Obama escalates his War on Wall Street

January 21, 2010

Obama’s plan to limit risky activities at big banks is more about forcing Republicans to take tough votes than preventing another credit meltdown.The Volcker Plan was already rejected by the WH econ team (Summers, Geithner) and this is being pushed by the political team (Rahmbo, Axelrod) in the wake of the Massachusetts Meltdown. (In fact, this may help tamp down pressure from congressional Dems to dump the econ team.)

The WH can’t trumpet the economy, can’t trumpet healthcare, so Plan C is to go after Wall Street and make the GOP look like its best friend. Who cares that some of the worst problem children of the financial crisis were relatively small and undiversified? Wasn’t it regulator pushing for Wells Fargo to absorb Wachovia, and BofA to absorb Merrill? But I think the Dems will be surprised at how many GOPers might go along with this, starting with John McCain who has already advocated the return of Glass Steagall. But he will be far from the only one.

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Posted by The First Good News in a Long Time – Obama Takes on Banks | Report as abusive

Maybe I don’t really understand what Glass Steagall was all about, but I’m pretty sure I understand that we didn’t have a meltdown as humongous as 2008 when it was in effect. And I also wonder if 2001 wasn’t also partially a result of it not being in place.

I’m a big free-market guy, but it sure seems to me that doing away with that act was a factor in the toxic mix of 2008. It certainly didn’t start the whole mess. The government did that. Thanks Barney, Chris and Franklin. But letting the riverboat gamblers get their greedy hands on mom and pop’s savings sure had something to do with it.

Gramm made a mistake, and it hurt the country.

I’m not with the idiot in the White House on much, but this is one situation where he has a point. Of course, he couldn’t care less about helping the country. He is only playing his class warfare games because his pants have been pulled down on every other idiotic Marxist scheme he has tried so far.

Posted by proreason | Report as abusive