This wont happen again... right?

An article in Business Week titled Financial Reform: Lessons from 1929 brings up some interesting parallels between the regulatory efforts during the great depression and those going on today.

Now:

"Establish a "commission" of politicians and lawyers to investigate the problem. Check!"The Financial Crisis Inquiry Commission, set up by Congress to tell us who killed the banks and what to do about it, has just held its first meeting. Established by law in May, the 10-member panel gathered on Sept. 17 to appoint its executive director: Thomas Greene, a longtime California prosecutor."

Then:

"After Black Monday and Tuesday in October 1929, several senators called for new laws to prevent another crisis."

Here's what happened:

 "But over the next six months, stocks recovered 90% of their losses from the Crash. (President Herbert Hoover called it "the little bull market.") Appetite for reform waned, and bankers assured Congress that heavy-handed regulation was unnecessary—even counterproductive. They would reform themselves. Sound familiar?"

(Riholtz, you don't really think this is going to work?)

Oh, and don't feel bad for the 10 poor saps stuck on this commission-

"Congress appropriated $8 million to examine the causes of the recent crisis"

Only time will tell what we learn from, but I can't help but think that it won't be much.

For our visual learners: (via The Big Picture via Salon)