Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - Part 2 - 3rd Dec 21
Stock Market Major Turning Point Taking Place - 3rd Dec 21
The Masters of the Universe and Gold - 3rd Dec 21
This simple Stock Market mindset shift could help you make millions - 3rd Dec 21
Will the Glasgow Summit (COP26) Affect Energy Prices? - 3rd Dec 21
Peloton 35% CRASH a Lesson of What Happens When One Over Pays for a Loss Making Growth Stock - 1st Dec 21
Stock Market Sentiment Speaks: I Fear For Retirees For The Next 20 Years - 1st Dec 21 t
Will the Anointed Finanical Experts Get It Wrong Again? - 1st Dec 21
Main Differences Between the UK and Canadian Gaming Markets - 1st Dec 21
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - 30th Nov 21
Omicron Covid Wave 4 Impact on Financial Markets - 30th Nov 21
Can You Hear It? That’s the Crowd Booing Gold’s Downturn - 30th Nov 21
Economic and Market Impacts of Omicron Strain Covid 4th Wave - 30th Nov 21
Stock Market Historical Trends Suggest A Strengthening Bullish Trend In December - 30th Nov 21
Crypto Market Analysis: What Trading Will Look Like in 2022 for Novice and Veteran Traders? - 30th Nov 21
Best Stocks for Investing to Profit form the Metaverse and Get Rich - 29th Nov 21
Should You Invest In Real Estate In 2021? - 29th Nov 21
Silver Long-term Trend Analysis - 28th Nov 21
Silver Mining Stocks Fundamentals - 28th Nov 21
Crude Oil Didn’t Like Thanksgiving Turkey This Year - 28th Nov 21
Sheffield First Snow Winter 2021 - Snowballs and Snowmen Fun - 28th Nov 21
Stock Market Investing LESSON - Buying Value - 27th Nov 21
Corsair MP600 NVME M.2 SSD 66% Performance Loss After 6 Months of Use - Benchmark Tests - 27th Nov 21
Stock Maket Trading Lesson - How to REALLY Trade Markets - 26th Nov 21
SILVER Price Trend Analysis - 26th Nov 21
Federal Reserve Asks Americans to Eat Soy “Meat” for Thanksgiving - 26th Nov 21
Is the S&P 500 Topping or Just Consolidating? - 26th Nov 21
Is a Bigger Drop in Gold Price Just Around the Corner? - 26th Nov 21
Financial Stocks ETF Sector XLF Pullback Sets Up A New $43.60 Upside Target - 26th Nov 21
A Couple of Things to Think About Before Buying Shares - 25th Nov 21
UK Best Fixed Rate Tariff Deal is to NOT FIX Gas and Electric Energy Tariffs During Winter 2021-22 - 25th Nov 21
Stock Market Begins it's Year End Seasonal Santa Rally - 24th Nov 21
How Silver Can Conquer $50+ in 2022 - 24th Nov 21
Stock Market Betting on Hawkish Fed - 24th Nov 21
Stock Market Elliott Wave Trend Forecast - 24th Nov 21
Your once-a-year All-Access Financial Markets Analysis Pass - 24th Nov 21
Did Zillow’s $300 million flop prove me wrong? - 24th Nov 21
Now Malaysian Drivers Renew Their Kurnia Car Insurance Online With Fincrew.my - 24th Nov 21
Gold / Silver Ratio - 23rd Nov 21
Stock Market Sentiment Speaks: Can We Get To 5500SPX In 2022? But 4440SPX Comes First - 23rd Nov 21
A Month-to-month breakdown of how Much Money Individuals are Spending on Stocks - 23rd Nov 21
S&P 500: Rallying Tech Stocks vs. Plummeting Oil Stocks - 23rd Nov 21
Like the Latest Bond Flick, the US Dollar Has No Time to Die - 23rd Nov 21
Why BITCOIN NEW ALL TIME HIGH Changes EVERYTHING! - 22nd Nov 21
Cannabis ETF MJ Basing & Volatility Patterns - 22nd Nov 21
The Most Important Lesson Learned from this COVID Pandemic - 22nd Nov 21
Dow Stock Market Trend Analysis - 22nd Nov 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Elizabeth Warren In Office But Not In Power, Bankster's Cheer Tepid Financial Reforms

Politics / Market Regulation Sep 19, 2010 - 07:29 PM GMT

By: Danny_Schechter

Politics

Best Financial Markets Analysis ArticleHooray, Elizabeth Warren is to become a Special Assistant to President Obama in charge of setting up the Consumer Protection Bureau that she conceived. Alas, it is not to be the independent agency she wanted but a bureau within the Federal Reserve Bank, a branch of government that is really run by big banks which and did virtually nothing to protect consumers when they needed help the most.


For the Obamacrats, this is a good move in political terms because the White House had been battered by the Democratic base to appoint the outspoken Warren to the job, Asked about the issue at his recent press conference, he was his usual coy and cautious self. He said he hadn’t decided.

Now he has—but not to appoint her to the job she deserves but to a post in the Executive Branch under his control and with oversight by Tim Geithner, Larry Summers, and Rahm Emanuel et. al. (The White House worries that they could not win a protracted confirmation battle.)
.
So she’s in, but hardly in charge, or able to be an independent force. Remember that quote from the Godfather taken from Chinese military strategist Sun Tsu: “Keep your friends close, and your enemies closer.”

The usually on-target blog, Naked Capitalism, suggests that the Warren appointment was just a way to sideline her, not put her in a position of real power. In any event, the new Bureau’s rules will not be in effect until 2012, if then.  So much for urgency!

At the same time, Warren has posted positively about her new job on The White House website and reports having had several meetings with President Obama.
http://www.whitehouse.gov/blog/2010/09/17/fighting-protect-consumers

At the same time, economics analyst Yves Smith warns, don’t believe the hype: “It is now official that Warren is at best a placeholder; she cannot have much impact. She can’t make much in the way of policy or personnel choices; that would encroach on the authority of an incoming director. And even her ability to influence the choice of a nominee is questionable. Her taking the advisory role now assures that the nomination of the permanent director will come after the midterm Congressional elections. Given the virtual certainty of Democratic losses, the odds are high that Team Obama will settle on a “conservative” meaning “won’t ruffle the banking industry” choice, and argue its hands were tied.

On the right, Warren, a former Republican, is pictured as a bring down the banks revolutionary. The financial industry hates her, perhaps because she is too smart for them,

Progressive critics fear the Consumer Protection Bureau is only a way to placate the public by containing abuses but without doing too much harm to the bankers.  One example: Credit card “reforms” do not roll back usurious interest rates. Requiring disclosure is not the same as ordering the restructuring of loans to make them affordable.

The banksters are publicly unhappy but privately know they are getting off easy. According to the Financial Times, “The full impact of the new global bank capital rules announced at the weekend is likely to be 30 per cent tougher than the headline ratio suggests, according to regulators and industry participants who have studied private banking data.”

Just 30 percent! Most Americans don’t realize the global dimensions of the crisis and the fact that many in the world are suffering more than we are because of unchecked speculation on Wall Street.

And, so much for the international bankers at Basel forcing their American kin to impose the tough rules that are needed. What they have achieved has been characterized as bringing forth a mouse.  There is nothing in place that will stop a recurrence of the Lehman collapse two years this week, There is no real debate about whether more institutions will fail, only when,

I watched an interview on BCC’s Hard Talk program with the head of Britain’s Hedge Fund Association who told a hostile interviewer (or maybe an interviewer posturing as hostile”) that (a) The industry realizes regulation is in its interest and (b), the reforms in America are not that tough.”

When you hear a banker say that, you know that regulations so far are more of a show than anything else.

The Financial News reported that the men (and some women) once labeled the “big swinging dicks” on Wall Street are doing well, thank you. The magazine features a “where are they now” spread showing that many of the top CEOS responsible for the loss of Trillions have landed on their feet, and are now in jobs/sinecures in new firms, and live free of any fear of prosecution.

In fact the new compromised and watered down rules has actually helped the banks prosper. Here’s one headline in the FT: “US financials boosted by new bank rules.”

At the same time, as the economy continues its jobless non-recovery, the overall situation is bleak according to a more substantive report in the same newspaper:  “Big US banks are nearing the end of another disappointing quarter for their trading businesses that has deepened fears over job losses on Wall Street.”

New figures show a significant rise in poverty with one in seven barely making it.  That represents 44 million people.  47 million Americans are on food stamps. One out of five children are in this group.

Earlier this week in Britain, Mervyn King the Governor of the Bank of England spoke to the Trade Union Congress. He admitted that it was unfair when banks were bailed out while there was no help was provided to workers who lost jobs when factories were closed. 

Nevertheless, he appealed to the workers to accept tough austerity measures that will lead to public service cutbacks and job losses.

One union leader attacked the TUC for inviting him, calling him the devil and comparing his own union convention to church that invites Satan to give the sermon.

So called “conservatives” in the US are promoting austerity policies similar to the ones being pursued in Britain including those tax cuts for the rich. Meanwhile, there is push back as 300 economists and analysts warn that the "deficit hawks" who appear to be gaining the upper hand in our economic debates are threatening to turn an already deeply painful recession into a full-blown depression. 

“The experts warned that the American economy now stands at a crucial juncture. They acknowledged that public debt is mounting, and presented a choice of two different paths to right the ship: imposing fiscal "austerity" today, in the midst of the most serious downturn since the Great Depression, or investing in the American economy -- with public spending over the short term -- in order to grow our way out of the red ink.”

The alternatives are clear. Which side are you on? Denial is no longer an option

A group called One Nation is mobilizing a march on Washington for jobs and justice on October 2.  Will it be big enough and noisy enough to make a difference? 

News Dissector Danny Schechters film and book Disinformation. For more information, Http://www.plunderhecrimeofourtime.com.

    News Dissector Danny Schechter has made a film and written a book on the “Crime Of Our Time.” (News Dissector.com/plunder.) Comments to dissector@mediachannel.org

    © 2010 Copyright Danny Schechter - All Rights Reserved
    Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in