Socialist Bernie Sanders, who is seeking the Democratic nomination for president, viciously ripped Wall Street during a recent interview with the New York Daily News:
Let me be very clear about this. Alright? Let me repeat what I have said. Maybe you've got a quote there. I do believe that, to a significant degree, the business model of Wall Street is fraud.
And you asked me, you started this discussion off appropriately enough about when I talk about morality. When I talk about it, that's what I think. I think when you have the most powerful financial institutions in this country, whose assets are equivalent to 58% of the GDP of this country, who day after day engage in fraudulent activity, that sets a tone.WTF? Does Bernie have any idea what Wall Street is about? Is the " business model of Wall Street fraud"?
Wall Street is the money raising capital of the United States, if not the world. It is the epicenter from which stakes in some of the most important companies in the world are traded. Without a functionoing capital center like Wall Street, the financings of vast amounts of business projects around the world would never get off the ground.
And Bernie is calling this activity fraud!
To be sure, there is a crony part of Wall Street as evidenced by firms like Goldman Sachs, who cut crony deals with the government but this is an extremely limited part of Wall Street,
To take what Goldman Sachs is up to and paint all of Wall Street with that brush is like taking the chid molestation activities of former House Speaker Denny Hastet and claim all congressman, including Senator Sanders are child molesters.
Further, Bernie is attempting to resolve the "problem of a fradulent Wall Street" by calling for more government regulations. But it is precisley the regulations which the crony parts of Wall Steet use to stifle competion from the parts of Wall Street that don't play the crony game.
Regulations create power centers that the bad guys go after and co-opt. They are very good at it. The solution is not more regulations. It is less regulations so that the true comeptituve parts of Wall Street can be unshackled and offer true competition to those who seek to benefit only by crony deals.