The Failure of Cynicism


Welcome to the United States of America:

It’s been less than three years since the fall of Lehman. The financial crisis remains lodged in our minds, and in our jobless rate. And yet, as ProPublica’s Jesse Eisinger has pointed out, the Federal Reserve lacks a vice chairman for banking supervision. There’s no one officially in charge of the Treasury Department’s Office of Financial Research. The seat marked “insurance” on Financial Stability Oversight Council is empty. The Consumer Financial Protection Bureau has a leader but not a director. No one has been confirmed to head the Office of the Comptroller of the Currency. And Republicans are still saying Nobel Prize-winning economist Peter Diamond is underqualified to serve on the Federal Reserve’s Board of Governors.

Meanwhile, the House GOP is fighting to starve financial regulators of the resources they need to do their work. Both the Securities and Exchange Commission and the Commodity Futures Trading Commission needed extra money to scale up to their expanded roles under the Dodd-Frank law, but the Republicans’ 2011 budget proposal whacked them with sharp cuts — and then their 2012 proposal repealed most of Dodd-Frank, with no vision for what should go in its place. The irony? All this is being pursued under the guise of deficit reduction. And why do we have such a gaping deficit? The . . . financial crisis.

That’s Ezra Klein. And yes, this is stunning almost beyond belief. It’s this, more than anything else, that has convinced me over the past couple of years that America’s wealthy class is simply morally bankrupt and that the leadership of the Republican Party is politically bankrupt. Five years ago I would have been embarrassed to write a blog post suggesting that this might be the reaction of the moneyed class to an economic collapse. Then we had one and this was the reaction. Once again, events have outrun my best efforts to be cynical.

WE DON'T KNOW

What's going to happen next as the headlines grow crazier and more disconcerting by the day. But we do know the job of an independent, unrelenting press is more important than ever—and the ongoing commitment of MoJo readers to fight for a democracy where facts matter and all can participate is absolutely vital.

If you feel the urgency deep in your bones like we do, please consider signing up as a monthly donor during our fall pledge drive to support Mother Jones' fair and fearless reporting for the long haul (or make a one-time gift if that works better for you). The headlines may fade, but the need to investigate the powerful never will.