Matt Taibbi Has Just called for a Riot Against Wall Street Regulators

In an new Rolling Stone piece, Why Isn't Wall Street in Jail?,  Matt Taibbi does an excellent job of detailing how the Wall Street elite have captured government regulatory agencies, particularly the SEC and DOJ. Taibbi has his trademark quotes in this article that will give the story legs.

If you don't believe that the Wall Street elite have government captured, you will after reading this article.

The one problem with Taibbi's article is that he writes with a broad brush and implies that all of Wall Street controls the government. He fails to differentiate between outsiders who are constantly harassed by regulators and the elite who pay off the regulators in one manner or another and who don't take the regulators seriously.

The current crackdown by the SEC and DOJ on expert networks, which is heavy on the arrest of Asians, who are not part of the club, is an example of how the non-elitists get harassed. Raj Rajaratnam, who is the founder of the hedge fund Galleon Group and who was born in Sri Lanka, is now the major focus of the SEC and DOJ for the non-crime of insider trading. Others arrested in this crackdown include Manosha Karunatilaka, Don Chu and Winifred Jiau. To be sure there has been collateral arrests of a few Anglos, but not any connected Anglos.

When Taibbi discusses how John Mack was able to avoid becoming a target of an insider investigation, Taibbi fails to contrast Mack's insider credentials with the aggressive SEC/DOJ investigation of the non-elitist Asians.

In fact, the elitist must love the DOJ show trial about to be put on against Rajaratnam, since the lead prosecutor will be Preet Bharara, U.S. Attorney for the Southern District of New York. Bharara was born in Firozpur, Punjab, India. Get it? No discrimination here. It's just a cage match between South Asians.

Elitists love cage matches. When John Gotti was tried, they found an Italian-American prosecutor to go up against him. A female on top of it! Assistant U. S. Attorney Diane Giacalone.

Taibbi also doesn't go into the more philosophical issue of whether there should be an SEC at all, even though it will always be the target of elitist regulatory capture. He leaves the story hanging at the outrageous conduct of various SEC employees. It's like fueling the Egyptians to riot against Mubarak, only to allow the military to run things "for awhile", once the riot succeeds in overthrowing Mubarak..

The SEC needs to be disbanded. It is an important first step in removing elitist control of Wall Street. "Fixing" the SEC won't work and Taibbi, by leaving the story where he has, may cause an uproar to fix the beast, which will only result in more control of the beast by the elitists.