Big-business hooker

The Financial Crisis Inquiry Commission released its 576 page report yesterday on the causes of the great recession. They interviewed over 700 people with first-hand knowledge of how the crisis came to be.

“Avoidable” concluded the Commission. Our regulators failed us. The lack of appropriate regulatory oversight failed us. Excessive Wall Street risk-taking failed us. Big business corporate mismanagement failed us. From the Clinton administration until 2008 we were on track to the inevitable collapse of our economy.

One non-cause of the crisis according to the Commission—the government’s efforts to promote homeownership. Congratulations to the Commission for not blaming the victims.

Immediately upon the release of the Commission’s report (and probably before reading it) the U.S. Chamber of Commerce went on the attack. It called the report a “missed opportunity to produce an objective, non-partisan look at how to strengthen our financial regulatory system”.

Now there’s an oxymoron. The U.S. Chamber advocating objectivity, non-partisanship and a strong financial regulatory system.

The reality is that the U.S. Chamber has been paid very well to oppose financial regulations for a long time. Since the financial crisis it has fronted for the same financial industry that drove our economy over the cliff. It opposed the much-needed Wall Street reform legislation that passed last year and is doing everything it is getting paid to do to water down the new regulations.

If I had about $50 million and was willing to deal with the principle-less U.S. Chamber, I could get them to support the Commission’s report. It’s just business to them. No different from a high-priced hooker telling the customer, “Show me the money and I’ll do anything you want.”