Financial Crisis Inquiry Report gets it right

 The  Financial Crisis Inquiry Report seems well researched and well written. Here. The economic crisis was caused by lax regulation and by greed.  This grand theft in the financial markets caused at least half of the current California  economic crisis.  If the Tea Baggers opposed the financial bail outs, I am waiting to see if they will support the arrest and prosecution of those who caused this crisis.  I haven’t seen support for prosecution  yet.

California is suffering a severe recession. We have 12.5 % unemployment. We need to build the promise of of California. 

  That promise is a good job for all and  the opportunity to have  a rewarding career. That is how people become tax payers.  The austerity paradigm  being promoted by the Republicans is the same policy that produced the economic crisis in the first place.  The tax and budget cut mania proposed by the governor  does not promote good jobs and a recovery.  It will make the recession worse.

 "From the Report : "While the vulnerabilities that created the potential for crisis were years in the making, it was the collapse of the housing bubble—fueled by low interest rates, easy and available credit, scant regulation, and toxic mortgages— that was the spark that ignited a string of events, which led to a full-blown crisis in the fall of 2008. Trillions of dollars in risky mortgages had become embedded throughout the financial system, as mortgage-related securities were packaged, repackaged, and sold to investors around the world. When the bubble burst, hun- dreds of billions of dollars in losses in mortgages and mortgage-related securities shook markets as well as financial institutions that had significant exposures to those mortgages and had borrowed heavily against them. This happened not just in the United States but around the world. The losses were magnified by derivatives such as synthetic securities."

Financial crisis inquiry commission

Here's what Campaign for America's Future co-director
Robert Borosage is hoping for:

The commission must act boldly to investigate and
expose the abuses of Wall Street that left
millions of Americans suffering. This is our best
opportunity to identify the people and practices
that got the country into this mess. ...

I trust that both the Democratic and the
Republican appointees will reflect the mandate
provided by the vast majority of Americans who
want a no holds barred investigation that exposes
the practices, legal and illegal, that are at the
base of the financial collapse.

The Commission should hold public hearings across
the country, from California to Wall Street,
exposing the systematic malfeasance that inflated
the housing bubble, and gave bankers multimillion
dollar personal incentives to gamble recklessly
with other people's money.

Only by exposing the systematic malpractices that
got us to where we are can we gain a foundation
for broad reform. The Commission can play a
critical role in insuring the public understanding
and support for the change that we need.

It is clear, though, that if progressive activists are
not shining a bright light on this commission and its
work, iit could-despite the best intentions of people
like Angelides-become nothing more than another stage
for Washington blather, resulting in yet another pile
of paper to collect dust on the policy shelves. With
the damage that has been done by the policy missteps of
people in both parties, we cannot afford, and cannot
tolerate, having this commission be anything less than
the springboard for bold changes in the financial
sector.

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