Punching Stupid and Evil in the Face Since 1986!

"We are on strike, we the men of the mind. We are on strike against self-immolation. We are on strike against the creed of unearned rewards and unrewarded duties."-John Galt

Wednesday, July 21, 2010

Dear Wall Street: I love you so much! XOXO Obama

I cannot for the life of me figure out why we continually see this hammering of the GOP's love affair with Wall Street. The latest financial bill to come out of Washington-which the Republicans opposed and the Democrats french kissed-does nothing but make-love to every big Wall Street firm and punish main street with a little S&M once again.

While President Obama pushes the virtues of this history making legislation, it is important to note a few truths about this bill. First off, the major players in the housing crunch and subsequent economy crisis-Fannie and Freddy-are not included in this legislation. Not only are they not included, but lenders are being required once again to meet certain minority criteria for lending to folks who likely cannot meet real requirements for borrowing. This means average, everyday Americans will receive no credit because the markets have tightened up to the point that banks aren't lending money to main street, and those who are not credit worthy will once again be buying homes they cannot afford.

Secondarily, in the Presidents speech he talks about no more taxpayer funded bailouts-which is a total lie. First off, you have the permanent bailout fund or as they like to call it the "Orderly Resolution Fund". This fund will be financed by all players in the banking and finance industry, big or small, and will used to dissolve companies deemed 'too big to fail' by the federal government. Well I've got news for the President, companies pay taxes too, the only thing you have accomplished in setting up this fund is a permanent slush fund to be used by the President and Congress at will, with no oversight, on companies they decide must be dismantled. Basically the industry can now pay to be nationalized, at will, by their government.

Finally, this bill does nothing to actually regulate and control the ever elusive derivatives market. This is another give away to Wall Street; huge companies and traders didn't want the additional burden and sunlight of having to disclose the actual value of what they are trading, claiming it would be unnecessarily burdensome. Aww, poor, sad, derivatives-so another major player in the economic meltdown was essentially let off the hook with a loophole.

The fact is this, the same people who got us into this mess are now bestowed with even more power and control and more of our money to screw this up even worse. While Obama constantly derides Republicans for being a lover of Wall Street, he gives them a slush fund and makes bad business decisions risk-less. Once again we see in this Administration there is no room for responsibility and, even if you are Wall Street, the government will be there to take care of you when you make bad choices.


Here is the President slamming the GOP and French Kissing Wall Street with his announcement.