Taking a lead on financial reform
"We lead the world in financial reform." That is the White House message to the G8 and G20 summits.
President Barack Obama has arrived in Canada with something to crow about. At the last G20, it was agreed that the world had to have new financial rules, although it would be left to individual countries to design their own laws.
After a late-night session, Republicans and Democrats agreed a framework for new rules curtailing some practices on Wall Street and giving consumers more protection.
He's had to make some sacrifices to get here: in particular there won't be greater regulation of loans by car dealers. Still, this puts the US ahead of Europe and there may be some jitters about the extent of the new laws.
But it will be a political tool for Obama. He's trying to take the initiative after a difficult few months and, on the White House lawns, before he left for Toronto, he portrayed it as yet another victory.
"Over the last 17 months, we passed an economic Recovery Act, health insurance reform, education reform, and we are now on the brink of passing Wall Street reform. And at the G20 summit this weekend, I'll work with other nations not only to co-ordinate our financial reform efforts, but to promote global economic growth while ensuring that each nation can pursue a path that is sustainable for its own public finances."
He didn't, of course, note that his latest stimulus package, worth $100bn, has bitten the dust for the third time in the Senate.
Asked if he could get financial reform through the Senate, he said "you bet". I wouldn't put any of my own money on this after the health care thrills and spills but he'll be willing to have an argument, in an election year, with Republicans he can portray as sticking up for Wall Street bankers against middle American consumers.
I’m Mark Mardell, the BBC's North America editor. These are my reflections on American politics, some thoughts on being a Brit living in the USA, and who knows what else? My 
~RS~q~RS~~RS~z~RS~11~RS~)
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Wow! Very interesting!
Of course, I hear tell from an out-of-work 50-something Aunt that Unemployment was NOT extended for the billionth time...
But hey. Baby steps. Right?
You can't always get what you want, but if you try sometimes, you just might find... you just might find... you can get what you need.
You betcha.
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I've just see you Mark, saying that this has been presented by the Mr. Obama as a major reform comparable to health care one.
It that's really the case, God help us all.
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MM wrote: "He [Barack Hussein] didn't, of course, note that his latest stimulus package, worth $100bn, has bitten the dust for the third time in the Senate."
"bum, bum, bum, bum, another one bites the dust!"
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"I SHOT THE SHERIFF [McChrystal], BUT I HAVEN'T SHOT THE DEPUTY"
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Meerkat,
You disagree with President Obama accepting GEN McChrystal's resignation? GEN McChrystal broke an article of the UCMJ, not to mention Army guidance about watching your mouth around reporters. Military subordinance to civilian authority, whether we think that they're doing a good job or not, is key to a functioning Republic.
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Republicians don't need to be "portrayed" as sticking up for Wall Street, it was the Republicians who deregulated Wall Street that caused all of this. It was the Republician appointed SEC who refused to investigate any of this when told and it was the Republician congress who when told eight years before it happended that this would be the result who did nothing. It was the Bush administration that created the bailout. The Obama haters like to revise history and contend that it was bureaucrats with regulations that caused the banks to do all of this. It was a corrupt financial services industry that had bought and owned a corrupt congress (R & D). The fact is that no matter what your politics you will be paying for the bad loans the banks made because your corrupt congress decided that you should. Even though the banks are doing very well and handing out large bonuses the government sees no need to return those bad loans they assumed from the banks. The deficit problem is primarily the bad loans that your government wants you to pay off for the banks. The rot that leads to collapse always starts from within.
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"We lead the world in financial reform." That's what the White House said? I’m still laughing; this was a joke, wasn’t it?
Ever since the repeal of the Glass-Steagall Act, the United States – for all intents & purposes – has had absolutely no financial regulation, and that lack of regulation was the problem that practically crashed the economic world.
Obama arrived in Canada with something to crow about; I can only hope that the other leaders are brave enough to make Obama eat crow.
At the last G20, it was agreed that the world had to have new financial rules, although it would be left to individual countries to design their own laws; however, each country can decide what it will trade and what it will not like Germany (and CDOs). Maybe the United States has to lose financial trading partners before it will shape up.
Never mind car loans, I want regulation on derivatives, CDOs, credit default swaps, betting against sovereign debt…
Asked if he could get financial reform through the Senate, he said "you bet".
The next question should’ve been “What mechanism have you established to segregate investment banking from regular banking? And what controls have you placed on unregulated derivatives?”
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Most US sentors are wealthy and therefore have monies invested in these various banks and investment firms and has seen at the beginning of all of this, sweetheart loans and such. It is unlikely that anything meaningful can come out of the senate as the lobbyist are currently distribting money for campaigns. The Senate is corrupt and mostly owned by Wall St. and bank. The Senate will water down any new regulations and produce that they see in the mirror..an empty suit.
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My understanding of these reforms is superficial at best, so I have to fall back on four basic observations:
1) Most of the economists I admire seem to think these reforms are nowhere near enough, but better than nothing.
2) The economists I respect seem to think the reforms are a good thing.
3) The economists I really despise are dead set against these reforms in every way. And finally
4) I still prefer, despite everything perhaps, to view my government through a prism of trust.
So lacking real knowledge and given these points, I have to conclude that congress and the President have done very well. We still seem to have way too many "too big to fail" enterprises bullying us all though, reform or no.
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Let us see, Obama ran up the federal deficit by $4 trillion in less than 18 months. It took G.W. eight years to do that.
With regards to fiscal reform, "Obama" should be the poster child for the "before" image.
Re: ghost of spicy hen, history tells us one Andrew Coumo and one William Jefferson Clinton started this mortgage mess in 1993. (Fannie Mae, Freddie Mac forced to issue garbage mortgages, ..., so they sold them in bundles) We lived the balance of the decade on credit. G.W. is guilty of not stopping it. Our good ole tax cheat Geithner made out pretty well for not being Republican. He is still doing fine, as are Clinton, Gore, Dashle, Pelosi, Reid, Rahm, Kerry, Boxer, Moore, Blitzer, Cooper, ... .
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There is a movement going on in USA started by the Tea Party activists which is to reduce our national deficit by cutting costs. This is one of the main reasons why the Tea Party has so much support across the USA and I believe it has influenced the Republican party to also push for more reduction of the deficit.
We can start getting our deficit under control now, but there must be hard decisions to make in how we are to do so. On one hand, we do not want to have everything drop out from under us in an instant. On the other hand, we do not want to let things get worse.
In this instance, I think Camereon has got the right idea. Camereon seems very strong and he is young. Will bring new ideas to the table.
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Is that really true, ann, that Obama ran up the deficit by 4 trillion in less than 18 months? What has it all been spent on?
I do know that when Bill Clinton handed the reins to Bush, we were almost neutral and in fantastic shape.
Bush and Obama are not a good combination.
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No reform on Fanie Mae, and no reform and cutting of goverment workers perks and pensions.
Retoractivly cut goverment salaries and pensions now!
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The deficit under President Bush went from black (no D) to over a trillion. This was doubled by the end of 2009 using a budget and two wars paid for by China and passed by Bush. The rest of the deficit is due to a little Recession and Financial meltdown caused almost entirely through lack of regulation and lack of regulation enforcement. Wall Street needs to be about investing in companies not gambling with mortgages or derivatives that most traders cannot fully explain. With the Supreme Court making companies into individuals the fate of our nation was sealed. There is little hope that the money that fills campaign coffers will be used to repair our damaged economy:(
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" Meerkat,
You disagree with President Obama accepting GEN McChrystal's resignation? "
BHO has not accepted anything.
On the contrary, because he could not [and cannot] accept the slighest criticism [btw. McC. has not criticised him personally] he FORCED McChrystal to resign.
Just like he forced gen. Petraeus to accept a demotion: id est, being degraded from a position of the CentCom chief to a position of the commander of U.S. troops in Afghanistan theater.
And, btw., what has Petraeus done to Barack Hussein to deserve that?
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It is so greedy and corrupted how our govt. has spent billions, even trillions of dollars for other countries, while the American people have and are suffering. What do we have to show for it? Things are worse than ever before.
We have spent so much money on other countries that there is none left for us. We are not asking for a lot. Just a govt. that cares for its people first over foreigners. But Bush's allegience was to money. Obama's alliegence is to liberal agendas, including foreigners. We simply have not been able to find a leader for Americans.
Basically, the Bush and Obama Admin. have sold the American people out.
What we have compromised- the future of our country- is priceless.
This is the Great American Sell-Out. It has nothing to do with our soldiers and military and everything to do with how our govt. has and is running America.
Now, the corporations are rearing their ugly head because they have all the money and the jobs, while people are struggling to get by. Corporations can be good, but only if we set regulations that put people's best interests first. Corporations want to cut costs, use less people and more machinery, ect. Now many of the CEOs of large corporations want us to accept and legalize more immigrants than ever before, as this will only decrease the available jobs, making everybody fight for them, and thus letting them set whatever standards they want because people are so desparate. Basically, it is like a form of legal slavery because they want us all to work for cheap labor.
We cannot reverse. We cannot go back. We can only go forward. But the time for Americans to take back our govt. is now. Before it is too late.
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Re "taking lead":
Germany - 4.
England - 1.
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Right now, the Democrats who are the majority in Congress, can put forth a plan to reduce our national debt. Yet so far they have not given us any good answers or ideas, besides borrowing and spending more money. Instead, they are focusing on their liberal agenda.
This is a real problem and a major reason why the Republicans are more popular than ever. The Republicans have all sorts of ideas how to reduce our national debt if they get the majority in Congress. It may be hard but it better to reduce the deficit now than later.
In my homestate of Illinois, Quinn and the Dems plan has been the same as the Obama Admin.- borrow and spend more money. Our schools, hospitals, ect. are all owed money by the state, who cannot pay, so they are all borrowing with interest. It is a vicious cycle. Well, Quinn also had another idea to reduce our spending. A dangerous one. Our prisons are also underfunded. Quinn approved a special release program at the end of last year. Now the program is shut down, after Quinn's claims that he didn't know they were going to release violent offenders. There are dozens of offenders who are on the lam now. George Ryan, Blago, Quinn, the list goes on and on. It seems awfully hard to find an honest politician anymore.
Do honest politicians even exist?
Or is it an extinct breed?
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