Can Progress be made in America without the Feds Playing a Tighter Role in Regulation?

As we write this blog, today is Sunday, February 22 -- only about a month after Barack Obama was sworn in as President. Obama was elected with a strong mandate for change and now, barely more than 30 days after he was sworn in, "Change" is fast on its way. The economic stimulus package, State Children's Health Insurance Program (SCHIP) and Lilly Ledbetter Fair Pay Act have passed and been signed into law.

Meanwhile, the housing crisis, the automakers' mess and the banking situation still need additional help, as does the need to bring the federal government back to its traditional role as the enforcers of tough regulation. Yesterday, one of our readers wrote in to ask,

"Where the hell were the auditors, regulators? This continuing string of travesties may be enough to cause the American people to become like Howard Beale in Network, "Mad as hell" and "Not going to take it any more." They might even give up their self-destructive love affair with Ayn Rand, Alan Greenspan, and Ronald Reagan's apotheosis of selfishness to the pantheon of virtues."

The widely reported story our reader referred to was "Madoff Never Made Supposed Investments" So far, the court-appointed trustee has examined records "only" back to almost 1993 and no evidence that any securities were ever purchased during that time has been found.

Assuming this remains true as the investigation continues, this fact raises further question, e.g., where did the trade confirmations and fake statements to investors come from ... from someone at the Stock Market? ... and why didn't all these "checks & balances" (Stock Market, Brokerage Firm, Bank Accounts, IRS, etc., etc.) ever come to light through our government "regulation" system? Remember that Madoff confessed ... no government regulatory authority actually looked into this crime.

Chairman Edolphus Towns from New York is the new Chairman of the House Oversight and Government Reform Committee. Let's watch carefully to see that the Madoff situation gets the full investigatory spotlight, so that we can learn which regulatory agencies dropped the ball and who profited in addition to Madoff.