Obama's Wall Street Speech

Some nuggets from the turn of a speech by President Obama earlier today:

One of the most significant contributors to this recession was a financial crisis as dire as any we've known in generations. And that crisis was born of a failure of responsibility -- from Wall Street to Washington -- that brought down many of the world's largest financial firms and nearly dragged our economy into a second Great Depression.

It was a second Great Depression now? Gee, now that was some quick revisionism. Just a day or two ago, it was still being referred to as the "Great Recession." I'm not sure that what we went through could really be categorized as a Great Depression. According to Webster's Dictionary a depression is "a long and severe recession in an economy or market." By all indicators, the recession really began in earnest in fall 2008 and the recovery began in March or April 2009. By July 2009 economists were declaring that a recovery had begun. In any case, a six month dip could hardly be categorized as a Depression. And as I write this, the market has recovered to 11134 after dipping to around 6,000 just over a year ago.

One of the most significant contributors to this recession was a financial crisis as dire as any we've known in generations. And that crisis was born of a failure of responsibility -- from Wall Street to Washington -- that brought down many of the world's largest financial firms and nearly dragged our economy into a second Great Depression.

Oh, it was a failure of responsibility, all right. But let's include the American public in that, as well. Buying on credit without being able to repay their debts was a huge cause as well. That failure of personal responsibility, enabled and encouraged by Washington policies and lack of a good fiscal leadership in the running of the country's finances, is a yolk around the necks of both the public and the government.

Some on Wall Street forgot that behind every dollar traded or leveraged, there is family looking to buy a house, pay for an education, open a business, or save for retirement. What happens here has real consequences across our country

.Some in Washington (most, in fact) have forgotten the same thing. Behind every dollar collected in taxes or spent in the form of bailouts there is a family who's money is being spent without their consent - a family who won't be able to afford to buy that house or afford to pay for an education or open a business or save for retirement. Interesting that all of these areas mentioned are areas where the government has recently usurped private industry to gain more control over people's lives.

That's why these reforms are designed to respect legitimate activities but prevent reckless risk taking. And that's why we want to ensure that financial products like standardized derivatives are traded in the open, in full view of businesses, investors, and those charged with oversight.

You've got a lot of damn nerve, Mr. Obama in preaching about transparency and openness with your back-room deals and closed-door sessions despite promises to the contrary. Also, who defines what is "reckless risk taking?" Isn't using the term "reckless" rather, well, "reckless?"

Third, this plan would enact the strongest consumer financial protections ever. This is absolutely necessary. Because this financial crisis wasn't just the result of decisions made in the executive suites on Wall Street; it was also the result of decisions made around kitchen tables across America, by folks taking on mortgages and credit cards and auto loans. And while it's true that many Americans took on financial obligations they knew -- or should have known -- they could not afford, millions of others were, frankly, duped. They were misled by deceptive terms and conditions, buried deep in the fine print.

Finally, an ounce of truth (but followed by a giant helping of bullshit.) Duped? Really? Where are the mortgage lenders being put on trial? You would think that all the people who were ..ehem... duped would be breaking down the doors of their mortgage companies, no? you'd think there would be some high profile Enron-like trilas going on somewhere, right? I don't seem to recall any.

That's why we need to give consumers more protection and power in our financial system. This is not about stifling competition or innovation.

Denying a charge that hasn't even been levied yet. That's never a good sign.

That will mean more choices for consumers, more opportunities for businesses, and more stability in our financial system. And unless your business model depends on bilking people, there is little to fear from these new rules.

Now I'm scared shitless. "These aren't the droids you're looking for. Move along."

Finally, these Wall Street reforms will give shareholders new power in the financial system. They'll get a say on pay: a voice with respect to the salaries and bonuses awarded to top executives. And the SEC will have the authority to give shareholders more say in corporate elections, so that investors and pension holders have a stronger role in determining who manages the companies in which they've placed their savings.

Damn it, Barack! Quit telling people in private industry what they can and can't make!

Now, Americans don't begrudge anybody for success when that success is earned.

That's not what you just said, Barry. Damn it, man. Concentrate and get your shit together!!! Your doubletalk is starting to piss me off.

But when we read in the past about enormous executive bonuses at firms even as they were relying on assistance from taxpayers, it offended our fundamental values.

No, what offended our fundamental values was that companies were given bailouts in the first place, dipshit. Companies do not have the right not to fail if they are not run properly, aren't producing a product the people want or aren't treating their customers with respect. You let that company fail and a new leader emerges with a better product, better service. That's the way it's always worked. Sure, a giant company coming down would be painful for a lot of people, but even old trees have to make way for newer trees.

I will say this, though, since companies did get bailouts. Companies that got even a dime of bailout money should give NO bonuses - to anyone - until their loan has been repaid. After that, it's game on again.

I have laid out a set of Wall Street reforms. These are reforms that would put an end to taxpayer bailouts; that would bring complex financial dealings out of the shadows; that would protect consumers; and that would give shareholders more power in the financial system. But we also need reform in Washington. And the debate over these changes is a perfect example.

You effing hypocite. After spending trillions of dolars in bailout money, don't pretend now that you're suddenly morally opposed to bailouts. If you want to "put an end to taxpayer bailouts" then just don't give out any more bailouts. The doubletalk in this speech is simply dizzying.

But I believe we can and must put this kind of cynical politics aside. That's why I am here today. We will not always see eye to eye. We will not always agree. But that does not mean we have to choose between two extremes. We do not have to choose between markets unfettered by even modest protections against crisis, and markets stymied by onerous rules that suppress enterprise and innovation. That's a false choice. And we need no more proof than the crisis we've just been through.

But isn't more regulation exactly what you're proposing?

A whole lot of talk, not a whole lot of substance. But watch out. Obama has become notorious for saying one thing and doing the exact opposite. And the fact that he felt the need to assure Wall Street several time in this speech that he means them no harm should give them cause to be collectively crapping their pants right about now.

Can we just have an election, already?