Pecora Commission

Saturday, Apr 25, 2009

On March 2, 1932, the Senate Committe on Banking and Currency... was authorized... to make a thorough and complete investigation of the practices with respect to the buying and selling and the borrowing and lending of listed securities and the effect of such practices upon interstate and foreign commerce, upon the operation of the national banking system and the Federal Reserve System, and upon the market for securities of the United States Government, and the desirability of the exercise of the taxing power of the United States with respect to any such securities.


In the course of the investigation thus far conducted by the subcommittee a record of more than 12,000 printed pages has been compiled and more than 1,000 exhibits received in evidence. The subcommittee has endeavored to investigate thoroughly and impartially some of the complex and manifold ramifications of the business of issuing, offering, and selling securities and the business of banking and extending credit. It has endeavored to expose banking operations and practices deemed detrimental to the public welfare; to reveal unsavory and unethical methods employed in the flotation and sale of securities; and to disclose devices whereby income-tax liability is avoided or evaded. Its purpose throughout has been to lay the foundation for remedial legislation in the fields explored and in some measure that purpose has already been achieved. During the progress of this investigation, Congress enacted the Banking Act of 1933, the Securities Act of 1933, the Securities Exchange Act of 1934, and several amendments to the revenue act calculated to eliminate methods of tax avoidance described before the subcommitte.

Stock Exchange Practices Report, June 6, 1934, United States Senate, 73rd Congress, 2nd Session,

The Great Depression lasted another 12 years.

The SEC was created in 1934 to "add regulation" and combat fraud. The SEC missed Bernie Madoff's ~$50 billion ponzi scheme (with ample evidence from Harry Markopolos, an independent investigator).

The Board of Governors of the Federal Reserve System and the Federal Open Market Committee shall maintain long run growth of the monetary and credit aggregates commensurate with the economy’s long run potential to increase production, so as to promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates.

Federal Reserve Act of 1913, US CODE: Title 12,225a. Maintenance of long run growth of monetary and credit aggregates,

It has failed in nearly every capacity of its purpose and charter. We've never had such huge drops in employment. CPI has exploded. Increased production? Our manufacturing base has withered. What do we create? Word documents?

Before 1913, when the Federal Reserve System was created, there was never as bad of a depression as the Great Depression of the 1930s.

We keep creating institutions which keep failing us when the free market systems before, although imperfect, worked better (Industrial Revolution of the 1800s, never as catastrophic of an economic collapse, etc.). All the while, each government institution complicates and constricts our activities and freedoms.