Monday, June 22, 2009

Consensus building, with permission

Obama is pounding the drum of financial reform. Yes sir! He’s going to show the crooks that ruined our economy a thing or two.

If they agree.

It’s called consensus building.

His cop is going to be the same enablers who held the door while their cronies looted the Treasury—the Fed.

The comedy team of Geithner & Summers gave us a blueprint for Obama’s planned reform in a Washington Post op ed.

Commenting on the op-ed, Henry C K Liu says, “[The] administration’s regulatory reform plan is generally viewed as having backed away, due to the political difficulties involved, from a more extensive structural overhaul…”

Once again, the ruling party gingerly creeps forward on hands and knees, being ever so careful not to rock the boat or to cause their patrons any undue stress. Congress wouldn’t stand for it; Geithner & Summers wouldn’t stand for it, and most importantly of all, Goldman Sachs wouldn’t allow it.

To Congress, corporatism is the goose that lays the golden egg. To the rest of us, it’s road kill. That’s why we’re shut out of the process.

The happy duo promises us that they will increase the capital reserve requirements for “the largest and most interconnected firms.”

“Not a problem,” their handlers tell them. "All we need do is revise our arcane mark-to-models and through the magic of second-rate mathematical manipulation, presto!, we have all the reserves we need to float another bubble.”

Reform is not about reform, it’s about spin and window dressing. Wall Street and the Beltway are locked in an intricate tango in which Wall Street may allow a little dry humping, but that is as far as it will go.

The important thing is to have this window dressing in place so it can be unveiled when the next financial crisis hits and private ruin is magically transformed into public ruin.

Obama is just too damn polite. FDR grabbed Wall Street by it short hairs; Obama is holding it hand. The only question is, how bad will it have to get before Obama goes for their groin?

That’s how you build consensus.


Cirze said...

Oh, how about "not anywhere close to bad enough" since they put him in office in order to blunt the public furor with the status quo?

And he's done a pretty good job for them so far.

The only question is, how bad will it have to get before Obama goes for their groin?


Case Wagenvoord said...

"Bad" could well be a complete social and economic meltdown.

Unknown said...

Case have you read Karl Denniger's Market Ticker? /
Some great stuff there

Case Wagenvoord said...

Thanks, Clensing Fire. There is, indeed, some good material on this site. I'll link to it when I have a chance.

Anonymous said...

longchamp, tiffany and co, tory burch outlet, louis vuitton, oakley sunglasses, ugg boots, polo ralph lauren outlet, kate spade outlet, christian louboutin outlet, ray ban sunglasses, nike free, michael kors, louis vuitton outlet, ray ban sunglasses, polo ralph lauren outlet, kate spade handbags, air max, nike roshe run, ray ban sunglasses, longchamp outlet, nike air max, louis vuitton, nike free, coach outlet, chanel handbags, oakley sunglasses, louboutin outlet, air jordan pas cher, nike outlet, replica watches, gucci outlet, replica watches, oakley sunglasses, louboutin pas cher, sac longchamp, prada handbags, nike air max, cheap oakley sunglasses, ugg boots, louboutin shoes, oakley sunglasses, louboutin, ralph lauren pas cher, burberry, prada outlet, uggs on sale, jordan shoes, longchamp outlet, tiffany jewelry, longchamp pas cher

Anonymous said...

ugg pas cher, pandora jewelry, canada goose uk, pandora charms, marc jacobs, swarovski crystal, juicy couture outlet, moncler, ugg,ugg australia,ugg italia, moncler, louis vuitton, thomas sabo, moncler, pandora jewelry, doudoune canada goose, pandora charms, moncler, canada goose, louis vuitton, ugg boots uk, replica watches, moncler, bottes ugg, louis vuitton, juicy couture outlet, swarovski, supra shoes, hollister, moncler outlet, canada goose outlet, sac louis vuitton pas cher, ugg,uggs,uggs canada, canada goose, canada goose outlet, louis vuitton, coach outlet, links of london, wedding dresses, moncler, canada goose, moncler, canada goose

Anonymous said...

ferragamo shoes, ghd, gucci, toms shoes, nfl jerseys, louboutin, soccer jerseys, mcm handbags, birkin bag, converse, nike air max, nike air max, chi flat iron, valentino shoes, p90x workout, mont blanc, hollister, montre pas cher, lululemon, vans shoes, north face outlet, bottega veneta, herve leger, ray ban, ralph lauren, reebok shoes, jimmy choo shoes, instyler, beats by dre, mac cosmetics, baseball bats, karen millen, wedding dresses, babyliss, oakley, soccer shoes, new balance, celine handbags, insanity workout, hollister, vans, lancel, abercrombie and fitch, hollister, asics running shoes, longchamp, timberland boots, nike roshe, north face outlet, converse outlet