The lax regulation of Wall Street is a threat to our economy.
Wall Street has proven beyond a doubt that without proper regulations they can crash the economy. Very little is being done to prevent another situation where they can again blackmail the American citizens into paying trillions to save the economy.
Two major problems discussed in Dean Baker’s, "False Profits" are the failure of the Fed to control economic bubbles, like the housing bubble, and the rampant speculation by our banks which is backed by taxpayer's dollars.
The Fed is intended to regulate our economy to benefit all Americans. That means dealing with unemployment. However, most of the board members are bankers and it looks like their actions favor those banks over the 99% masses. The Fed operates with our economy at stake, in almost complete secrecy. It’s dealings should be made more transparent and they should have to meet with Congress on a regular basis.
We need to reestablish controls similar to those of the Glass-Steagall Act. Also, a Financial Transaction Tax needs to be established to reign in the rampant speculation that endangers our savings.
