Constitutional Nihilism

We are now subjected to the second >2,000 page 'reform' bill in six months - this one for Financial Services.   This bill is roughly 15 times longer than the previous financial regulation record holder:  Gramm, Leach, Bliley, in fact it is longer than all other financial legislation in the history of the Republic.


Of course, no one can read, let alone comprehend the implications of such an enormous tome.  Which begs the question:  why do this at all?  If the purpose is to reduce speculation and risk, then having a vast, unreadable bill the size of an Encyclopedia would seem to be the wrong move.  It will increase regulatory uncertainty and make it virtually impossible for the various players to figure out what is or isn't legal.  The prosecutions and litigation will light up the night sky over Wall Street even as the lights in the buildings go permanently out one by one.  Indeed it's hard to see anyone benefiting from this other than our grossly overpaid and arrogant legal establishment.

Steven Pinker describes the biological basis for human nature in his book the Blank Slate.  At it's center is the drive for power and dominance, a human trait that our Founders sought to constrain with 'ambition checking ambition'.  But the Founders always assumed that there was purpose behind the lust for power - that there was a point.  With this ludicrous bill (and the laughable healthcare 'reform') our lawyer leaders have all but abandoned the notion of law serving the people and making things better.  Such an incomprehensible pile of words can NOT hope to have a positive impact on our financial system.  It instead is an enormous source of profitable chaos and political extortion - banks can't help but be guilty all the time.  At a time when our economy is faltering and lenders are frozen, this will guarantee a steady withdrawal of credit to friendlier, less venal climes.

So why do this?  It must be obvious to the left that they are going to suffer a crushing legislative defeat in the fall.  Their belief is that they have festooned this law with so many special privileges that it will be virtually impossible to repeal unless the Republicans can generate massive majorities similar to the ones that they have now.  And since the lawyer class, particularly in the financial sector is a left wing subsidiary, the left will wax fat on the carcasses of the banks during their years in the wildneress.  And the banks, knowing who did this to them will pay  handsomely for protection next time.

It's Constitutional Nihilism, coming to a bank near you.