Obama talks tough with bankers on re-regulation, but the right-wing denialism runs deep
Today President Obama had a meeting with a group of leading bankers -- CEOs from firms like Bank of America, J.P. Morgan Chase, and Goldman Sachs -- to talk about the need for banks to start getting the money that's going into banks' reserves right now start flowing into the economy in the form of lending activity.
But Obama also talked about the bigger picture -- namely, the absolute need to reinstate many of the financial-sector regulations that were torn down in the past decade and more, which led to the economic disaster we're now trying to recover from:
We also discussed the need to pass meaningful financial reform that will protect American consumers from exploitation and American -- the American economy from another financial crisis of the kind which we just came out of.
I noted the resistance of many of the financial sectors to these reforms -- the industry has lobbied vigorously against some of them -- some of these reforms on Capitol Hill. So I made it clear that it is both in the country's interest -- and ultimately, in the financial industry's interest -- to have updated rules of the road to prevent abuse and excess. Short-term gains are of little value to our banks if they lead to long-term chaos in the economy.
And I made very clear that I have no intention of letting their lobbyists thwart reforms necessary to protect the American people. If they wish to fight common-sense consumer protections, that's a fight I'm more than willing to have.
The way I see it, having recovered with the help of the American government and the American taxpayers, our banks now have a greater obligation to the goal of a wider recovery, a more stable system, and more broadly shared prosperity.
So I urged them to work with us in Congress to finish the job of reforming our financial system to bring transparency and accountability to the financial markets; to ensure that the failure of one bank or financial institution won't spread throughout the entire system, and to help protect consumers from misleading and dishonest practices with products like credit and debit cards, with mortgages and auto and payday loans.
Now, I should note that around the table all the financial industry executives said they supported financial regulatory reform. The problem is there's a big gap between what I'm hearing here in the White House and the activities of lobbyists on behalf of these institutions or associations of which they're a member up on Capitol Hill. I urged them to close that gap, and they assured me that they would make every effort to do so.
In the end, my interest isn't in vilifying any one person or institution or industry; it's not to dictate to them or micromanage their compensation practices to ensure that consumers and -- my job is to ensure that consumers and the larger economy are protected from risky speculation and predatory practices, that credit is flowing, that businesses can grow, and jobs are once again being created at the pace we need.
Susie already pointed out the latest Paul Krugman column on this very subject, complete with a history lesson:
America emerged from the Great Depression with a tightly regulated banking system. The regulations worked: the nation was spared major financial crises for almost four decades after World War II. But as the memory of the Depression faded, bankers began to chafe at the restrictions they faced. And politicians, increasingly under the influence of free-market ideology, showed a growing willingness to give bankers what they wanted.
The first big wave of deregulation took place under Ronald Reagan — and quickly led to disaster, in the form of the savings-and-loan crisis of the 1980s. Taxpayers ended up paying more than 2 percent of G.D.P., the equivalent of around $300 billion today, to clean up the mess.
But the proponents of deregulation were undaunted, and in the decade leading up to the current crisis politicians in both parties bought into the notion that New Deal-era restrictions on bankers were nothing but pointless red tape. In a memorable 2003 incident, top bank regulators staged a photo-op in which they used garden shears and a chainsaw to cut up stacks of paper representing regulations.
And the bankers — liberated both by legislation that removed traditional restrictions and by the hands-off attitude of regulators who didn’t believe in regulation — responded by dramatically loosening lending standards. The result was a credit boom and a monstrous real estate bubble, followed by the worst economic slump since the Great Depression. Ironically, the effort to contain the crisis required government intervention on a much larger scale than would have been needed to prevent the crisis in the first place: government rescues of troubled institutions, large-scale lending by the Federal Reserve to the private sector, and so on.
But the financial sector -- and their friends in the Republican Party and the conservative movement -- are in complete and utter denial about this, as Krugman went on to explore vividly. Apparently, they're willing to completely wreck the economy all over again just for the sake of hanging onto one of the remaining scraps of conservative dogma -- namely, that deregulation is innately good, because government is innately bad.
The fact is that the financial sector, particularly these big banks, have been flooding the Hill with lobbyists working hard to knock down any attempts to reinstate post-Depression regulations. Just ask Rep. Peter DeFazio, who is trying get the Glass-Steagall Act reinstated.
But because it is so intellectually and ethically bankrupt and so desperate to retain some semblance of power, the American Right is completely in the throes of denialism, which is best defined as "the employment of rhetorical tactics to give the appearance of argument or legitimate debate, when in actuality there is none."
So we get nonsense about the Community Reinvestment Act and how lazy shiftless minorities were the reasons for the Bush Recession.
At some point, the right-wing obfuscation has to stop. You'd think they'd realize it's in their own economic self-interest to stop. But that's like expecting a scorpion not to sting a dog on whose back it's crossing a river.
They still believe that deregulation and all their right-wing policies work. No matter how bad our economy fails they will look for people to blame before ever accepting responsibility for their role. The "conservative movement" is rotten at the roots.
But the financial sector -- and their friends in the Republican Party and the conservative movement -- are in complete and utter denial about this, as Krugman went on to explore vividly.
It is good that you point this out. But we must remember that the average Americans who vote for Republicans are responsible when the policies of their party promote corruption and risky dealings on Wall Street.
When will we address the people who put Republicans in office to begin with? The way the GOP does business: all its lies, the use of propaganda, race baiting, swiftboating and obstructionism are a reflection of the GOP base.
You cannot change the Republican party if you do not change the attitudes, values and internal evil that is inherent in those who subscribe to the conservative ideology.
The Republican party is a symptom of a larger disease in our culture and society. It can and should be addressed with the appropriate level of disregard.
Eventually America is going to have to move on without the so-called "conservative movement." Or we could continue to act as if collaborating with criminals will ever lead to a better world. It surely won't.
David, please take note tonight about what Beck says about women and their utertus and the government. The bastard stepped way over the line on this subject and I hope someone calls him to task. All women should! Of all the shit he has ever said, this in my opinion was right up there with the worst.
Say what you mean. Mean what you say. But don't say it mean.
How many of these right-wing icons have adopted children of their own? Republican members of Congress?
Because a Canadian suggested in an editorial or something that we might think about population control regarding the environment, Beck went all batshit crazy and said the women who were for choice should be raising hell about population control. He said women who have always said they wanted the government out of their uterus were just talking about the US govt and perhaps they just wanted another sort of government in their uterus. He even went so far as to tell his audience that he himself did not have a uterus. He thought it was funny to say that. No it wasn't, it made him look like a total idiot.
If he wants to talk about sexual organs then why not talk about some that he might actually have like a dick as small as his freaking brain.
And to top it all off, Beck had Orrin Hatch on his show defending Lieberman. I hope Orrin likes his new home with the tea baggers.
Say what you mean. Mean what you say. But don't say it mean.
Never content with past performances Beck strives to top himself time and again!!
When will government of the people, by the politicians, for the corporations perish from this Earth?
Not soon enough!
.
Lower the retirement age.
"Obama talks tough"
Yeah he's reeeeally good at the "talking tough" part.
When will the Left (especially the bumper-sticker crowd) wake up and smell the bamboozle?
"But while they prate of economic laws, men and women are starving. We must lay hold of the fact that economic laws are not made by nature. They are made by human beings."
-Franklin D. Roosevelt
"I can't keep doing this on my own with these...people."
Someone should tell the Prez that talking tough only works on youtube, not in OUR crumbling economy.
NOBODY 2012
Did he have his fingers crossed? Did he check to see if his nose was growing? Talk is cheap. As D.O.A. said on one of their albums: Talk -action =zero.
http://en.wikipedia.org/wiki/D.O.A._%28band%29
And Obama announced the US would impose a 50% tax on all bonuses in excess of $50,000 .. just like the UK and French govt have imposed on the banksters there..
..
.. oh?
.. he didn't?
..
.. sorry!
When will government of the people, by the politicians, for the corporations perish from this Earth?
Not soon enough!
...and he also just announced he was for a robust public option and would veto any bill that didn't contain one.
Huh? He supports the Baucus bill, Olympia Snowe's trigger, and Lieberman's death of the Medicare buy in? Never mind!
"We are what we pretend to be, so we must be careful what we pretend to be."
-Kurt Vonnegut
"I can't keep doing this on my own with these...people."
You are peddling propaganda.
It is not just the Right, the entire government from Barney Frank to Obama himself are captured by the Wall Street crooks posing as bankers.
The Banksters lost trillions through massive fraud in the origination and distribution of subprime mortgages cobbled into CDOs and fraudulently overrated by the Rating Agencies whom they paid.
This was a massive criminal enterprise.
Janet Tavakoli with Brian Lamb/CSPAN here
Instead of investigating and prosecuting them where indicated the Paulson/Bernanke/Obama/Geithner Team have handed over trillions of our money.
TARP was only the tip of the iceberg.
This is pure PR by Obama following fake regulation and fake reform.
I am not alone.
Yves Smith:
Read on here
The Banksters have the best President they can buy, and Congress too.
statusquObama, change you can only pretend in
When will everyone wake up and realize they are being played? Right left, coservative, liberal, it's all just like a pro wrestling match. Obama and the Democrats, the left, the liberals, are going to put back the regulation and crack down on the banker and clean up the mess made by the right? Please! It was Larry Summers, who is in Obama's cabinet now, and Robert Rubin of the Clinton administration that got rid of the regulations that set up the current mess in the first place. They are all just puppets of the banksters, liberal or conservative.
[Deleted]
Deleted, funny I didn't find that much wrong with it, except as noted.
[Aside from it being off topic, as was your reply, the guy signs up drops an inflammatory comment or two in 10 minutes, then never returns.
I wonder what his ulterior motive is [/snark].
We have open threads for other topic discussions. Feel free to discuss them there-Sitemonitor]
statusquObama, change you can only pretend in
But, did he....REALLY? Did he really talk tough? I'm beginning to believe that Obamas' Administration is just a lot of smoke and no fire. I believe the door was closed on this meeting.
Government + the Federal Reserve = organized crime
Sure they oppose regulation. But Dems have large majorities and public opinion on their side, yet still no regulations.
But it's "right-wing denialism" that's the problem?
Corruption favors the wealthy.
with a group of leading bankers. Here's how it went:
"Bwahahahahahahahahahahahahaha!!!" *high fives all around*
NOBODY 2012
'terrorist fist bumps' as well.
me-oww!
and trying to shame the shameless is a waste of time.
You could have gotten real strong regulation through on the tops of the outrage at the banks in the spring. You Mister Obama choose not to, if regulation fails it is your fault Obama because you refused to take the chances you were given. There were several headline in the late winter spring about the banks and there Bonus and misuse of bail out funds and everything else. Everyone said it was the perfect time to push regulation yet very little almost nothing from Obama and the democrats. Months later when many of the people in this country have gotten desensitized to the bloated corruption that is the "to big to fail" is putting you at a disadvantage and honestly you have to know this.
"But that's like expecting a scorpion not to sting a dog on whose back it's crossing a river."
It wasn't a dog, it was a swan. Whoever told you that parable told it to you incorrectly.
still the same story....
Corruption favors the wealthy.
but it is the tough talking sitting president who opposes the restoration of Glass-Stegall.
When blankfein stood him up today saying the fogbank ate his airplane, 'the fatcats' showed him a thing or two.
Blaming things on underlings isn't flying with me any more.
leiberman balks on health care and rahm storms in to dick whip harry reid. rahm is there because the President WANTS him there.
Face it, this President is more bluedog than Clinton. I have given up on the self delusion that he is playing 3D chess and everything is going to be all right.
It is barney frank and that Bean woman from chicago that shot holes you can drive a derivitive truck through in this ALL NEW regulation reform, that lets 8000 of the 8200 banks slide under the trading radar.
Sure, the republicans are dumb crackers, but the democrats are total tertiary syphlitic whores who have sold us out. They are going to loose big time next year. This economy is going to continue to suck, the banksters are going to continue to borrow money at 0% and speculate and 'invest' with and not share the wealth. The reason barry wants them to loosen up is to stave off the millions of pissed off people, it isn't just credit card charges, these guys are looting the treasury and making risk free bets with it.
Our tough talking president has never said anything about criminal accountability for driving the economy of the world into the dumper, in his saturday address he said abuses 'are in the past', just like the warcrimes bushco committed.
Great Post!
*stretch*
wha! anudder speeeeech?
*stretch*
back to bed.
Some stuff you can't make up!
Guys, I think we have truly missed calling out Obama's banking policy for what it is; trickle down economics. He gave a bunch of money to the top rich banks/people and asked that they spend/loan out that money and then that would trickle down wealth to the rest of us, which it didn't. So now he holds a big fancy meeting with these banksters and begs them to play nice and tells them to not flaunt their thievery because the rabble are getting upset. I am really fed up with Obama already. It's one thing to not be doing exactly what i think is right but he has just totally turned his back on us and put in the earplugs.
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