The coming of the financial plague: Elizabeth Warren can stop it

Brown vs. Warren--the second most important election this year

By Henry Schoenberger

The second most important election this year is to elect Elizabeth Warren to the Senate. (The first is to return Obama, given his flaws, but who else supports the common good.)

 And then, in four years, elect a woman president; a person who has the intellect, wisdom, and judgment, as well as the integrity and courage to stand up for what makes sense combined with an ingrained concern for the public good. Elizabeth Warren is of the people and for the people – which is exactly why Republicans are so afraid of her!

Think about why she was squeezed out of Washington by men who were so threatened by her fierce independence and her advocacy for our government to Act in Good faith to protect the public good - which Thomas Jefferson said was the role of government.

Elizabeth understands the root cause of what led America into our present chasm of financial despair and vast economic inequality.

Elizabeth understands the root cause of what led America into our present chasm of financial despair and vast economic inequality. A chasm that Paul Krugman and Arthur Laffer agree is a depression! The root cause is the return of Social Darwinism metastasized into Financial Darwinism, which I warned about in my first book in 1990 and exposed in my new one.

Further Elizabeth knows what is so wrong with the Fed and the SEC. She understands that the SEC failed to enforce existing regulations. So, for a welcome change, Obama appointed a professor from Harvard Law (a brilliant woman who cares about the public good) to protect consumers from the sociopathic greed of banks. And Elizabeth could not be bribed by political contributors or go with the flow to get ahead.

It is self evident her integrity was threatening to the: pleased as punch (quote Hubert Humphrey) to be bribed group. Of course banking lobbyists did not want Elizabeth confirmed. (Hopefully, Obama decided Elizabeth would be more valuable to America in the Senate, because she already had established the parameters for consumer financial protection – against overwhelming odds!) Remember Cox, the Secretary of the SEC, who went to Harvard Law but did not know how to cancel-revoke-quash contracts to pay the financial pigs at Merrill Lynch who helped cause our current depression, and Merrill’s collapse by contriving and selling fraudulent investments.

From four decades of living inside the securities business, as well as from my concern as an activist for the common good, and from the experience of writing two books – the first warning about what was going wrong 1989, as Wall Street, by then, had turned from real investment (which provides capital formation to create businesses and jobs) - to financial investment (which creates only fees and net worth for the Street) - I know the importance to our country of electing Elizabeth Warren to the Senate, and believe that Massachusetts will stand up for such an incredible person, who has come along at a time when she is so needed. Teddy Kennedy always defended the beliefs our Republic was founded on, and no one will follow in his footsteps like or better than Elizabeth. (Let’s admit that women are tougher than men, so she will be a forceful, outspoken advocate of what is right and what clearly makes sense – Elizabeth will not be subject to the stain of all the political money.)

Remember that Republicans were so afraid of her ability and unswerving integrity combined with her iron resolve to do what is right they refused (in lockstep) to allow her to be confirmed.

Think about her ability and perseverance to have accomplished setting up the functional Consumer Financial Protection Agency! Remember that Republicans were so afraid of her ability and unswerving integrity combined with her iron resolve to do what is right they refused (in lockstep) to allow her to be confirmed. Think about her life experience and how she has arrived at this point in time to defend American values.

In my new book, How We Got Swindled by Wall Street Godfathers, Greed & Financial Darwinism: The 30-Year War Against the American Dream, with a foreword from David Satterfield, former business editor of the Miami Herald and 2 times Pulitzer Prize-winner, I have called for the establishment of: The Doctrine of Fairness. And I know of no one more pre-eminently qualified or better suited to fight for fairness for the people, in lieu of succumbing to the self interest of the Financial Darwinists. Satterfield said, Financial Darwinism means survival of the richest.

I sent Elizabeth, with her permission, an early draft of the manuscript for How We Got Swindled; before David Satterfield thought it was good enough for him to write the foreword. The book has been available since January with Dave’s foreword, and his endorsement on the back cover:

“With keen intellect and searing wit, Henry Schoenberger’s How We Got Swindled exposes the myriad of financial hijinks and colossal leadership failures that have turned the first decade of the new century into an economic disaster. Schoenberger not only identifies the causes, rationales and human failings that led to this mess; he provides some ready answers for how we must go about fixing it. This should be must-reading for every policy maker in Washington and every student of economics and finance.”

Dodd-Frank and the Volker Rule will not prevent the plague. The SEC and the Fed will not interfere with their friends and former colleague’s freedom to make as much hay as possible while the sun shines.

From 44 years of being licensed in the securities business - I know how important it is to have Elizabeth in the Senate to help prevent the coming plague of derivatives – which must be banned – outlawed! $700 Trillion Derivatives, like an H-Bomb sized financial plague hovering above waiting for the detonator. Dodd-Frank and the Volker Rule will not prevent the plague. The SEC and the Fed will not interfere with their friends and former colleague’s freedom to make as much hay as possible while the sun shines. With millions and billions squirreled away, lots of the loot in offshore accounts to avoid US tax, just like Romney – but who cares. Not the Americans in OUR Congress who swore allegiance to Grover Norquist, against the best interests of Americans, hiding behind flag pins.

 Elizabeth has called for a return to Glass-Steagall to separate banks from investment banks! Glass-Steagall was 35 pages - Dodd-Frank is over 800 pages, and the Fed has 1.847 pages of regulations and rules in the Fed Bank Holding Company Manual – too complex to administer! Just like the too complex to explain investments which can’t be explained well enough to be understood, therefore are outlawed by Fed BHC regulations.

Why should our Fed, with US treasury dollars, stand behind investment banks that lobby for markets for liquidity to create the plague of derivatives? Elizabeth Warren knows the importance of combining Glass with re-enacting the 1956 Bank Holding Company Act to restrict the toxic size of banks. Does Brown care, or has he indicated he knows that the deregulation of greed has caused our depression. Do the Republican pawns of the ultra rich, the Republican base, understand – when they are mostly creationists? There is a reason so much money is against her – the Wall Street Godfathers and Big Businesses that practice sociopathic greed in the name of survival of the richest – are afraid of Elizabeth’s insight and incorruptible guts!

So Massachusetts, once again it’s time for you to lead the way to freedom – this time it’s freedom from the Tea Party, from creationists, from the “Wrong Wingers” and Wall Street’s toxic leverage – which really has created an H-Bomb of financial risk - $700 Trillion Derivatives which could easily become a financial plague of worldwide proportions. This is a pivotal moment in our Republic to stand up for the public good, logic and reason. Corporate personhood – nuts, why not have two Harvard lawyers who understand how political and wrong the Supreme Court has become?

Elizabeth Warren is the best one to trust to deal with the coming of this plague. To learn what I have learned in the last 45 years, and know what Congress and Wall Street do not want you to know and what most members of the Fourth Estate do not really understand or have the courage to tell us: www.howwegotswindled.com.

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