Obama vs the banks comment
Posted by WARREN MOSLER on December 14th, 2009
Looks like a lapse into behavior not becoming a President- name calling, cheap shots, demonizing, and failure to recognize the behavior in question is a consequence of incentives built into the current institutional structure.
The legislation in question completely misses the point.
More and more voters are beginning to believe this is deliberate.
>
> (email exchange)
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> Of course, your reform is vastly superior to anything that is out there.
>
> But this criticism of the banks is sheer hypocrisy on the part of Obama.
> It’s kabuki.
>
> It might even be deliberate: see Matt Taibbi’s evisceration of the Obama
> financial reforms. He’s usually on top of the prevailing zeitgeits.
>
> This legislation will be totally ineffective. Interesting today that the
> bank stocks went UP on passage of the bill.
>
yes.
Policy just keeps getting worse.
I’ve about lost hope that he can ever get it right, unless accidentally.
The longer term risk is fiscal tightening. So far it’s not actually happening.
A driving force behind tax rate hikes is the misread that the Clinton tax rate hikes ‘worked’ to both spur the economy and drive the budget into surplus.
I suppose a repeat of the massive expansion of consumer debt that reached maybe 7% of gdp by 1999 could
somehow materialize isn’t impossible, but sure seems highly unlikely in the current environment.
Apart from the fact that it’s also not my first choice for supporting output and employment.
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December 14th, 2009 at 11:47 pm
Second the vote for Obama kabuki. The country is incensed over the perception that Wall Street is getting all the gifts and Main Street is getting coal. Like it or not, the public thinks that the president is Santa.
But beyond that, Obama’s recent statement that the US is “running out money” says it all. He is either clueless or being disingenuous (to put it euphemistically).
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