Investigations underway into U.S. market manipulation, credit-default swaps

If you’ve lived long enough to vote for president more than once, you can count on one thing in an election. For the Democratic Party, the issue is always the economy. That’s partly due to disasters in foreign policy dating to Woodrow Wilson’s time, in my opinion. The DNC always appeals to the time-honored motivator we all share to some degree: greed. Don't read academic histories. You want to learn real history, read newspaper archives and first-hand accounts.

When the economic meltdown began, I did several stories. It seemed opportune, of course, a financial dilemma occurring as Election Day neared. Just what the Democratic ticket needed: a focus on the economy. The Democratic Party may tout small donations, but we’re painfully aware of the financial might of donors who are some of the richest in the world. Toss in the collective wealth of unionized actors, comedians and other entertainers—you get the leviathan dollar sign picture. I have no idea whether any of this relates to Democratic supporters, but I'm just saying it is coincidental. And now a couple of investigations are underway.

In September CNN ran a brief story about an SEC investigation into market manipulation, reporting, “The Securities and Exchange Commission (SEC) on Friday announced an expansion of its ongoing investigation into possible market manipulation, and also approved a formal order of investigation to allow its staff to obtain information by subpoena.”

And on Thursday, the Wall Street Journal reported, “Federal and state prosecutors in New York have combined forces in a broad investigation of the credit-default swap market including potentially improper trading of swaps. Representatives for U.S. Attorney Michael J. Garcia and New York Attorney General Andrew Cuomo confirmed Monday their offices are working together to probe trading of the swaps, or contracts in which one party insures another against the risk of losses.”

Meanwhile the Pelosi-Reid Congress refuses to investigate members of Congress involved in oversight of the government sponsored enterprises, Fannie Mae and Freddie Mac—the real foundation for this crisis. What might that refusal say about the economic meltdown?