Wonder what happened to Eric Holder?

You remember former attorney general Eric Holder don’t you?  He was the first attorney general under Obama who was in charge of the Justice Department during the recovery from the 2008 recession.  In an article by the Rolling Stones, he went back to his position with Covington & Burling as a partner.  It seems that they even kept a seat warm for him while he served as Obama’s attorney general.

One of the major causes of the 2008 recession was that the banks sold bonds backed by sub-prime mortgages with the highest (safest) ratings.  It does not take an Ivy League degree in law to know that this was a case of fraud.  When someone sells something using a deliberate deception in an attempt to secure an unfair or unlawful gain, the law was violated.

In his six years as attorney general, he did not prosecute a single person for the crime of fraud (related to the sub-prime mortgage crash).  As a matter of fact, his departure as attorney general came roughly at the some time the statute of limitations on prosecuting the crimes expired.  Coincidence?  I find it hard to believe.

This is how things work in a corporatist government.  The Wall Street banks supported Obama in 2008.  When he was elected, he appointed people who would be sympathetic to them.  Obama appointed Geithner who was an insider at JP Morgan and he was responsible for distributing TARP funds.  He renominated Bernanke who provided cash to the Wall Street banks from the Fed’s printing press.  Of course, Holder who made sure that none of the bankers were prosecuted.

One of the key mechanisms of free markets is that business that fail leave the market.  This allows those who are more deserving of holding capital to enter the market and earn their place.  Unfortunately, in a corporatist economy, the government props the special interests and allows businesses to hold capital that they do not deserve.

I do not really blame Holder on not wanting part of the ivory tower.  After all, why settle for the ivory tower when you have Cibola waiting for you.

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