I apologize, my excerpt didn’t come out quite right. Grrr.
Uh, I think Obama got his ass kicked in Massachusetts and is trying to change the subject. Denniger is wrong. Perhaps Denniger would like Obama to look through HIS checkbook and determine whether Denniger is spending HIS OWN MONEY in the way Obama approves.
I bet Karl would not like that.
Volcker’s support does not impress me....what this proposal is amounts to the government determining what the private sector can invest in. The bailouts were wrong, and so is this proposal.
I only agree that any bank that engages in risky investments should either lose its government insurance or pay a much higher premium. More government regulation is exactly what we do not need.
If by “finally wake up” you mean “saw the mob with the pitchforks and torches coming at him and took off running” then yes, he woke up. But he is incapable of doing anything about it that will do any good. He is trying like hell to change the subject.
Perhaps he should get his banks Fannie/Freddie reformed before he takes over the private banks. This should be fought, banks are private enterprises...er...were.
Pray for America’s Freedom
What he says and what he will do are two different things.
I’ve been checking dailykos for a few days (while holding my nose, the stench there is overwhelming) and these people are just absolutely livid. They want him to swing to the left in a big way and they want it now. Those people are his base. He’s not going to lose them moreso because he’s not going to score any points with us anyway.
I like Karl’s thinking. I don’t know how he and Zero can come to the same conclusion, but I’m not inclined to look this gift horse in the mouth.
NObama was born in denial.
He was raised in denial.
He has lived his live as a “community Organizer” in denial.
He got into a land deal with Rezko while in great denial.
He ran for President while in denial.
He is “leading’ our country while perfecting his particular state of denial.
He will die-—all the while denying that it could ever happen to him.
The world has global overproduction. Overproduction is something that is forbidden to be studied in Business Schools. Overproduction means too many factories, too many homes, too many ships, too many office buildings.
Whenever you have overproduction and overcapacity, you get deflation. Prices fall. Factories close. Office buildings vacated.
In this manner you get capitalism’s “Creative destruction.” All of the marginal businesses fail.
Recessions clean out the inefficient businesses. Without recessions, you grow too inefficient over time.
Plus, the Baby Boomers are hitting Retirement Age. Between 2007 and 2025, you’ve got 77 million Boomers retiring.
That’s a massive shrinkage in our educated workforce.
Changing banking regulations isn’t going to change the age of those Baby Boomers!
It’s the business cycle. Booms. Then busts. Governments can delay the busts, but eventually you’ve got to have a naturally down-cycle for the economy.
Trying to eliminate the “busts” is a fool’s errand. That only prolongs the agony and pushes off the eventual recovery.
See Japan circa 1989 to 2010.
"Never let a good crisis go to waste ..."
Taquiya, Obama-style.
|
In order to get his agenda through Zer0 needs a villain. Before it was the GOP, everyone knows the GOP was shut out of anything but they were still obstructing. Now all the sudden its the banks for taking TARP money. THEY WERE FORCED TO TAKE IT AND THEY PAID IT BACK!!! If you recall even the solvent banks had to take TARP because we didn't want investors to know which were the weak banks. If they all took TARP then they all appeared troubled.
Don't let Soetoro's soothing talk lull you back to sleep, he hasn't dropped the agenda, he's just trying a new tactic.
If the Obumbler wants to clean up the banking sector, he has to start with Fannie/Freddie, not the private banks.
These actually sound like common sense proposals to me, despite the fact they are coming from the Obama Administration.
Which also tells me they are not populist enough to have the desired effect of firing-up his base. That is gonna take something like a national cap on credit card interest (rolling back to before Congress passed their regulations) and a ban on ATM fees. They are gonna get a lot of heat from Progressives to do something that average people will actually notice.
No, we should not.
It all sounds so good....right? All this populist nonsense is just that. It was not banks that caused the banks to have problems. It was the government securities relating to mortgages that they traditionally invest in for safety reasons that caused the mess!
Banks for the most part, did not need money until their investors, as in the case of the investment banks, withdrew their funds all at once during the crash in 07-08. Some of the biggest did not need money but were forced to take it by the government. The government promised to get out of their faces after the crisis and they lied. Obama is using the crisis to further regulate the profits of investment banks and this is not good for the markets or the economy.
Regular banks where one gets loans and saves money were deregulated some years back so they could expand what they do to include selling insurance and securities. The Glass Spiegel bill had ties their hands and was modified under republican congressional control to release the stranglehold government had previously had over them. This did not cause the problems but the left needs a bogeyman!
The real source of the problems were Fanny Mae and Freddie Mac and Sallie mae which are government highly regulated and secured so called private institutions. Various groups and cabals in the congress forced rules on them for lending that made it possible for any idiot to borrow money from them. These government sponsored lending institutions must in turn sell these loans to private investment banks to keep the pot of money fresh so they can continue lending to idiots which they did.
The investment banks then do what they are designed to do and package these loans, now called securities into all sorts of financial products that are sold worldwide but they don't keep much of it as that is not what they do. This is how Goldman Sachs, who lost billions in other investments, was not hammered as bad as some others who invested in this crap. Goldman was lucky but other investment houses with different investment strategies were not.
These securities which were originally based on mortgages and home improvement loans come in all sorts of flavors for the markets. The more these things were broken up, the wider area the risks associated with them was spread. This is a normal aspect of lending and the banks only did what they are designed to do. But when the original loans were not paid, the entire system began to break down. The banks who purchased these highly rated securities thought they were safe. But many insured themselves against loss by buying a form of insurance called a credit default swap. As it turned out, the bulk of these default insurance securities were sold by AIG. That is how they got caught up in this mess and by no fault of their own because the ratings companies mis-rated the risks largely due to the governments implies backing of the original loans.
So you see.......we once again are back to the government, time and time again as we follow the money.
To sum up, because I could go on all day with this crap. The Congress of the United States of America used their regulatory power to force lenders they regulated, Fanny ad Freddie, the biggest of them all, to lend to unqualified borrowers. They in turn could not pay the money back and never could have done so even in good times. This rippled through the system causing untold damages still to this day. The system did what it was supposed to do. A time-bomb of sorts was inserted into the system by the government!!!! Bush warned about this multiple times as president but Barney Frank told him to go to hell.(in so many words)
So.......the answer is more government regulation????????More government meddling into private transactions??????A Bank Tax???????
NO! Not over my broke and dying body.
Nope! Just switching to Plan B
Did The President FINALLY Wake Up? NO same plan just new speeches.