After a stunning U.S. Senate election defeat this week that showed Democrats may be losing their appeal with Americans, Barack Obama, the U.S. President, went back to bashing an easy, populist target: Wall Street.
Mr. Obama, a Democrat whose popularity has been waning, yesterday proposed new rules aimed at clamping down on the trading activities and size of banks — news that sent the stocks of America’s big banks tumbling on concerns their future profit-making potential would be curbed.
“If these folks want a fight, it’s a fight I’m ready to have,” Mr. Obama told reporters at the White House. “We should no longer allow banks to stray too far from their central mission of serving their customers.”
The President’s announcement came as Goldman Sachs Group Inc. announced it would pay US$16-billion in bonuses to its employees this year, less than usual for the banking giant but still plenty of money to raise the ire of millions of unemployed Americans.
“While the financial system is far stronger today than it was one year ago, it is still operating under the exact same rules that led to its near collapse,” Mr. Obama said. “My resolve to reform the system is only strengthened when I see a return to old practices at some of the very firms fighting reform; and when I see record profits at some of the very firms claiming that they cannot lend more to small business, cannot keep credit card rates low, and cannot refund taxpayers for the bailout.”
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Related:
Obama Shifts to Populist, Pushes Jobs in Ohio
Bank shares tumble on Obama crackdown
European bank stocks drop on Obama plans
Swedish Bank Fee Sets Example for America
Updates:
12:48 pm EST, January 2nd, 2010 — Krauthammer: The Meaning of Brown
12:57 pm EST, January 22nd, 2010 — Taranto: W II
1:35 pm EST, January 22nd, 2010 — Black: Incompetent Obama teeters on the edge (Must Read)
2:49 pm EST, January 22nd, 2010 — The Day ObamaCare Died! (video)
2:59 pm EST, January 22nd, 2010 — Five Memes Destroyed by Scott Brown’s Victory
3:24 pm EST, January 22nd, 2010 — Obama Pledges He Won’t ‘Walk Away’ From Health Care Reform
What Obama didn’t mention in his address yesterday (no questions allowed afterward because Obama would have no idea how to respond spontaneously) was the role of Fannie and Freddie. He did mention (incredibly in glowing terms) the same “perps” Chris Dodd and Barney Frank (the foxes are still in the henhouse) who are “helping” him deal with the financial overhaul. However the Paul Volker report does indeed mention Freddie and Fannie, but that story doesn’t suit Obama’s attempt to deflect the blame of excessive government intervention into the US financial system as precipitator of the problems.
The President of a small town Community Bank was interviewed with his analysis about the damage Obama would do to the housing market by making these broad brush attacks on Banks and adding costs to mortgages; thus negatively impacting the supply/demand curve of housing. Ergo, it’s a new tax on Housing .. are you listening Dalton with your new HST tax on housing?
Obama while attacking the co-mingling of funds between retail banking and investment banking failed to mention Bear Sterns and Leman and AIG, none of which were co-mingling insured government insured retail deposits. Obama simply has no clue what he is talking about, he’s just trying to fuel anger at Wall St and deflect close examination of his own administration’s incompetent management.
Politics politics politics, nothing to do with the American economy and the timing has everything to do with Obama trying to take American voters mind’s off of the defeat in Massachusettes. The incompetence is stunning.
Obama has done his best to undermine the economy, but it will take greater effort to make the damage permanent.
Booooooo for Obama
The investors will just set up shop in Shanghai. Or Dubai (who needs a new business model about now).
Can’t defend this move.
On Conrad Black’s observations……eloquence.
I blame the media for this debacle. If they had done their jobs properly in the first place Americans wouldn’t be facing this mess today. They are because they were lied to.
Will Obama face impeachment?
“Probably” — and in less than a year.
Why would that be?
“Sheer incompetance” is the big reason but I’m certain that if that doesn’t work Republicans will dream up something. As soon as it happens and he’s gone they can get to work on Biden (who is even worse).
It’s a “hopychangy” thing and “yes, we can”.
Jack, you NEED to read “Game Change”. I think you’ll eat it up if you’re looking for criticism of Obama … or Hillary … or anyone else in the race for that matter. I’m about 1/3 the way through and am thoroughly fascinated. Much of your complaints were echoed by both Clintons and in some cases even Obama himself.
Re: # 7 — “Jack, you NEED to read “Game Change”. ”
I’ll try to find it. For now I will only say that the media has fed Obama’s ego (which is huge) and they are all wrong. I’ve never shot Obama down directly.
I’m trying to draw attention to the massive number of “Barney Frank’s” standing behind the throne who are in deep shit. It looks good on them all and it should continue.
Obama is just stupid and doesn’t know when he is being used. Unfortunately for him the American public sees it clearly and in short order they are going to deal with the problem.
‘Obama is just stupid and doesnt know when he is being used’ reminds one of Bush who was used by Cheney & his knuckledraggers. In fact, I believe Cheney was nicked named ‘Bush’s brain.’
Obama has only been in power one year and has to clean up Bush’s mess which took two terms to accumulate. But a message has been sent that Americans want emphasis on jobs, jobs, jobs which may not be good news for Canada should they close the door to more Canadian imports.
More contradictory insults. Obama is apparently stupid and an empty suit, yet he is a conniving socialist setting out to destroy America. I wish the right could settle on a single slur (apart from the one they’re trying very hard not to utter). Obama can’t be stupid and a manipulator at the same time.
“I wish the right could settle on a single slur (apart from the one they’re trying very hard not to utter).”
So you think everyone who wants smaller government, freer markets and protection of individual rights is a racist? You’re a pretty f*cked up kid.
That would be F’ed up if I said it. Fortunately for me …
Like you, Jack, I blame the media. Fools in the msm with thrills running down their scrawny legs gushing over a guy who had brought nothing to the table to gush or thrill over – and the vile treatment, by the media, dished out to a very capable vice presidential candidate and anyone who supported her – set the table for this disaster in America.
‘Clothes don’t make the man’ was one of my Grandmother’s stock sayings. This latest mess in USA is a classic example of how wise my Grandma was; the handlers gave the guy voice training and a teleprompter. They dressed him in suave preppy type clothes and went over the top in praising his style and rhetoric. Critics of ‘the chosen won’ (by the media) were dumped on and charged with being racists and narrow minded elitists – so the critics were silenced by P.C. There was no debate.
The Republicans, in their new found P.C. ness silenced the very valid criticism of BHO that Governor Palin voiced. Republicans AND Demos were both on the anti smoker’s ban and they were both supporters of the right of government to seize private property and dictate rules for private businesses. This should have been a warning shot for all people who value Liberty) collaborated to spread the dark, deadly smog of P.C., like a plague, had swept into every corner of people’s lives. The people and the media did not DEMAND to see the present presidents papers, his life record, they did not wonder (as Governor Palin did) about his Bolshevik pals and the human hating preacher in the church he attended. The media pulled the wool over people’s eyes but Fox News and some courageous web sites (like this one) did ask questions…so the people were not totally blindsided, they were cowed and since McCain was truly uninspiring, the average person was not willing to have him/herself tarred and feathered by the powerful media for the sake of a victory for a(nother) lack luster President. Both choices seemed bad to sane people, this coupled with the vileness piled on any person who dared to ask inconvenient questions about BHO. Governor Palin was treated with such hatred and verbal abuse by the media that fear of the same treatment made people keep their mouths shut. Sarah Palin was an open book and she had nothing to hide; most people do not have that kind of clean past; most people have one or two black marks that they do not want hashed over in public by a nasty, vitriolic media. So few said much (except Glen Beck!) and the result of this cowardly behavior as the direct result of P.C. is now clear for all to see…in it’s naked ‘splendor’. Oh what a knight, has a whole new meaning.
That would be F’ed up if I said it. Fortunately for me …
You did say it. Grow up.
Actually, you grow up. You’re projecting YOUR impression of the Obama detractors, when I don’t see many of them that way at all. People truly concerned about low taxes and small government (e.g. Alex Jones et al) didn’t wait until a black liberal was voted into office. They were also out there protesting when George Bush dumped billions into that faulty war that gave you neocons a collective orgasm. They’re complaining about Obama but that least they’re consistent rather than being opportunistic partisans. These tea party leeches who back a status Republican and take their marching orders from Glenn Beck are frauds, perpetuating the latest GOP campaign.
As for the race thing, the posters and videos are all out there, if you care to see them. But you can’t lie about the source of much of the animosity in the internet age. Sorry.
When GW Bush won the nomination I wondered why the GOP couldn’t find a better candidate. Of course he looked like a genius compared to Gore but that doesn’t say much. I wondered why the Dems would pick the empty suit Obama. Not that I liked Hillary or McCain but shouldn’t the American people have better options than the ones provided? When you’re picking the best of a bad lot and get Obama the talent pool is running extremely shallow. My only question is one that I have heard Jack express is if Obama is going to survive his first term. Once again the answer lies in the alternatives Biden (shudder) or Pelosi (double shudder).
Hillary Clinton is a far more capable governor than Obama. It wasn’t so much that Obama won as Hillary Lost, owing mostly to internal Democrat fears about Bill’s scandals and the number of people who reeeealllly hated Hillary. Many expected Hillary supporters were ready to back the most viable non-Hillary out pure fear. Edwards was considered unelectable due to being all platitudes and having too many skeletons in his closet. Obama on the other hand was unknown, likable and amenable to different political platforms.
Obama got his mojo the moment David Geffen and Maureen Dowd conspired to write an anti-Clinton op-ed, encouraging many closet Hillary-Haters to come out and support Obama. He thereafter grew into the role. Contrary to what many conservatives think, Obama’s black support was a good 20 points behind Hillary’s until the end, while he didn’t get the support of the old civil rights leaders until he had defeated Clinton.
Bush may not have been the sharpest knife in the drawer but I don’t recall him taking his teleprompter to speak to the kids in grade school. http://dougpowers.com/2010/01/19/totus/
Based on Hedge’s response to hearing about 9/11 maybe he should have. Probably would have given Michael Moore less material to work with.
Yeah but Moore thinks that a tropical island nation that lets its mental health patients freeze to death is a nation to be emulated which doesn’t speak too highly of the critic of Bush.
My question for the critics of Bush’s response was what should he have done? What did Roosevelt do when Pearl Harbor was attacked? We don’t knowbecause there were no television cameras present. I would think that spending a moment or two contemplating the consequences and the responses is more than a little reasonable.