Defenders of Power and Wealth

by: Mike Lux

Fri Apr 23, 2010 at 12:09

Being the bleeding heart liberal that I am, my heart is really bleeding right now for all the poor oppressed Wall Street mega-bankers who are being blamed (with merely the overwhelming preponderance of evidence) for defrauding their clients and destroying our economy. I am so glad that they, and their sturdy defenders like the group of Republican Congresspeople led by Darrell Issa, are rising up and saying, "We aren't going to take it anymore." I think everyone deserves their day in court (especially these guys, preferably criminal court) and a chance to be heard, and I think everyone deserves a chance to defend themselves, no matter how low-life, greedy, scummy, and immoral they may actually be.

So I'm glad that Goldman Sachs CEO Lloyd Blankfein is doing a lot of complaining these days, and telling people that going against his company is "hurting America." I'm delighted that so many Republicans Congresspeople are still willing to defend Lloyd and his bank executive colleagues- after all, they only control assets worth 63% of the American GDP. I'm pleased that Republican Senators are showing absolutely no shame or embarrassment in meeting with big bank lobbyists behind close doors to plot strategy, and are still happily taking their money. Good for them.

In fact, some of the most blatant financial rip-off artists are even contemplating running for office. Jeff Greene, who CNBC described as "the man who shorted subprime" and became a billionaire in the process of helping wreck the economy, is actually talking about running for Senate in Florida. You have to admire the courage of someone as blatantly sleazy as Greene for considering getting into the political arena after all the damage his financial scheming did to the Florida economy. I hope more of these courageous financial fraud kings enter the political fray, because then their behavior will be front and center in the 2010 elections. God bless them everyone.

The defenders of wealth and power are fighting back because, well, they kind of have to. Their reputations are in the toilet, and their massive political and economic power is being threatened. Legislation like the Brown-Kaufman bill to break up the banks is gaining a head of steam, which would be a profoundly important shift in the banking industry, and dramatically rein in their market power, their political power, and the impact on our overall economy if they failed, making bailouts unneeded in the future.

Readers of mine know I love my history, and this financial reform debate is reminding me increasingly of the biggest debates in American history of banking issues: the Jackson-Biddle battle in the 1830s, the populists and progressive attacks on big banks around the turn of the century a century ago, and FDR's New Deal finally reining in the banks that caused the Great Depression. Simon Johnson noticed the connection as well: check out this great post by him this morning.

Mike Lux :: Defenders of Power and Wealth

Tags: Brown-Kaufman Bill, Darrell Issa, financial reform, Goldman Sachs, Lloyd Blankfein, (All Tags)

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Defenders of Power and Wealth | 2 comments

It's Too Bad That Right In The Middle Of This Looming Fight, Obama's Still Saying "Can't We All Just Get Along?" (4.00 / 5)

as in this:

As I said on this stage two years ago, I believe in the power of the free market. I believe in a strong financial sector that helps people to raise capital and get loans and invest their savings. That's part of what has made America what it is.

and

I'm here because I believe that these reforms are, in the end, not only in the best interest of our country, but in the best interest of the financial sector.

As Glen Ford said in his Black Agenda Radio commentary this week:

the Democrats' pitiful play-acting at regulation amounts to little more than asking Wall Street to use better table manners as they eat the rest of us alive.

One can argue that some congressional Dems are trying to do more--even though reinstating Glass-Steagall is apparently off the table. But hearing passages like the above from Obama, while foreclosures keep mounting along with Wall Street bonuses, it's had to think that what he's asking for is really anything more than better table manners, just like Glen Ford said.

"You know what they say -- those of us who fail history... doomed to repeat it in summer school." -- Buffy The Vampire Slayer, Season 6, Episode 3

by: Paul Rosenberg @ Fri Apr 23, 2010 at 16:47:06 PM UTC

The WH is irredeemably conflicted on this issue, as is congress. (4.00 / 1)

On the one hand, they know very well only real reforms of the type they really don't like will allow this economy to turn around. On the other, being essentially a subsidiary of Goldman Sachs, they can't possibly support real reforms because that might impinge on their earnings from Wall Street later.

(Tangentially, how nice of the Thugs to publicly take up the mantle of being Wall Street's bitches... it distracts people very nicely from the WH connections to WS, eh?)

The House bill is a sad piece of legislation. All the good stuff was stripped out immediately. The Senate bill is only slightly better, but it still gives Treasury and the Fed unlimited power to engage in bailouts solely at their discretion and without any interference from congress. THIS ISN'T REFORM. THIS IS A LICENSE TO LOOT THE TREASURY.

It was most heartening to see Brown and Kaufman put their proposal out there. But let's be realistic here. What are the odds this ever sees the presidential pen?

Practically none, as Dodd, Frank, Reid, Pelosi and Barack Obama will all oppose it--that's what they're paid for, apparently. Why, it would interfere with the magic of the marketplace and we can't have that now, can we? Where would all those illicit billions in bonuses come from if these parasites can't rape the global economy? Where will all the kickbacks to pols come from? Eek gad, man!

Obama's speech at Cooper Union should inform everyone as to who his real friends are: hint, it ain't us. When the President of these United States goes hat in hand to Wall Street, essentially begging them to play nice over a bill that doesn't really reform anything--once you factor in all the massive loopholes--that should really concern everyone.

He knows how to make the right arguments, which he showed in his remarks about derivatives. But where's the action?

I would love to be able to take these folks rhetoric seriously for a change. But it's kind of hard to when you see all these words, many of which are beautifully crafted, all going just to sell crap legislation posing as "change."

But one thing is certain: The economy cannot fully recover until the banks are restrained, finances deeply reformed and the financial sector has been forcefully shrunken by a solid 50% or more.

The top five TARP banks account for 40% of corporate profits and controls assets equal to 60% GDP. This is either a monopoly, or a cartel of smaller monopolies. Either way, this is simply not tenable for the future of this economy or our political system. If TBTF isn't ended, we're all going to revisit this issue within a few years and it will probably be worse next time, for a lot of reasons.

You know, this really should be progressives' strongest issue. It goes the core of everything progressive. But we're going to sit here and celebrate the Do Nothing Kabuki instead of making real demands?

Someone please tell me why the citizens of this country are supposed to sit back and enjoy the Kabuki when their rational self-interests are being flushed down the toilet?

"More than any other time in history, mankind faces a crossroads. One path leads to despair and utter hopelessness. The other, to total extinction. Let us pray we have the wisdom to choose correctly." -Woody Allen, My Speech to the Graduates

by: Emocrat @ Fri Apr 23, 2010 at 17:48:26 PM UTC