Obama: Fresh crisis without new financial rules
The U.S. is destined to endure a new economic crisis that sticks taxpayers with the bill unless Congress tightens oversight of the financial industry, President Barack Obama said Saturday.
"Every day we don't act, the same system that led to bailouts remains in place, with the exact same loopholes and the exact same liabilities," Obama said in his weekly radio and Internet address. "And if we don't change what led to the crisis, we'll doom ourselves to repeat it.
So let me see if I have this straight......congress over the last thirty years set about to completely dismantle and set aside all checks and balances on banking and the financial system, while at the same time the government (congress and federal regulations) sought to insure that "affordable housing" was available for one and all. (under the auspices of Jimmy Carter's initial "Fair Housing Act).
The banks and investment houses that sprang from this government lunacy of deregulation and re-regulations, then set about to create offshore bundling operations of trillions of dollars in bad paper investments, to be traded about and speculated on over the last fifteen years.
And all of this paper mortgage wealth was built upon a house of cards and an ever increasing Ponzi scheme of both government regulation and a forced perspective of social gerrymandering by congress. Combine that reality with the greed of bankers, who found a way to play the lunatic system that the federal government had imposed upon the banking industry and you have the perfect storm.
And when the entire scheme collapsed in the summer of 2008? It was then the taxpayers responsibility to bail out the banks. Which in reality meant that it was the taxpayer's responsibility to bail out the banks who had been led into insolvency by congress and federal regulations on lending since the late 1970's under Carter.
As initiated by president Jimmy Carter and carried forth by president Bill Clinton, these two administrations (along with considerable help from republicans in congress during the period) were able to all but bankrupt this nation by created a false representation of reality. The reality being represented, that not only was everyone entitled to own a home, but through creative financing, anyone with a pulse could buy one. .
So in the fall of 2008 after the entire 'mechanism' collapsed, congress approved and the waning Bush administration signed the 750 billion dollar TARP act to supposedly bail out these banks and insurance companies that were supposedly "too big to fail."
And now comes this dire warning from Obama, who says that if we don't give him absolute power and say so over the entire banking industry now? Then "They" will do it again. And the American taxpayer will once again be led down the road to ruination and placed back on the hook for more bailouts. (perhaps no one has told the dear president that America won't last long enough for a second ruination at this rate).
So the president's proposed solution?
A proposal that Senate Democrats are readying for debate creates a mechanism for liquidating large financial companies to avoid a meltdown.
For the first time, the government would regulate derivatives, those financial instruments whose value depends on an underlying asset, such as mortgages or stocks. Derivatives can help hedge risks. But derivatives can produce steep losses, or huge profits, if the value of their underlying asset sinks.
The proposal also would create a council to detect threats to the financial system and set up a consumer protection agency to police people's dealings with financial institutions.
On Friday, Obama promised to veto the bill if it doesn't regulate the market for derivatives, which contributed to the nation's economic problems after their value plummeted during the housing crisis.
But Democrats haven't agreed on how far such regulation should go, and all Senate Republicans are united against the bill. That opposition complicates Democratic efforts to get the 60 votes necessary to overcome likely GOP procedural roadblocks.
Republicans contend that a provision creating a $50 billion fund for dismantling banks considered "too big to fail" would continue government bailouts of Wall Street. Obama administration officials say such a fund is unnecessary and they want Senate Democrats to remove it.
Well now....I can't speak for everyone else? But that certainly makes me feel better. The democrats are proposing a 'mechanism' for liquidating large financial companies to avoid a meltdown?
And they want to create a council to 'detect threats" to the system in the future.
Here is a tip.....we don't need a counsel for detecting threats to the American system of government or finance either now or in the future. We already have a system and it's real simple. Don't allow the democrats to have any say so over either the government or the finances of this nation period.
If nothing has been learned since the last election, I certainly hope that lesson has been driven home, as this congress and this administration have already spent more than all of their predecessors combined. So yes, the same people that crashed the bus and are in the process of driving it over a cliff, want more power and more ability to insure that they are continued to be allowed to drive it into oblivion.
I am sorry, but I ain't buying that load of bullocks Barry.
This is nothing but a ruse to accomplish more of a power grab for your 'regime' as Rush Limbaugh has rightly named it. Since being in office for a little over a year, Obama has all but bankrupted Wall Street, driven two of the big three auto makers into the ground, led us into double digit unemployment and stands to do the same concerning inflation and now he wants us to turn over the keys of control to all the banks to him and his band of rogue socialist interlopers.
I say think again and guess again America. If the American people are stupid enough to allow him and Pelosi and that rogues gallery of a congress to get away with this power grab, then they deserve what they get after that.