And then there was one.
Proving once again that the endorsements of celebrities and sports heroes is more important than politicians, Donald Trump dominated the Indiana primary, prompting the official end of Ted Cruz’s and John Kasich’s campaigns. While his victory means the Trump-brand headache continues in the halls of power in Washington DC, there is perhaps no area of the country that has more to worry from a President Donald Trump than Wall Street. In fact, in spite of the rhetoric from Bernie Sanders, the other Indiana victor, Wall Street would likely rather Feel the Bern than Make America Great Again.
After all, for all the time Sanders has spent (fairly) railing against the Too Big to Fail Banks, he has never come close to diagnosing the core of their strength: the Federal Reserve and the protections they receive from the Federal government. Instead, the Bernie Sanders interpretation of the financial crisis that has all the nuance of the theatrical version of Facebook meme: big banks got greedy and government didn’t do enough to stop it, with policy prescriptions that match.
Lost in this cartoonish narrative are some important details. The Senator from Vermont ignores the corruption and moral hazard of government housing giants Fannie Mae and Freddie Mac. He overlooks the consequences of the Community Reinvestment Act. He has no interest in acknowledging that it was government regulators and their chosen rating agencies that downplayed the risk of bad mortgages. Most importantly, he fails to acknowledge that it was the actions of the Greenspan Fed that directly inflated the devastating housing bubble.