Throughout the already tediously long 21st century, it has appeared that the U.S. was in full decline, possessing for sure enormous power but not burdened by any sense of judgment. Having made that point regarding health care, financial policy, foreign policy, and environmental policy repeatedly, honesty compels me to note as well news that undermines my overarching hypothesis that we are our own worst enemy, that bad governance is destroying us. I do this seldom because such good news occurs rarely. But today, regarding financial policy, the following comment from Roubini Global Economics bears attention:
The SEC case against Goldman Sachs has revitalized the regulatory reform dialogue and renewed concerns over earnings volatility and valuations. The outcome is of little consequence now; Goldman Sachs, and by association other large banks, have been publicly vilified. The case has demonstrated the logic behind Glass-Steagall, calling into question the remit and obligations of entities that operate under the protection of implicit federal assistance.
The article’s title warns fairly that “the devil is in the details,” and it is certain that we remain far from closing this case, but here at least is at last one of those economic “green shoots” that folks have been talking about for the last year or so. May the beleaguered reform forces that exist in Congress and the White House persevere.