Forum Post: Positive Ideas For Change On Wall Street and in Washington, D.C.

Three years ago Wall Street wrecked the United States economy by destroying twenty percent of the national net worth. Nobody was held accountable. Not a single person from a financial institution or bank was indicted or convicted (not including Bernie Madoff in this statement). Wall Street has iron control over U.S. economic policies. One party is a wholly owned subsidiary of Wall Street and the other party caters to Wall Street all too often. The system is completely unresponsive to the needs of the people. The average man/woman is driven further into despair and debt. Twenty-four million people cannot find full-time work. Fifty million people cannot see a doctor when they are sick. Forty-seven million need government help to feed themselves. Fifteen million families owe more on their mortgages than the value of their homes. Wall Street, through its many transactions and dealings, has created, maintained and enforced an economy that is extremely unequal in wealth distribution. How does Wall Street do this? Through the control and domination of the U.S. political system. In addition, the Federal Reserve, which prints U.S. money, gives billions of dollars to U.S. banks and foreign interests. All this while the average American continues to need help. With the $12.2 trillion Wall Street bailout, every U.S. citizen is on the hook for $83,235 – assuming we were each going to pay an equal share for financial debacle. Look further and you will find that large oil companies control most of the U.S. energy policy and the military-industrial complex controls much of the U.S. foreign policy. So what are the solutions to some of these problems?

1. Wall Street executives must be held accountable for their actions. There are laws on the books right now that if enforced would make Wall Street executives think twice before gambling with funds that could wreck the economy further. (The New York Times reported in 2011 that many banks paid out “record” fines equal to one month’s profit without having to admit responsibility for any wrongdoing. It is difficult to know what a “record” fine is since the banks were never find previously for the events three years ago.) The agencies currently tasked with regulating Wall Street are under funded and lack the personnel needed to more closely watch over Wall Street. More funding in this area will be needed.

2. A “bright line” must be drawn and maintained between Wall Street and the federal government. This means limited access and influence peddling by lobbyists when contacting political representatives and department/agency regulators. While such action may be considered a violation of a corporation’s rights as an “individual” – some legislation must be enacted into law that prevents Wall Street from corrupting the political system in its favor. At the same time, government will limit its own involvement in manipulating the economy. Our capitalist system demands a government that is efficient and effective but does not meddle in “command-control” economic policies. Companies and investors may take risks knowing that the greater the risk, the greater the reward. At the same time, companies and investors involved in ventures that fail should go bankrupt. Never again will the U.S. government prop up unsound ventures because they are supposedly “too big to fail”. In the future, these companies will have the usual opportunities to fully liquidate or go through the bankruptcy process to re-emerge in a new form.

3. The federal government will need to re-examine the operations of the Federal Reserve to determine if closer oversight is needed. There are representatives that have suggested the Federal Reserve be brought under complete management of the federal government. Whether or not this is an appropriate action will need further study. Certainly the Federal Reserve’s actions with respect to off balance sheet transactions and extension of trillions of dollars to foreign governments will need to be scrutinized.

4. Senate and House Representatives will need to have limited terms. Just as the President of the United States is limited to no more than two four-year terms, Senators and House Representatives will also be required to have limited terms. (Exactly what these terms should be can be determined at a later date.) In addition, Senators and House Representatives cannot vote to raise their own salaries. Also, Senator and House Representatives will be subject to similar programs as the people they represent. There will be no special programs for political representatives when it comes to health, insurance, investments, pensions, etc. Use of insider information for investment trading by political representatives or government employees will be strictly prohibited.

These suggestions are submitted to continue a dialogue for positive change on Wall Street and in Washington, D.C.