Chart of the Day: Another Sign That Dodd-Frank Is Working

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Via Matt O’Brien, this chart from JP Morgan shows financial sector leverage over the past few decades. As you can see, leverage skyrocketed during the Bush era, which contributed to the 2008 financial meltdown, and then plummeted shortly thereafter. Then it flattened out for a couple of years, and under normal circumstances it probably would have started to climb again when the economy began to recover. Two things stopped it: Dodd-Frank and Basel III, both of which mandated higher capital requirements and thus lower overall leverage levels. This has reduced Wall Street profits but made the banking system safer for everyone.

In other words: financial regulation FTW. Nothing is perfect, and Wall Street is doing everything it can to undermine Dodd-Frank during the rulemaking process, but if it accomplishes nothing except encouraging less leverage it will have done its most important job.

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SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

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