Other than their hatred for President Obama, there seems nothing more dear to the hearts of conservatives than deregulation and government austerity. Trouble is neither is working, and it appears we’re headed back to the dark days.
News this week that the giant bank, J. P. Morgan Chase, has lost $2 billion in a “portfolio hedging” strategy is another shattering blow to right-wing politicians and propagandists who believe regulation by the federal government has no place in America. Chase’s scheme involving the trading of derivatives is the same type of shenanigans that sent this country and the world spiralling into a recession four years ago.
Chase had skirted regulation and the law, Dodd-Frank or the so-called Volcker Rule, by successful lobbying of the Federal Reserve and U.S. Treasury, according to a story in the New York Times. The lobbying created a “loophole that a Mack truck could drive through,” Michigan’s Democratic Senator, Carl Levin, was quoted as saying.
Government austerity, another banner held high by the right, has failed in Europe and is failing here. In response, France has elected a leftist president, and beleaguered Greece is heading the same way.