Banks, Regulations, and Cruz

I certainly won’t be the first person to point this out, however…

Ted Cruz is married to Heidi Cruz. She was an investment manager at Goldman Sachs. Now Ted got a million dollars in loans from big banks, yet he ran under the pretense of being in opposition to Wall Street and big bank bailouts and so on.

Well here’s the thing. He’s pro-business and against Dodd-Frank (of course, it’s regulation to prevent economic collapse; we can’t have that). The only thing he doesn’t like is the bailout. I get the idea, though, that if all the big banks had failed and our country was thrown into chaos by widespread economic collapse, he probably would’ve blamed Obama for that.

Now, I want to address the issue of banks for a moment. The obvious answer to “too big to fail” is that banks should be allowed to fail. Bailing out big banks is utter bullshit. If they engage in stupid and risky practices, they ought to suck it up and accept the price. Unfortunately, letting a big bank fail has consequences for everyone in the entire world.

Realistically, the only way to safely contain that failure is to make them smaller and therefore spread the risk around. That said, we all know that Republicans (and especially Ted Cruz) would never do the sensible thing. Instead they’ll whine about regulation while they proudly proclaim that they’d totally let our financial system implode in the face of a crisis.

Coming around to my actual point, the fact is that Ted Cruz and the Republicans in general absolutely need the banking system. As much as they might act independent, they aren’t. The most glaring instance of this is Ted Cruz with his investment banker wife and million dollar loans. He’s just as much part of New York as Trump. They’re all in the game together, no matter how much they pretend otherwise.

Update: corrected to reflect that Heidi no longer works at Goldman Sachs. She hadn’t for over a year.

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