"As a result of the Pecora Commission's findings, the United States Congress passed the Glass-Steagall Banking Act of 1933 to separate commercial and investment banking, the Securities Act of 1933 to set penalties for filing false information about stock offerings, and the Securities Exchange Act of 1934, which formed the SEC, to regulate the stock exchanges. Some argue that thanks to the legacy of Pecora Commission's hearings and subsequent regulatory legislation, American economy had a sound financial system for roughly half a century."
"Bitterly hostile was Wall Street to the enactment of the regulatory legislation." "Had there been full disclosure of what was being done in furtherance of these schemes, they could not long have survived the fierce light of publicity and criticism. Legal chicanery and pitch darkness were the banker's stoutest allies." — Ferdinand Pecora
Also, "Pecora's investigation unearthed evidence of irregular practices in the financial markets that benefited the rich at the expense of ordinary investors, including exposure of Morgan's "preferred list" by which the bank's influential friends (including Calvin Coolidge, the former president...." http://en.wikipedia.org/wi
Calvin Coolidge was Ronald Reagan's favorite. Coolidge was the darling of the laissez-faire capitalists. They claim his tax cuts for the rich brought in the Roaring Twenties, which was a planned bubble and planned crash just like 2008.
The mundane solution:
Populism (American Politics) A social, political, and economic PHILOSOPHY that advocates government participation in business, industry, and commerce in the interest of protecting the economic freedoms of individuals, particularly from exploitation by an inflexible BUREAUCRACY and financial CONGLOMERATES. The Populist movement was first organized by farmers in the nineteenth century, and grew into a full-fledged political party. Populist sentiment in the twentieth century, particularly strong among the poor and minorities, has resulted in such government responses as federal control of the railroads, programs to aid farmers, and ANTITRUST LEGISLATION. (Dictionary of Cultural Literacy)
Alan Greenspan hates Populism. What else do you need to know to love it?Â Â Â Â