Robert Reich: Let’s also stop hoping Wall Street will mend itself. What just happened at J.P. Morgan reveals how fragile and opaque the banking system continues to be.
Robert Reich: Respectful disagreement is virtuous in a democratic society, but so is appropriate indignation. Indignation signals to the public that social responsibilities have been breached, and thereby lends credence and authority to all those who are working toward them. Franklin D. Roosevelt had no hesitancy blaming the “economic royalists” – the rich bankers and executives who stood in the way of the New Deal.
Robert Reich: Today’s quiz: At a time when California’s Republican gubernatorial candidate Meg Whitman is losing ground to her Republican rival in the primary because of her ties to Wall Street…when Wall Street is political poison, why are politicians still so intent on doing its bidding?
Robert Reich: Blanche Lincoln wants to force the banks to put their derivatives into separate entities that aren’t subsidized by you and me. This is just common sense. Her move would also end the big banks’ monopoly over derivatives, thereby reducing their risk to the financial system. It would also cut dramatically into the big banks’ profits.
Robert Reich: Including all those who have entered the job market since the bottom fell out, the nation is about 11 million jobs short. The President ought to use his second honeymoon to get a jobs bill that will make a difference.
Executives and traders on the Street have become the single biggest sources of money for Democrats as well as Republicans. And with mid-term elections looming next year, you can bet every member of Congress has a glint in his or her eye directed at the Street.