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Straight talk on excess
Wall Street, whose ways led to recession, gets warning from Obama
Tuesday, Sept. 15, 2009 | 2:06 a.m.
A year ago Wall Street’s financial institutions erupted into chaos because they had invested recklessly during an era of lax federal regulation.
In quick succession Lehman Bros. filed for bankruptcy, an act that precipitated its liquidation, and Merrill Lynch, on the verge of collapse, sold itself to Bank of America.
The teetering of other firms, including American International Group and Washington Mutual, suddenly became obvious, signaling that a federal takeover days earlier of mortgage finance companies Fannie Mae and Freddie Mack hadn’t stemmed the crisis.
By October Congress had authorized an initial $350 billion to bail out the nation’s big financial institutions from their rash investments in subprime mortgages. This rescued Wall Street but did not prevent the onset of recession.
The country paid the price as banks stopped lending, retirement savings lost much off their value, spending fell off, home prices dropped, foreclosures mounted and record numbers of laid-off people became desperate in a fast-shrinking job market.
President Barack Obama, who took office Jan. 20, pushed through a second phase of bailouts as well as a stimulus bill. His policies since have worked well enough so that today many economists are declaring the recession over, although high unemployment remains.
But Obama fears that Wall Street firms, whose bailouts enabled them not only to survive but also to begin again with lavish bonuses and plans for risky investments, could bring on another crisis.
On Monday Obama traveled to Wall Street to deliver some straight talk, including a warning that bailouts are over.
“We will not go back to the days of reckless behavior and unchecked excess at the heart of this crisis, where too many were motivated only by the appetite for quick kills and bloated bonuses,” the president said.
Obama also called upon Congress to help prevent another systemic failure of the financial system by passing his administration’s proposals for tough new financial regulations. Obama is also calling for an agency that would provide financial information to consumers, so they can fully learn about adjustable rate mortgages and other types of loans.
The president is steadily steering the country out of the recession. It would be wise to heed his words if we want to avoid this one getting worse or another one getting started.
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This speech to Wall Street was nothing more than populist BS. Obama and his boy Rahm can read the polls, and they know which way they're heading: downward, and fast.
Hmmm, how do we get the poll numbers back up? I know -- criticize bankers and Wall Street rich guys. Everybody hates them, so I'll look like a man of the people again.
So Obama shows up and talks tough to Wall Street because he knows it will play well with Liberal sheep. Obama shoots some fish in a barrel and predictably the Sun goes ga-ga again.
That's OK. I'll keep showing up to keep you guys honest.
It has been a year and no action by Obama, Reid, and Pelosi.
Where is the change
If the recession is over why is Nevada hurting so bad?
Did Obama and our Senate leader forget to design help for Nevada or do we just not count?
The Governor and the legislature are meeting about the revenue coming in so far below projections the spending will have to be cut again.
The construction workers are about to be laid of by the thousands. Why wont harry Reid help Nevada instead of protecting the salt water marsh rat in Pelosi's Marin District?
Future said....
"It has been a year and no action by Obama, Reid, and Pelosi.
Where is the change."
Hmmmmm... what calendar are you using? I believe Obama took the oath of office less than 8 months ago....
"reckless behavior and unchecked excess"? Sounds like Congress!
Nevada will never recover until it finds a way to reinvent itself. Nevada's economy was based on tourism and growth. Growth is a huge "ponzi" scheme that fills the coffers until the first moving truck doesn't arrive on time, then the house of cards falls as we well have seen. This leaves construction workers out of work and begins a spiral as the businesses dependent on them fail.
Likewise, tourism is dependent on people having cash and willingness to spend it on the excesses of Vegas. Needless to say, this isn't happening.
Unfortunately, low taxes alone don't provide the infrastructure for rebuilding an economy that might be a little more recession resistant. We need better roads, schools, and social services to attract high end 21st century businesses to Nevada.
"It has been a year and no action by Obama, Reid, and Pelosi.
"Where is the change"
If there's been no change, then what all you birthers and teabaggers so upset about? It seems to me that the threat of change is what's gotten your panties all in a wad.
If the President's health care plan doesn't represent change, why are you so vehement in your opposition? If the President's plans for re-regulating Wall Street don't represent change, then why is the Republican Party already lining up against it?
Hey John... "...all you birthers and teabaggers..."
More name calling John?
Can you give me a definition of "teabaggers?"