How to really reform the SEC

Dan Smolin asks a good question: Why should we assume that the SEC's Mary Schapiro will make a U-turn in 2009, given that Schapiro has spent her entire career inviting brokerages to "self-regulate" and doing everything in her power to keep consumers at bay when they are ripped off and kept in the dark by brokerages? The easy answer is that we shouldn't assume that Schapiro will all of a sudden go to bat for the consumers. After all, Schapiro "has been at the very center of a failed regulatory process for the past two decades." We know where her loyalties lie, just like we know that Tim Geithner will never turn hard against Wall Street to clean up the corruption (see here for more details on Geithner--and here). Truly, years of actions speak much more loudly than months of words for both Schapiro and Geithner. I am convinced that Obama doesn't have the horses he needs to clean up Wall Street corruption. It's a typical modern conundrum where you need a highly motivated powerful outsider to get the job down, but there simply aren't enough highly motivated powerful outsiders. If Mary Schapiro had even an iota of interest in protecting consumers, Smolin wouldn't be needing to advocate for the following changes he is now pushing--they would have been a reality years ago:

1. Abolish the mandatory arbitration system and give investors back their constitutional rights;

2. Abolish "self regulation" by FINRA, which is a sham. The brokerage industry should be regulated by a governmental authority with the power to do so effectively. The SEC would be the likely agency to do so, with the right leadership;

3. Require brokerage statements to:

(a) Disclose the risk of every portfolio, as measured by standard deviation; (b) Compare the returns of every portfolio to a portfolio indexed to benchmarks of comparable risk; and (c) Disclose the "cost equity" of the portfolio, which is the amount the investor must make to break even, after payment of commissions, fees and margin interest. Common sense, right? Why aren't these reforms a reality? Good question. And why is a terribly motivated person like Mary Schapiro still sitting there pretending to be a reformer?

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McClatchy calls out Cheney on his lies

Good for McClatchy, publishing an article detailing Dick Cheney's recent lies regarding torture conducted by the United States.

Former Vice President Dick Cheney's defense Thursday of the Bush administration's policies for interrogating suspected terrorists contained omissions, exaggerations and misstatements.

If Cheney really wants to claim that the U.S. mistreatment of prisoners produced information that "prevented the violent death of thousands, if not hundreds of thousands, of innocent people." OK, Cheney. If that really were true (it isn't) tell us what information was obtained and how it saved thousands of people. Just give us one example of how that information saved any lives at all. It's hard to believe that this clown was theVP of the United States. He could never gotten his way invading Iraq in the first place if all the media had been as diligent as McClatchy has been over the years. Note that the article doesn't limit itself to Cheney's speech, but reviews many of the lies and distortions of the Bush Administration.

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Who’s watching the Federal Reserve? Not the Inspector General of the Federal Reserve.

Who's watching the Federal Reserve? Not the Inspector General of the Federal Reserve. This video shows a May 5, 2009 hearing where Rep. Alan Grayson asks Elizabeth Coleman, the Federal Reserve Inspector General, about the trillions of dollars lent or spent by the Federal Reserve and where it went, and the trillions of off balance sheet obligations. As you can see, she is clueless and/or full of bullshit. So much for public accountability. It's time for a real investigation of the Federal Reserve.

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Jesse Ventura on torture

Jesse Ventura appeared on The View and spoke plain truth about torture, i.e., waterboarding is torture. If you can bear it, listen to Elisabeth Hasselbeck chattering away in support of torture (even though she claims that she is against torture). Ventura won't put up with Hasselbeck's inanity, and puts the blame squarely where it belongs, given that U.S. torture hasn't exactly been a recent revelation to anyone who gave a crap about it.

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Rumsfeld’s religious war

I'm truly disgusted to learn of newest evidence for the religious underpinnings for Donald Rumsfeld's (and George Bush's) thought process. GQ has revealed that Rumsfeld authored an entire series of Bible/war memos, "Top Secret Briefings," to get Bush fired up that he was on God's side in a Manichean struggle.

This mixing of Crusades-like messaging with war imagery, which until now has not been revealed, had become routine.

For those who say that religion is good, that is sometimes true. Many people have been inspired by religion to channel their natural empathy into acts of kindness. To those who say religion is dangerous, that is also sometimes true, as witnessed by America's religious war waged in Iraq. Thanks to the Bush Administration's application of religion, 100,000 people are dead, tens of thousands of Americans wounded, and millions of Iraqis who have lost their homes. I would say, as a general rule that we should always discourage violence in the name of religion. Religion is too often a potent mind-altering trip. Too often, it causes people to unplug their pre-frontal cortices, so that their base instincts, especially their xenophobia, rise's to the top. Religion is too often used to concoct needless imaginary lines between and among groups of people, resulting in growing distrust, which too often ripens into seething hate. Bottom line: Thanks to Rumsfeld's (and Bush's) embrace of what we now know (better than ever) to be religious violence, our "secular" government was able to conclude that their religious ends justified their military means, and that any lie, any torture, and any amount of collateral damage was justified. All of this in the name of God.

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