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2009-09-16 Economy
On historic day, Obama warns of financial 'collapse'
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Posted by Fred 2009-09-16 00:00|| || Front Page|| [11135 views ]  Top

#1  It's amazing how much Obama claims to know without having investigated much of anything. Here's a story from the early FDR administration about a Sicilian prosecutor who made Wall Street an offer it couldn't refuse: subpoenas.
The result was a relentless investigation, 12,000 pages of transcripts that laid bare abuses on Wall Street and failures of Washington to adequately regulate the nation's financial system. Pecora's efforts provided a basis for reforms that would alter Wall Street and maintain relative stability in the banking industry until the recent crisis. Unfortunately the article doesn't cite the laws passed as a result of Pecora's and other investigations, that were later repealed, followed by the recent crisis. I'm with Karl Denninger, who said yesterday: This is just more mealy-mouth BS.

I'll get impressed when I see indictments, clawbacks, honest balance sheets, the end of unsustainable housing lending by Fannie, Freddie and the FHA, a bill to reimpose Glass-Steagall, the enforcement of anti-trust laws already on the books and more.
Posted by Anguper Hupomosing9418 2009-09-16 00:15||   2009-09-16 00:15|| Front Page Top

#2 He's scared shitless, no sales, no taxes.
Posted by Redneck Jim 2009-09-16 00:28||   2009-09-16 00:28|| Front Page Top

#3 I was worried about the Bush debt, Regan principles could have bailed us out of that.

Obama made this debt.
He personally instituted this collapse.

He is suffocating us in all sectors, and all business owners tell me the same thing.
They are closing shop.
Posted by newc">newc  2009-09-16 00:42||   2009-09-16 00:42|| Front Page Top

#4 Move along, folks. No scare tactics here.
Posted by gorb 2009-09-16 03:54||   2009-09-16 03:54|| Front Page Top

#5 The crisis was caused by too much credit and hence too much credit risk relative to capital.

The solution is therefore to reduce the amount of credit that is made available.

Of course, no one wants to hear that a permanent reduction in the level of credit is the solution. So we get snakeoil instead.
Posted by phil_b 2009-09-16 04:10||   2009-09-16 04:10|| Front Page Top

#6 phil_b

EXACTLY!
Posted by Bright Pebbles 2009-09-16 07:36||   2009-09-16 07:36|| Front Page Top

#7 Obama blamed the current economic woes on both the US citizens

At LAST! "EVIL" Wall Street, BushHitler, Republicans, FoxNews, Doctors, Hospitals, Manufacturing, Insurance firms, Citizens!
Posted by Besoeker 2009-09-16 07:45||   2009-09-16 07:45|| Front Page Top

#8 We are alread IN financial collapse - we just haven't admitted it yet.
Posted by Glenmore 2009-09-16 08:01||   2009-09-16 08:01|| Front Page Top

#9 The mind-numbing hypocrisy and demogoguery of Obama blamed the current economic woes on both the US citizens for their indiscretion in seeking the so-called easy credit without considering the consequences and creditors "who did not always tell the truth."
is truly frightening to behold.

Not a word about he and Barney et.al. forced banks to make all those bad loans. And not a word about the wink, wink pledges from the Feds Frannie and Freddie about backing them up.

Is there a stronger word than despicable?
Posted by AlanC">AlanC  2009-09-16 09:03||   2009-09-16 09:03|| Front Page Top

#10 Is there a stronger word than despicable?

Not really, but the concept you seek is embodied by our government in its present form.
Posted by gorb 2009-09-16 10:51||   2009-09-16 10:51|| Front Page Top

#11 Actually the financial collpase occured on Bush's watch and his team was the one who initialited the bailouts and Obama took it over and it was needed. It's wallstreet's fault. Wake up!
Posted by No Politics 2009-09-16 11:12|| http://www.crisisofcredit.com/]">[http://www.crisisofcredit.com/]  2009-09-16 11:12|| Front Page Top

#12 Actually the financial collpase occured on Bush's watch and his team was the one who initialited the bailouts and Obama took it over and it was needed. It's wallstreet's fault. Wake up! http://www.crisisofcredit.com/
Posted by No Politics 2009-09-16 11:13|| http://www.crisisofcredit.com/]">[http://www.crisisofcredit.com/]  2009-09-16 11:13|| Front Page Top

#13 http://www.crisisofcredit.com/
Posted by Craick Panda5644 2009-09-16 11:14||   2009-09-16 11:14|| Front Page Top

#14 I dont agree with the commenter but that video was informative.
Posted by Craick Panda5644 2009-09-16 11:15||   2009-09-16 11:15|| Front Page Top

#15 It's wallstreet's fault. Wake up! http://www.crisisofcredit.com/
Posted by No Politics

No Politics: You were sent to the Burg to observe and report, NOT participate. Your statement is indefensible, and besides, we have whores to worry about this week. Please get back to observing and reporting.
Posted by ACORN Central 2009-09-16 11:43||   2009-09-16 11:43|| Front Page Top

#16 LOL!
Posted by Ebbang Uluque6305 2009-09-16 12:35||   2009-09-16 12:35|| Front Page Top

#17 Barry - "It's MY Prophecy and I'll do everything I can to make sure it comes TRUE!"
Posted by Mullah Richard 2009-09-16 14:03||   2009-09-16 14:03|| Front Page Top

#18 Damn, the trolls these days are absolutely pathetic. Murat would run circles around this "No Politics" and then steal his lunch.
Posted by Rex Mundi 2009-09-16 15:21||   2009-09-16 15:21|| Front Page Top

#19 Bloomberg: From a guy who's been there & done that: Paul Volcker, the former Federal Reserve chairman who’s an economic adviser to U.S. President Barack Obama, today renewed his call for a limit on the activities of banks that are considered “too big to fail.” Since January, Volcker has advocated that regulators should prohibit financial companies whose collapse would pose a risk to the economy -- those considered “too big to fail” -- from engaging in certain types of trading and investing activities
I see no evidence that 0 has been carrying out any of Volcker's advice.
Posted by Anguper Hupomosing9418 2009-09-16 16:04||   2009-09-16 16:04|| Front Page Top

#20 Bloomberg: From another guy who seems to know a lot about making money (as opposed to losing it), whatever Rantburgers may think of his politics, George Soros: The market “held up because it was effectively put on artificial life support” by government bailouts, said Soros, chairman of New York-based hedge fund Soros Fund Management, which has $24 billion under management. “[A credit default swap is] a toxic instrument, and if people want to forget it, I think they’ll regret it.”
And so far nothing from 0 about banning the d-d things, which was the law prior to the year 2000.
Posted by Anguper Hupomosing9418 2009-09-16 16:10||   2009-09-16 16:10|| Front Page Top

#21 Bloomberg: A collection of advice that 0 and his henchmen have ignored: Sec Treas Geithner asked Camden Fine, the president of the trade group Independent Community Bankers of America what should be done, on the day after he took office: Fine advised that behemoths such as Citigroup Inc. and Bank of America Corp. were a menace.

“They should be broken up and sold off,” Fine, 58, said he declared, as Geithner scribbled notes before thanking him for his time and ushering him out into the January chill.

The Treasury secretary didn’t follow through on Fine’s suggestion, just as he didn’t act on the advice of former Federal Reserve Chairman Paul A. Volcker, or Federal Deposit Insurance Corp. head Sheila C. Bair, or the dozens of economists and politicians who pressed the White House for measures that would limit the size or activities of U.S. banks...“Does anyone think it’s a coincidence that less than 10 years after they repealed Glass-Steagall, the financial markets collapsed?” said Fine of the community bankers group. He called current rules for banking a recipe for a “Molotov cocktail.”
All this ignored advice I've been citing is from people with way better track records than 0, Geithner or Larry Summers have.
Posted by Anguper Hupomosing9418 2009-09-16 16:27||   2009-09-16 16:27|| Front Page Top

#22 Soros is right because CDS allowed the true credit risks to be hidden behind apparently risk spreading swaps that were nothing more than a shell game.

And Buffet who played this shell game big time and is now paying out big time.
Posted by phil_b 2009-09-16 22:35||   2009-09-16 22:35|| Front Page Top

#23 We are alread IN financial collapse - we just haven't admitted it yet.

Yes, if complacency is all it will take to get us back to "standstill" then bring on the complacency. Faster please! Err, or not.
Posted by AzCat 2009-09-16 23:14||   2009-09-16 23:14|| Front Page Top

#24 The Wall Street Journal has a hilarious version of Ambrose Bierce's 'Devil's Dictionary' today: CREDIT-DEFAULT SWAP, n. loose translation from the original Latin "ubi mel ibi apes," or "where there's honey there are bees." 1. A complex financial instrument vital to the functioning of a modern economy in the way it spreads risk among consenting parties. (Greenspan, A., pre-Sept. 2008.) 2. A complex financial instrument that nearly destroyed modern capitalism (Greenspan, A., post-Sept. 2008)
Posted by Anguper Hupomosing9418 2009-09-16 23:42||   2009-09-16 23:42|| Front Page Top

23:59 Sherry
23:58 abu do you love
23:43 Woozle Uneter9007
23:42 Anguper Hupomosing9418
23:22 Sherry
23:15 Cornsilk Blondie
23:14 AzCat
22:59 Woozle Uneter9007
22:52 Frank G
22:44 Glenmore
22:39 Woozle Uneter9007
22:37 49 Pan
22:35 phil_b
22:30 Woozle Uneter9007
22:18 Woozle Uneter9007
22:13 Thing From Snowy Mountain
22:07 Anguper Hupomosing9418
22:06 phil_b
22:06 Woozle Uneter9007
21:55 Mike N.
21:49 JosephMendiola
21:42 Rambler in Virginia
21:31 lotp
21:31 lotp









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