Sunday, January 03, 2010

No regulations = new financial collapse

I strongly urge you to watch (or at least hear) this important interview with Dr. Robert Johnson, who articulates Obama's massive lost opportunity on financial re-regulation.

Johnson talks about making the ratings agencies -- the folks who gave Triple-A ratings to financial instruments based on crap loans -- into public utilities. Johnson says that this could lead to "problems." No doubt that's true, but to me they look like problems we can live with, especially when compared to what we have now.

At any rate, this is all a matter of belling the cat. Obama's narrow window of opportunity has closed, now that the inane "socialist" meme has taken root. Not for the first time in history, right-wing populists who pretend to hate the big bankers have actually made it easier for those bankers to screw us. The new financial regulations will do for the Wall Street fat cats what heath care reform has done for the insurance fat cats.

I disagree with Johnson on one point: This was not an issue of the "progressives" being unready. They had plenty of time. They had access to smart guys who favored temporary nationalization, or receivership, of the zombie banks.

The problem was that the "progressives" in power were not really progressive. Obama and his cronies were Chicago schoolers, in every sense of the word. Many of his media manipulators -- Moulitsas, Huffington, Aravosis, Sullivan -- were of a cognate quasi-libertarian stripe. The sitch we're in is the sitch they wanted.

Of course, a lot of genuine, well-meaning lefties were sucked in by the hype. No amount of pathetically obvious revisionism can blind us to the disgusting "freeper"-style tactics of the Obots who gave us this day. Thanks to the fiends and dupes who commandeered the Democratic party, the banks will continue to go unregulated, which means that a new financial collapse is coming -- and when it comes, the "left" will be saddled with responsibility for the disaster.

Throughout 2008, progressives refused to look at who was funding Obama. They refused to acknowledge his history of brazen lying. They demonized, harassed, threatened and libeled anyone who saw the man for what he really was. And they refused to understand one of the most basic facts of the political universe: Any politician who gets hosannas from Chris Matthews, Maureen Dowd, Charles Krauthammer, Arianna Huffington, Andrew Sullivan and all the other monsters who hated Gore must be pure shit.


Caro said...

Thanks for the link, Joseph!

Carolyn Kay

Anonymous said...

Lots of people think we should quit rehashing the past and move on. But if we do that we end up following the same people and making the same mistakes that got us in this mess.

mercurio55 said...

Amen Brother! You are f*cked...that's why I left the country, the sh*t hitting the fan at this end will be slightly less messy than there.......

Edgeoforever said...

100 million for a total unknown in 2007...By October 2008 he had gotten from Wall Street 3 times the amount W did in 2004...
Last night I was watching the ending of Doctor Who on BBCA. They kept saying "President Obama will make a speech on Chrismas about ending the recession (although a couple of homeless people did say "whatever he'll do, it won't help us). Ironically, UK, and all European countries that introduced some regulation last year are better off than us

Perry Logan said...

I first suspected the Democrats had been taken over by party traitors when I was at Democratic Underground, where the O-holes started calling anyone who dared to criticize The Lisping One a racist.

Only a party traitor--and an arrant pr*ck--would call another Democrat a racist. Try calling me a racist to my face and see what happens.

Roberta said...

Obama and his shills perpetrated a gigantic con game on the Democratic Party and all America. And we will all suffer the consequences for decades to come while the perpetrators get off scott free.

Too bad Barbara Tuchman is no longer with us. She could add another chapter to her marvelous book, The March of Folly, a book that chronicles four cases where rulers or governments pursue a foolish course of action despite all arguments to the contrary and all indications of impending disaster from those around them. Obama’s rise, and his inevitable fall, is a case study in such stupidity.

Anonymous said...

I'm glad you mentioned the wave of revisionism that has suddenly taken hold of many "so-called" progressive sites. The continuing excuses and explanations during this winter of disillusionment makes me want to gag. Those of us who saw through the con-game before the election [and during the primary] were called all manner of foul names, racist being the most popular.

So how many issues has Obama flipped on? How many opportunities lost or ignored or totally screwed up?

Gee, I've lost count. What a huge, freaking surprise. When a man stands for everything, he stands for nothing at all.

I rest my case.

Anonymous said...

Firstlu, you cant make the rating agencies into utilities cos it would institutionalise either mistakes or corruption. There is no substitute for individual judgement. You cant outlaw investment error - well not without outlawing capitalism.

Secondly everyone will forget that the banks remain on the public tit even when the government assistance is repaid. The banks are now seen as government guaranteed so they have an implicit subsidy. In the meantime they will screw their customers to assert their non-existent independance. Its just such a ridiculous absurdity.

I like it when Goldman Sachs says that they didnt need public money. Of course they did, which is why they converted from investment bank to bank holding company - so they could use the Fed Reserves facilities. If you catch anyone muttering this rubbish remind them of GS and MS's new status.

The whole system is bent. I still think that it is mainly a failure of imagination. These half wits - our "elites" didnt understand their own ponzi scheme and that it was about China above all. So when it failed they needed to be saved. We saved them cos our leaders couldnt imagine a world without their masters. Slaves without the imagination to run when their chains break! So instead we dig deep to keep the bankers our masters.

Corruptions or idiocy? I just cant work it out.

Dudes, this situation is an abomination and it will end in some kind of revolution. I just dont know what kind yet.


Zee said...

Another interesting article (linked below) on how the Dems are going to be blamed for the continuing economic doom...and how the hapless Zerobama misadministration is test-marketing bringing back the Bushie boogieman for the 2010 elections. Note the tidbit on how an Alabama "Dem" flipped to the GOP over the holidays...this is after he voted against financial regulation. This year has proven those of us right who foresaw that the agenda behind putting this Trojan Ass in the White House was to destroy the Dem brand....and apparently there were a few Trojan Ponies in the mix, too.

run_dmc said...

Great post. My only minor quibble is with the phrase "Obama's lost opportunity" to institute real financial regulation. This assumes he actually wanted to and then got sidetracked, etc. The whole intention in putting this nobody who'd never run a lemonade stand in his life and knew nothing about finance into the WH was so he could be rolled by bankers. As soon as I saw Rahm, Summers and Geithner installed - along with Gensler at the CFTC and various Goldman Sachs and other financial industry bankers and lobbyists - what the plan was all along became pretty damn clear.

Anonymous said...

I guess that the HillBuzz babes as Rush calls them were always good Democrats then?

I guess that most of the posters at NoQuarter and PUMAPAC aren't racist arseholes then?

You supported a candidate who attracted the very worst in politics and her remaining so called fan sites continue to prove that.

Especially, blogspammer Edge

Picture two racist? No of course not.

Joseph Cannon said...

Normally, I wouldn't let Mr. Anonymous Coward have a voice in these pages. But I thought that one of my readers might enjoy responding. It's hard to believe that deluded creatures like this still exist.

MrMike said...

Why bother with Mr.CDS Anonhole, Joe?
People like him aren't susceptible to reason and logic. The only thing is as they fade in irrelevance, sites like Koshole, TPM, Huffblo and Sullivan's will revert back to basement blogger status.

jackyt said...

If ignorance is bliss, then anonymous must be ecstatic.

Anonymous said...

Mr. Anon Coward reminds me of Hugo Chavez; accusing others of the very deeds he engages in. It's called projection.

History is already proving us correct. Not only were Hillary Dems 100% accurate in our assessment of the Chicago flim flam man, but the desperate revisionism of the 0bots in trying to portray us as the "villains" is futile. The 0bot Brownshirts forget (odd since they're supposed to be these so called geniuses) that everything that is recorded electronically remains so. EVERYTHING!
The voluminous material of hate and lies left by the Obama-Uber-Alles gang has guaranteed that history will remember them as the lowest hateful scum that divided the Democratic Party and gave the country George W. Bush's third term.

Anonymous said...

A) No president has ever had serious financial chops, possibly excepting JFK who had studied at the London School of Economics, iirc. Regular business experience (ala Truman's haberdashery shop) is not relevant experience. Reagan's BA in economics from Eureka College doesn't really count.

B) Even in a theoretical, unprecedented case of a new president coming into office with economic chops, it is far from clear that any past economics knowledge could really prepare someone for such a systemic collapse and provide knowledge of what should be done in this unique case. Obviously, a president would bring in the 'Wise Men,' and probably take the consensus position they produced.

C) Likely HRC would have had the same 'Wise Men' who are now the subject of complaint. Summers and Rahm, who were Secretary of Treasury and key presidential aide in the Clinton administration, respectively, WERE her husband's advisors, and the key architects of his later years in office, which were considered brilliant, and form the basis of his legacy. Even if you want to say it was more the prior Sec. Treasury Rubin (Goldman Sachs director) than Summers, that doesn't improve any such claim.


Zee said...

Here's someone who can better respond to Race Card Anonymous. It's Cinie on a tear. A must-read for anyone, actually:

Oh, and Anonymous? Thanks for proving my joking post to Joseph the other day when he spoke of why he supported McCain (tho couldn't pull the lever for him). I joked, "who is this also-ran you speak of?" Because the Obot Cult never speak of McCain. Never. You mind-snatched pOd people are so obsessed with Sarah Palin that you speak only of her, as if she ran alone, on the top of the ticket.

As for your beef with Edgeofforever...if that is your example of "racism" you are flat out crazy. You need a Hopium detox. First of all, she's reproducing a photo and and an excerpt from POLITICO. So if you have a problem with the picture being racist, take it up with them. Second, it is a story of two presidents reacting to two airplane incidents. If some of the presidents and/or would-be terrorists are black, how would that make a *picture* of them all evidence of racism? It's a current story, from multiple sites. It's not something "PUMAs" dreamt up! Finally, I can't even parse what you are attempting to say: "Picture two racist?" Um, huh?

Did you mean the picture of the four faces was "too racist?" Or did you mean face #2 of the four somehow proves the charge of racism. How? Let me guess....was it "darkened?"

Whichever way you mean it, you've only proven you're nuts. No one made the underwear bomber black. He just is. And it wasn't Edge's picture, was from Politico. Oopsie!
And you think *Palin* is "stupid?"