Who's to blame?

Jim Jubak at MSN Money is kind of the people's wealth advisor and financial commentator, but lately he hasn't been touting investments as much as explaining the financial crisis in terms ordinary folks can understand. His latest column is worth reading because it points the finger directly at Congress and the big-money campaign contributions coming from AIG, CITI, etc. Of course, one column or even a book can't assess all of the blame. It was too much of grab the money and run for both bankers and Congress. Here's the top of his column.

The folks in power in Washington and on Wall Street want to pretend that the current global financial crisis -- you know, the one that reduced household net worth in the United States by $11.2 trillion in 2008, according to the Federal Reserve -- was an accident caused by some unfortunate confluence of greed and asleep-at-the-switch regulators.

What we're now living through, though, is the result of a conscious, planned looting of the world economy. Its roots stretch back decades. And it wouldn't have been possible without the contrivances of the bought-and-paid-for folks who sit in Congress.

We aren't going to get a real fix if we shrug our shoulders and say it's too complicated for us to understand. That's what they want. We aren't going to get reform if we direct all our anger at the miscreants at AIG etc. Look at the grandstanding Congress is doing this week by passing a 90% tax rate on bonuses. Clearly it will be thrown out by the courts, but Congress will be able to assuage public anger and look like the good guys while actually doing nothing.

We need a new Progressive movement to push through a genuine reform of all financial regulation that is based on concern for all, not just the few. That won't happen if you and I don't demand it.

On another topic. I know I post a lot about drug policy and advocate the legalization of drugs, but just for the record, I don't use drugs and don't advocate the use of drugs. I just think the cure is worse than the disease.