Posted on 05/20/2009 5:21:59 AM PDT by randita
Posted by Karl Denninger in Editorial at 08:12
Ok, You're A Crook Obama
I was willing to give President Obama the benefit of the doubt.
Not any more:
May 19 (Bloomberg) -- The Obama administration may call for stripping the Securities and Exchange Commission of some of its duties under a regulatory reorganization that could be unveiled as soon as next week, people familiar with the matter said.
The proposal, still being drafted, is likely to give the Federal Reserve more power to supervise financial firms deemed too big to fail. The Fed may inherit some SEC functions, with others going to other agencies, the people said. On the table: giving oversight of mutual funds to a bank regulator or a new agency to police consumer-finance products, two people said.
That is unconscionable.
Go back and read the White Paper I published a couple of days ago.
The Fed had primary responsibility for preventing banks from lending unsecured beyond their excess capital. Instead they willfully and intentionally covered up bank insolvency through the use of "23A" letters and other machinations.
This is not conjecture - the historical record is present for anyone who cares to look. The 23A letters are a matter of fact, not supposition and the fact that several firms given them "in the interest of stability" later failed and resulted in significant losses to the system as a whole, including the FDIC, is also a fact.
That "Prompt Corrective Action" absolutely barred this sort of action is a fact.
That The Federal Reserve Act has been intentionally ignored is a fact.
Now President Obama wishes to give the fox, who just got done eating half the chickens, formal status as guard over the henhouse?
Please don't take this as an endorsement of the SEC. After all, the SEC in 2004 granted Henry Paulson's request (on behalf of Goldman and the other investment banks) to drop the 12:1 leverage limit - a change that we now know was directly responsible for the failure of both Bear Stearns and Lehman!
For those who want to play "banker baseball" your ire is misplaced. We have formal regulatory structures in our government that are charged with preventing this sort of nonsense.
These regulators have been sleeping (in some cases with) or actively conspiring along with those who created this mess; without an ignorant or complicit regulatory function it is not possible for the sort of game-playing that has gone on to occur, nor can the damage that happened our our economy come to pass.
Heads need to roll across the board; we can argue about what agency should get regulatory responsibility going forward after we deal with ejecting sans parachute each and every person involved in intentional malfeasance or misfeasance thus far, including Geithner, Bernanke and all the "career folks" at the SEC who it is alleged have been trading on inside information!
This nation desperately needs a statesman who will stand up and say "no more fraud and theft - period damnit! Every one of you jagoffs is going straight to prison!"
We weren't going to get it with McCain and his condescending brand of political crap, but it has unfortunately become very clear that Obama is similarly compromised.
Prepare for The Greater Depression folks, because with this sort of outrage and a refusal to address the problem through reform and punishment for the guilty who brought about this disaster it is inevitable.
SPX 300 is on deck.
PS: We need a new political party and we need it now.
Are you kidding me?
Unbelievable. That explains a lot of the uneasiness I've had reading his blog/articles. Something didn't add up.
He's got a lot of effing nerve writing his economic columns with such fury if he couldn't see what a commie Obama is.
His explanation is that McCain was a guaranteed 100% failure. 0bama was only a 99.9% failure.
Hard for me to believe it either, but his reasoning is that he actually thought McCain would be worse for the economy. So, I guess you’re right - he was blinded by the Obama “aura” like so many other millions.
Where the law of the jungle has replaced the Law of the Land! /sarcasm
Give the bastard what he voted for and give to him HARD!
I predicted when Obama gets done, there won't be a Democrat elected president for a generation.
The people are going to find out capitalism and economic opportunity share a beating heart. Kill capitalism, as Obama is doing, and you kill the economy from top to bottom.
We have a very clear history of how an economy goes when the government runs everything. The post-WWII history of eastern Europe and the Soviet Union are there to study. Unfortunately our Marxist schools and media have either lied about it or covered up the truth.
Our educational system has failed to answer the question "What's wrong with socialism."
Idiots like Denninger and the others who elected Obama are going to learn the correct answer in the meanest way possible and suffer in a way they will never forget.
As president, McCain would hve been a irritating pain in the ass, much like a zit that doesn't go away. He wouldn't, howver, have been the raging America-hating, secret Mudslime, Marxist cancer that Obama is.
Our educational system was ASKING that question, rhetorically, with the implied response of "nothing!"
My own assessment was that McCain would have been really, really, really, really bad.
0bama, however, would have been (and is turning out to be) unspeakably ghastly.
And I told you all after the election in November that politics is over.
I've been reading lots of Denninger for the last couple of months, and very little of Free Republic.
You'd better figure out how to protect your property, your paycheck and your other assets. These sorts of issues are a weakness of FR.
AND FURTHERMORE - we're not going to get the desired reaction to ObCommie here, because this is a conservative echo chamber.
We need the apolitical oldsters to get mad about their retirements, and people like Denninger to expose the government for what it is - a scurvy crew of thieves - BOTH parties.
The Democommies would have never been able to maneuver their way into this position if the Pubbies hadn't gone Big Gov on us, and if we'd have gigged them for it before 2006.
Silly us - we thought it was about the Mooselimbs, and the fact they want us dead. We didn't realize it was about turning America Commie...
If he woud have done his basic research like the rest of us, he would have already known this by the friends 0bama keeps.
These rascals in Washington knew there was a disaster looming and chose to take the barrel over the Niagara Falls of financial disaster!
Hell hath no fury like a moderate scorned.
We NEED people like Denninger. The man in the street doesn't read FR, and is politically retarded - which is just the way the ObCommies like him.
There are no companies of any kind that are too big to fail. Even the government of the United States of America is not too big to fail, as Obama seems determined to demonstrate.
This is the first step towards the Gubmint controlling them. We are screwed. Start buying gold.
I’m reading Mark Levin’s new book and he goes into great detail describing how the financial catastrophe happened. Much (but not all) of the blame is the Democrats to own.
This guy is supposed to be so good in fore seeing what's going to happen in our economy yet he didn't see Obama as bad for business?
The real plus of having McCain in office instead of Bozo is that the legislature would have voted down every thing that McCain tried to do, including the same stuff Bozo is doing now. The dimwits would never let a Republican take credit(not that any will be forth comming)for anything.
The other big plus would have been Sarah waiting in the wings for 2012.
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