Part of President Obama’s speech today in Osawatomie, Kansas:
"Finally, a strong middle class can only exist in an economy where everyone plays by the same rules, from Wall Street to Main Street. (Applause.) As infuriating as it was for all of us, we rescued our major banks
from collapse, not only because a full-blown financial meltdown would have sent us into a second Depression, but because we need a strong, healthy financial sector in this country.
"But part of the deal was that we wouldn’t go back to business as usual. And that’s why last year we put in place new rules of the road that refocus the financial sector on what should be their core purpose: getting capital to the entrepreneurs with the best ideas, and financing millions of families who want to buy a home or send their kids to college.
"Now, we’re not all the way there yet, and the banks are fighting us every inch of the way. But already, some of these reforms are being implemented.
"If you’re a big bank or risky financial institution, you now have to write out a "living will" that details exactly how you’ll pay the bills if you fail, so that taxpayers are never again on the hook for Wall Street’s mistakes. (Applause.)
"There are also limits on the size of banks and new abilities for regulators to dismantle a firm that is going under. The new law bans banks from making risky bets with their customers’ deposits, and it takes away big bonuses and paydays from failed CEOs, while giving shareholders a say on executive salaries.
"This is the law that we passed. We are in the process of implementing it now. All of this is being put in place as we speak. Now, unless you’re a financial institution whose business model is built on breaking the law, cheating consumers and making risky bets that could damage the entire economy, you should have nothing to fear from these new rules."
The problem with this speech in general, and the banking commentary in particular, is that the Obama administration came to office because of a banking crisis. The economy was always the make-or-break accomplishment of this administration – and it had a majority of the House and Senate in 2009. What did it do about banking? It shanked its opportunity to re-institute stability and sensible regulation, substituting instead a scarecrow of showboating under-regulation, the Dodd-Frank bill. Details are explained in this blog at the October 16, 2011 daily quiddity blog posting, http://dailyquiddity.blogspot.com/2011/10/what-occupy-wall-street-needs-to-know.html .
When Obama’s party held both the House and Senate in 2009, it failed to come up with a health reform bill. Obama backed off and distanced himself from the writing of the legislation. Into this power vacuum the lobbyists themselves put together a bill with congressional support. After months of inane wrangling, and the White House keeping its distance, it was passed in March of 2010. Take a look at the link (below) to an actual color diagram of the final legislation – this is an administrative nightmare that will cost a great deal and benefit only hospital administrators. Link:
http://reichert.house.gov/UploadedFiles/Health_Care_Overhaul_Packet.pdf . There is also the small question of the constitutionality of this legislation, which the Supreme Court will decide this Spring. Think of it – a President who taught constitutional law at the University of Chicago pushes for and signs legislation that may well get thrown out as unconstitutional.
Another great accomplishment was supposed to be reversing the "global warming" theory with cap and trade legislation. Thought the Democrats held both houses of Congress, Obama got absolutely nothing at all through those Democratically-controlled bodies for his signature -- nothing.
The inability of Obama to follow-through, to offer concise, targeted legislation to solve the nation’s problems, makes a mockery of his speech in which a rosy partnership is deified between government regulation, private business, and working Americans. Obama can’t and won’t do anything effective wheresoever his core support might be offended, therefore "he deserves a second term." That is the logic of the argument made today in Osawatomie.
On the other hand, a fairly vigorous defense of Obama’s speech is offered at: http://immasmartypants.blogspot.com/2011/12/president-obama-in-osawatomie-we-shall.html
"Finally, a strong middle class can only exist in an economy where everyone plays by the same rules, from Wall Street to Main Street. (Applause.) As infuriating as it was for all of us, we rescued our major banks
from collapse, not only because a full-blown financial meltdown would have sent us into a second Depression, but because we need a strong, healthy financial sector in this country.
"But part of the deal was that we wouldn’t go back to business as usual. And that’s why last year we put in place new rules of the road that refocus the financial sector on what should be their core purpose: getting capital to the entrepreneurs with the best ideas, and financing millions of families who want to buy a home or send their kids to college.
"Now, we’re not all the way there yet, and the banks are fighting us every inch of the way. But already, some of these reforms are being implemented.
"If you’re a big bank or risky financial institution, you now have to write out a "living will" that details exactly how you’ll pay the bills if you fail, so that taxpayers are never again on the hook for Wall Street’s mistakes. (Applause.)
"There are also limits on the size of banks and new abilities for regulators to dismantle a firm that is going under. The new law bans banks from making risky bets with their customers’ deposits, and it takes away big bonuses and paydays from failed CEOs, while giving shareholders a say on executive salaries.
"This is the law that we passed. We are in the process of implementing it now. All of this is being put in place as we speak. Now, unless you’re a financial institution whose business model is built on breaking the law, cheating consumers and making risky bets that could damage the entire economy, you should have nothing to fear from these new rules."
- Barack Obama, speaking in Osawatomie, Kansas, on December xx, 2011 (the text available at http://blogs.courier-journal.com/politics/2011/12/06/obama-u-s-cant-return-to-youre-on-your-own-economics/ )
The problem with this speech in general, and the banking commentary in particular, is that the Obama administration came to office because of a banking crisis. The economy was always the make-or-break accomplishment of this administration – and it had a majority of the House and Senate in 2009. What did it do about banking? It shanked its opportunity to re-institute stability and sensible regulation, substituting instead a scarecrow of showboating under-regulation, the Dodd-Frank bill. Details are explained in this blog at the October 16, 2011 daily quiddity blog posting, http://dailyquiddity.blogspot.com/2011/10/what-occupy-wall-street-needs-to-know.html .
When Obama’s party held both the House and Senate in 2009, it failed to come up with a health reform bill. Obama backed off and distanced himself from the writing of the legislation. Into this power vacuum the lobbyists themselves put together a bill with congressional support. After months of inane wrangling, and the White House keeping its distance, it was passed in March of 2010. Take a look at the link (below) to an actual color diagram of the final legislation – this is an administrative nightmare that will cost a great deal and benefit only hospital administrators. Link:
http://reichert.house.gov/UploadedFiles/Health_Care_Overhaul_Packet.pdf . There is also the small question of the constitutionality of this legislation, which the Supreme Court will decide this Spring. Think of it – a President who taught constitutional law at the University of Chicago pushes for and signs legislation that may well get thrown out as unconstitutional.
Another great accomplishment was supposed to be reversing the "global warming" theory with cap and trade legislation. Thought the Democrats held both houses of Congress, Obama got absolutely nothing at all through those Democratically-controlled bodies for his signature -- nothing.
The inability of Obama to follow-through, to offer concise, targeted legislation to solve the nation’s problems, makes a mockery of his speech in which a rosy partnership is deified between government regulation, private business, and working Americans. Obama can’t and won’t do anything effective wheresoever his core support might be offended, therefore "he deserves a second term." That is the logic of the argument made today in Osawatomie.
On the other hand, a fairly vigorous defense of Obama’s speech is offered at: http://immasmartypants.blogspot.com/2011/12/president-obama-in-osawatomie-we-shall.html
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