Did The President FINALLY Wake Up?

The Market Ticker ^ | Thursday, January 21. 2010 | Karl Denniger

[AniGrrl]

I'm not sure I believe what I'm hearing on CNBC coming out of The President's mouth.

Is he really listening to Paul Volcker? Finally?

Here's what I heard that I liked - a lot.

1. Limit the Scope - The President and his economic team will work with Congress to ensure that no bank or financial institution that contains a bank will own, invest in or sponsor a hedge fund or a private equity fund, or proprietary trading operations unrelated to serving customers for its own profit.

2. Limit the Size - The President also announced a new proposal to limit the consolidation of our financial sector. The President’s proposal will place broader limits on the excessive growth of the market share of liabilities at the largest financial firms, to supplement existing caps on the market share of deposits.

To the Citizens of this nation: You have just been given the MEANS to stop the crap that got us into this economic mess.

GET OFF YOUR ASS, PHONE, FAX AND PROTEST IN PERSON DEMANDING ALL OF THE ABOVE HAPPEN RIGHT NOW - OR SHUT THE HELL UP NOW AND FOREVER MORE ABOUT THE ECONOMY SUCKING!

[AniGrrl]

Freepers, what do you think of this? Should we be supporting these actions. It may be politically-motivated on Obama's part, but they also seem to be what's needed to get back on track. Of course, we need the banksters corrupt hands out of the taxpayer till, too.

[AniGrrl]

I apologize, my excerpt didn’t come out quite right. Grrr.

[SoFloFreeper]

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.

[Daveinyork]

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.

[La Lydia]

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.

[TexasFreeper2009]

No business, regardless of the industry, should be allowed to become SO big that government is FORCED to bail them out or risk a global financial catastrophe.

[bray]

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

[bergmeid]

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.

[willgolfforfood]

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.

[ridesthemiles]

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.

[70th Division]

Obama is an Ideologue. He is a Marxist. He is trying to ruin the country. When health care failed he moved to ruining the banks. He needs to be impeached

[Southack]

The banks didn’t cause the downturn. Focusing on them won’t be the solution.

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.

[Bobalu]

[bassmaner]

Zero floated this pseudo-populist (ie. Marxist) crap yesterday knowing full well that bank stocks would tank and the Dow would take a nose dive. This allows his SRM buddies to polish their spin about the market tanking because MA voters elected a GOPer, thus killing Deathcare.

"Never let a good crisis go to waste ..."

[Salgak]

Taquiya, Obama-style.

[MGMSwordsman]

I think you guys are all off base. Obama never has been in “denial” about any of the seemingly suicidal actions he has taken as Prez. Everything he has done has been planned and ordered by those who control him. I think he is probably a long range Soviet mole who was groomed from birth to get in a position to boost the destruction of our country from within. That is the only thing that makes sense.

The Soviets probably had several of these individuals groomed, and Barry Soetero is the one that got there.

[I see my hands]

"we need the banksters corrupt hands out of the taxpayer till"

Who do you think pays taxes? Big sin to take back the money they created. Why, there might not be enough left over to get you your stimulus check.

[Red Badger]

No business, regardless of the industry, should be allowed to become SO big that government is FORCED to bail them out or risk a global financial catastrophe.

BIG was not the problem, meddling in market forces by dems in Congress was. These so called BIG companies were forced under penalty of law to make loans to people who they knew could not re-pay. The house of cards finally fell when Freddie and Fannie, both controlled by dems, were so over filled with bad loans that they could not sell them off over seas any more.................The sewer backed up and the toilet overflowed.................

[YankeeReb]

I don't trust ANYTHING Soetoro says. If there's one thing these progressives are good at it's changing their outer appearance. Where's the talk about eliminating CRA? What about dropping the talk about bank fees to bail out GM and the unions? Why isn't Barney's Frank being questioned about his role in Fannie and Freddie?

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.

[boomop1]

The sneaky bastard (and he is one) is intent on doing the opposite of what he says.