Congress, and much of the public and media, can understand the financial crisis only in populist terms, as the product of the machinations of greedy, reckless, overpaid, perhaps criminal denizens of "Wall Street." Systemic causes of the financial crisis, such as unsound monetary policy, deregulation, lax regulation, regulators asleep at the switch, unsound economic theories, complacency, quirks of the tax code, deficits, Chinese trade policy, mindless governmental promotion of home ownership, and so forth, are beyond them. The government is willing to play to the ignorant partly because in a democracy popular views must always be treated deferentially; partly because (in all likelihood) it doesn't think that the people, the Congress, and the media (except for the most sophisticated financial journalists) can understand a serious economic analysis; and partly because the populist account conveniently deflects attention from the failures in which the current economic leaders of the nation were complicit in the run up to the crisis--unsound trade policy, excessive financial deregulation, lax regulation, complacency, lack of foresight, lack of contingency planning.
Of course if the officials who screwed up said they'd screwed up, the people and the Congress would be reluctant to entrust them with responsibility for redesigning the regulatory system. So they must find scapegoats, and where better than on "Wall Street"?
The thrust of the article is that the commission appointed to figure out what caused the financial crisis of 2008-2009 has all of the respect of a state-fair cow judging commission [okay, probably not that much respect . . . .], and that the administration and the regulators and Congress are all getting busy "reforming" the laws without looking at what really caused the problem. I have a hard time believing that the administration, the regulators, or Congress could possibly be so wrongheaded and craven.
*I lied; I suspect that the Mythical Monkey has some pointed criticism of "Chicago School" Posner . . . .