The Details that Blind the American Public

One of the ways those in power control the masses in a democratic country is to foster a very lively debate on a very limited range of issues. If the issue is whether or not the government should bail out the U.S. financial services industry, the government would rather have us focus on whether the funds were paid back or not. While it’s good that some of the TARP funds have made it back into the Treasury, it may not be so good that a limited range of very large corporations now know they can count on the government to bail them out if they make foolish long-term decisions for short-term gains.

Some think the Consumer Financial Protection Bureau that came online this week will prevent another financial fiasco. Others may disagree, but the debate has largely centered on who will run the CFPB and not whether it will come close to fulfilling its mission. Arguing over whether it should have been Warren instead of Cordray running the CFPB is to skip past the question of whether it will even work as a regulator.

A new bill in Congress now will change the way Fannie and Freddie operate, but it falls far short of taking the government out of the housing business. A debate will rage over the details in this bill, but those that want the government to remain the first best source of home finance liquidity will have already won.

It’s not easy to focus on what’s important when there is so much information flying around about the economy. But what we choose to focus on as voters may determine what control we have (or give up) over our financial future. What will you be focusing on this weekend?