Core Principles

Let our journalists help you make sense of the noise: Subscribe to the Mother Jones Daily newsletter and get a recap of news that matters.

AP reports on Barack Obama’s plans for financial regulation:

In remarks prepared for delivery Wednesday afternoon, the president offers no specific regulatory framework, but calls for “core principles.” Among them are consumer protections, accountability for executives and a regulatory plan that covers a broad series of financial transactions that have escaped regulation in the past.

Atrios says Obama is “making the right noises” here, but I’m not quite so sure.  Consumer protections are fine, but frankly, not really central to what caused the financial meltdown.  “Accountability” for executives is mush.  They’re already accountable in most meaningful senses of the word.

That leaves a “regulatory plan that covers a broad series of financial transactions that have escaped regulation in the past” — which is fine but could mean pretty much anything.  What’s the core principle here?

I know everyone is probably tired of hearing me say this, but I wish Obama would talk more about a real core principle: regulating leverage more effectively, and doing it everywhere and for all types of securities.  This isn’t easy, especially when you need to get practically the entire world on board, but more than any other single change it would force financial institutions to be more responsible; it would make future asset bubbles less destructive; and it would fundamentally put a stop to the casino atmosphere and outlandish paydays that have permeated Wall Street over the past decade.  If we really wanted to get ambitious, we might even try to set up a countercyclical regime that increased capital requirements in good times and lowered them during bad times.  But regardless of how the details turn out, if our new regs are driven by a core concern for regulating leverage, they’ll do some good.  If not, it’s likely to be a repeat of Sarbanes-Oxley: lots of good intentions, but not much bang for the buck.

SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

payment methods

SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate