Gamblers and Wall Street

From one of the comments to a recent post, came a link to this political press release:

Press Release of Senator Cantwell
Cantwell Moves to Close Derivatives Loophole
Cantwell Introduces Legislation to Help Stop Abusive Speculation Practices

Tuesday, November 10,2009

WASHINGTON – Today, U.S. Senator Maria Cantwell (D-WA), together with Senators Ron Wyden (D-OR) and Bernie Sanders (I-VT), proposed legislation empowering state gambling regulators and attorneys general to examine unregulated derivatives trading and take appropriate action to protect citizens from practices which can harm the foundations of our economy. As part of a broader effort by Congress to pass comprehensive financial regulatory reform, Cantwell’s proposal treats derivatives trading for what it is: a sophisticated form of gambling.

I applaud the attempt, but it's not going to happen anytime soon. A racket that generates a $600 trillion market is going to have the kind of money that can deploy a few battalion of lobbyists who, clad in hand-made bespoke suits, can direct special interest groups to make bribes campaign contributions at levels that make the health insurance industry look like their lobbyists are living in Bushvilles.

Those three senators are right, but that sort of bill will become law when dogs are doing differential calculus.