The answer: An anti-tust analysis of the mega-financial conglomerates.


Without ever saying so, both Kaufman and Millstein were calling for a reinstatement of Glass-Steagall, the New Deal restriction against financial conglomerates repealed by Bill Clinton. Repealing Glass-Steagall created mega conglomerates which include insurance, investment banking and related functions, and which decreased competition in the banking sector. Breaking up these mega conglomerates allows a market-based solution that restricts the power of the huge players who currently control our financial lives. Both were skeptical that it would ever happen.

Having spent considerable time around and about Occupy Wall Street, the ironies of the Kaufman's and Millstein's concerns struck me as considerable. While the social perspectives and life experiences could not be more divergent, their conclusions were precisely the same as OWS. The great danger to American prosperity, to American values, to average people is the result of the huge concentration of money and power that have been the "hallmark of the American economy" for over thirty years.

The convergence of these ideas is an enormously important phenomenon. Even as concentrated power increases, and as almost all Republicans and most Democrats enable it, the populace is becoming increasingly restless and counter-forces are bestirring themselves. It may be incongruous to think of Kaufman and Millstein drumming on the steps of Zuccotti Park, but drumming they are. The folks who are starting to hear the drumming are now the financial academic and legal elite of the business community.

 

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In the strange politics of 2012, the strangest wrinkle may be the growing convergence between high-powered establishment financiers and Occupy Wall Street. Earlier this week there was a convocation of...
In the strange politics of 2012, the strangest wrinkle may be the growing convergence between high-powered establishment financiers and Occupy Wall Street. Earlier this week there was a convocation of...
 
 
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01:34 AM on 03/31/2012
Now this is funny

Its central thesis was that the concentration of wealth and power in the hands of the top 1% (of banks) was a danger to the other 99% (of banks), to our economy, our liberty and our democratic values. I expected to hear this at Zuccotti Park. It was a genuine surprise to hear it on 5th Avenue.

Does this ever end? Well they say it's the most sincere form of flattery but now even the “Banksters” are joining the 99% Movement?

Y’all better hurry up and reserve your place at the May 1st General Strike (if not sooner) otherwise we might not be able to Guarantee you a spot at the OWS Protests!

These "Other" Banksters migh take them all.......
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12:32 AM on 03/31/2012
In my historical research that verified my empirical research findings about the ingredients of leadership I gradually became aware that the short stay of civilization has been fought between the forces for the common wealth and the values of economic and social justice and the forces of special interests that represent ownership, social and economic control, wealth and power.  Also, as nations declined, the special interests of ideological elites including religious organizations and dynasties arose in various forms to transform the membership and purposes..
   I found that there were only short extraordinary growth spurts when the common people had the upper hand and a fair shake to grow, develop and prevail.  Those periods did not recognize especially great leaders.  During the Neolithic Era those leaders of that extraordinary discovery and growth  period have been erased from human memory.  Yet, the Pharaohs and Emperors following who made lasting monuments to themselves are studied as great leaders.  Yet, they resided over stagnant, declining organizations (with some temporary exceptions).
   Now our nation's shift from action to the power of words has again cast a people operating for themselves and their nation to a people under the foot of power and rising oligarchy.  We have lost our confidence and competence to build and reconstruct and gained vision and inspiration of the glory of eternal life and other absolute truths..  We are no longer our brother's keeper but his indentured servant .
02:29 PM on 03/31/2012
Well said, Leader. These bankers are not alone in recognzing the danger to ALL of us in continuing down the current path. But they have the experience and the reputations to be listened to. Let's hope others on WS will listen. Or more importantly, that members of Congress will. The latter, I'm afraid is unlikely anytime soon.

Congress reminds me of the doctors of yore who bled patients to "cure" them. When the patient grew sicker after bleeding, they bled him again. Not surprisingly, he got worse. So the cure recommended was more bleeding. And then the patient died. But those physicians insisted that eventually the bleeding would have cured him, if only the patient hadn't stubbornly gone and died on them first.
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09:23 PM on 03/31/2012
    Brilliantly stated.  The doctors you describer decide upo0n the basis of their rather than the patient's best interests.
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09:25 PM on 03/31/2012
Brilliantly stated. The doctors you describe decide upon the basis of their onw interests rather than the patient's best interests.
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Cynthia Dudley
05:25 PM on 03/30/2012
Just because a large group of people are gathered in a park and holding drum circles, doesn't mean that they can't be right. Heck they are outside and not in a stuffy office, they were already right about one thing.
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02:54 PM on 03/30/2012
Richard Brodsky offers an insightful and thought provoking commentary about increasing awareness of the sources of our econmic distress and the bubbling rage that helps to fuel OWS.

There is no greater symbol of the corruption of our society and sytemmatic concentration of wealth and power at the expense of average citizens, taxpayers, employees, consumers, and the neediest of Americans than the lives and "service" of Bill and Hillary Clinton. They continue to shamlessly pander to a progressive base of support claiming to champion the middle class and to address the great needs of the world's impoverished and oppressed, while selling their influence to benefit profiteering corporations and receiving their share of the cut to become mega millionaires. They serve themselves.

Sure the Bushes, Phil Gramm and many other Republicans have gotten wealthy off of power. The Clintons claim, however, to represent a different agenda and value system, while they contribute to the very same outcomes. Bill Clinton led and signed the repeal of Glass-Steagall and within months of leaving office received millions and millions from grateful Wall Street cronies. What is a retroactive bribe called? kickback? "speaking and consulting fees"? Clinton has now collected over $75 million. And his wife wades every day in huge conflicts of interest that further enrich Clinton, Inc. Power gluttony and greed?

Among all the power elite who continue to concentrate wealth in personal fortunes, the Clintons stand out for particular scorn as the most sanctimonious and hypocritical.
02:32 PM on 03/31/2012
The sad thing is that for thirty years there has been so much wealth and power at the top and in our politics that no presidential candidate gets to the "finals" without first being pre-approved by a corporate and banking elite and party insiders.

Any non-approved candidate who gains too much popular support is systematically destroyed by party insiders and the corporate media, until by the time of the election, the American people go dutifully to the polls and vote for corporate candidate A or corporate candidate B.

Having said that, though, I'll take the corporate candidate who'll at least throw a bone or two to the masses instead of those who quite openly plan to destroy the middle class and the poor to enrich and empower ONLY the very wealthy.