Obama: should he be referred to as Bush Lite, or Bush III?
Tactical Error: Health Care vs Finance Regulatory Reform
I believe the brain trust behind the Obama White House has made a huge tactical error.
As Rahm Emmanuel likes to say, one should “never waste a crisis” — and the White House has done just that.
There was a narrow window to effect a full regulatory reform of Wall Street, the Banking Industry and other causes of the collapse. Instead, the White House tacked in a different direction, pursuing health care reform.
This was an enormous miscalculation.
I’m not sure who to blame, but the leading suspects (in order) are Larry Summers, Rahm Emmanuel, Tim Geithner, and (perhaps) David Axelrod. Instead of a populist clean up of The Street (ala Eliot Spitzer circa 2,000), Obama advisors allowed a smoldering resentment to take hold and build amongst the electorate. The massive taxpayer wealth transfer to inept, corrupt, incompetent bankers has created huge resentment amongst the populace — regardless of political affiliation.
There was widespread popular support for a full reform of finance. What the White House should have pursued was: 1) Reinstatement of Glass Steagall; 2) Repeal the Commodity Futures Modernization Act; 3) Overturning SEC Bear Stearn exemption allowing 5 biggest firms to leverage up far beyond 12 to one; 4) Regulating the non bank sub-prime lenders; 5) Continuing high risk trades to be compensated regardless of profitibility; 6) Mandating (and enforcing) lending standards, etc. [emphasis added]
Never waste a crisis, indeed . . .
This adminsitration is loaded down with do-nothings like Rodham and Holder, know-nothings like Shitener and Summers, know-it-alls like Emmanuel and the press secretary (whose name must never be spoken, lest he see it in print and stoke that ego even more) who has no real power, but whose attitude represents the supreme arrogance of lottery winners.
We get the government we deserve.