One of the better pieces I’ve seen on CNN since, well, the first Gulf War coverage.
Goldman Sachs was the number one private campaign contributor to Barack Obama’s presidential election campaign. It’s one of the single biggest contributors to both parties in Congress. So it’s a rare event when a establishment politician like Carl Levin decides to basically open up a shooting war against a company like this.
It just doesn’t happen that much because the consequences [for the politicians] are so severe.
It’s very simple psychology: when you remove the possibility of negative reinforcement and allow the rule breakers to change the rules of the game in real time, you are not only enabling bad behavior, but encouraging future instances of unwanted behavior along the timeline.
If you doubt this, do this with your kids, your pets, etc. Animal spirits are animal spirits. Period. If not held in check by negative reinforcement — criminal charges with possibility of jail time — we have done nothing but enabled the continuation of the boom bust cycle.