Yesterday it was revealed that Federal Regulators have been looking into the manipulation of commodity futures trading over the last six months. But as Congressman John Dingell pointed out, letting the CFTC lead this investigation is the classic fox guarding the henhouse scenario.
“For too long, C.F.T.C. has been operating in the dark,” Mr. Dingell said. “Unfortunately, the C.F.T.C. has not proposed how to close off the loopholes that allow commodity index funds and others to take such massive positions that they possibly distort oil futures markets.”
It’s time for the Obama campaign to point out to the American public that the CFTC’s record of corruption was created by Phil Gramm (with assist from his wife Wendy). As David Corn points out in his devastating investigative article on Gramm, he birthed not only the coming commodity bubble but the sub-prime meltdown. And Phil Gramm is John McCain’s key economic adviser, who only yesterday McCain hailed as a self-less public servant.
Who’s to blame for the biggest financial catastrophe of our time? There are plenty of culprits, but one candidate for lead perp is former Sen. Phil Gramm. Eight years ago, as part of a decades-long anti-regulatory crusade, Gramm pulled a sly legislative maneuver that greased the way to the multibillion-dollar subprime meltdown. Yet has Gramm been banished from the corridors of power? Reviled as the villain who bankrupted Middle America? Hardly. Now a well-paid executive at a Swiss bank, Gramm cochairs Sen. John McCain’s presidential campaign and advises the Republican candidate on economic matters. He’s been mentioned as a possible Treasury secretary should McCain win. That’s right: A guy who helped screw up the global financial system could end up in charge of US economic policy. Talk about a market failure.
When the American people find out that Hedge Fund Billionaires have been gaming the oil futures market with 10% down payments, thanks to John McCain’s future Treasury Secretary Phil Gramm–Pat Buchanan’s old “Pitchfork Brigade” is gonna come looking for these two old coots (above) and its not going to be pretty.