Driving the Point Home

Would it not be ironic (in a strictly literary sense) if the SEC were to lose its case against Goldman-Sachs? Its indictment of the financial giant helped to cement the government’s position that Wall Street is corrupt and in desperate need of draconian reform. When the president signs the new financial regulation act, the government will assume sweeping and open-ended powers over America’s financial industry.

This is as big a deal as health care reform was. But, unlike the health care bill, it did not arouse Tea Party ire except in a strictly peripheral sense. It fit neatly into the evil ‘fat cat’ narrative that is currently sweeping the country. The details of the SEC indictment fell well outside the understanding of most casual observers. Unlike universal health care that would affect every citizen on some level, Wall Street is still seen as being quite another planet where ‘obvious’ mischief is casually concocted. Only well-dressed Wall Street insiders ventured to express carefully worded reservations; along with Mayor Bloomberg, of course, who sees city coffers emptying by the hour.

If GS should be acquitted, the damage will already have been done: Our current incompetent and arguably corrupt Federal government will effectively control New York’s Wall Street top to bottom. … and chameleon Bloomberg will continue to wonder where the money went.

The saga of Richard Blumenthal of Connecticut brings us back down to earth. Overtly lying to constituents about one’s resume is disgraceful; getting caught at it is unpardonable. Whether these NYT revelations will hurt Blumenthal in November is still up for debate. My guess is yes (it will hurt). People are less likely to remember a health care grab or the torpedoing of Wall Street (both of which will have been seamlessly woven into the fabric of modern socialist America by then) than a Harvard swim team captain who wasn’t – especially if there is a privately propelled incentive (as there is certain to be) to drive the point home.