The President tries to get the Banking Industry ‘back in the bottle’ with Restrictions….and get back on top….

President Obama….trying to regain the high ground…is going back to safe ground, and beating up on the Banks…which everyone hates……

President Barack Obama proposed Thursday new rules designed to restrict the size and activities of the U.S.’s biggest banks, the latest in a series of administration moves to curb Wall Street.

The White House wants commercial banks that take deposits from customers to be barred from investing on behalf of the bank itself—what’s known as proprietary trading—and said the administration will seek new limits on the size and concentration of financial institutions.

“My resolve to reform the system is only strengthened when I see a return to old practices at some of the very firms fighting reform; and when I see record profits at some of the very firms claiming that they cannot lend more to small business, cannot keep credit card rates low, and cannot refund taxpayers for the bailout,” President Obama said Thursday. “It is exactly this kind of irresponsibility that makes clear reform is necessary.”

The President must be a bit shaken up because he has Paul Volcker back by his side…the first time in year, since Volcker was shuttled aside in favor of Geithner and Bernanake…two guys who have their own current public relations trouble……The President…..a rookie, and a little unsteady these days, is reaching back finally, in a Bill Clinton sort of way, after realizing that he was trying do a bit too much of’ ‘Change ‘for the politcal process in shock from the economy  to swallow….look for some more slowing of things, in days to come…..and more political maneuvering…..

I just know Bill Clinton has been on the phone to Obama……Healthcare and too much too soon?.…

Just like Clinton term one….

And the campiagn…when in trouble…. go on the offense……

The President tries to get the Banking Industry 'back in the bottle' with Restrictions….and get back on top….

President Obama….trying to regain the high ground…is going back to safe ground, and beating up on the Banks…which everyone hates……

President Barack Obama proposed Thursday new rules designed to restrict the size and activities of the U.S.’s biggest banks, the latest in a series of administration moves to curb Wall Street.

The White House wants commercial banks that take deposits from customers to be barred from investing on behalf of the bank itself—what’s known as proprietary trading—and said the administration will seek new limits on the size and concentration of financial institutions.

“My resolve to reform the system is only strengthened when I see a return to old practices at some of the very firms fighting reform; and when I see record profits at some of the very firms claiming that they cannot lend more to small business, cannot keep credit card rates low, and cannot refund taxpayers for the bailout,” President Obama said Thursday. “It is exactly this kind of irresponsibility that makes clear reform is necessary.”

The President must be a bit shaken up because he has Paul Volcker back by his side…the first time in year, since Volcker was shuttled aside in favor of Geithner and Bernanake…two guys who have their own current public relations trouble……The President…..a rookie, and a little unsteady these days, is reaching back finally, in a Bill Clinton sort of way, after realizing that he was trying do a bit too much of’ ‘Change ‘for the politcal process in shock from the economy  to swallow….look for some more slowing of things, in days to come…..and more political maneuvering…..

I just know Bill Clinton has been on the phone to Obama……Healthcare and too much too soon?.…

Just like Clinton term one….

And the campiagn…when in trouble…. go on the offense……

Matt Taibbi calls his President a ‘sellout’ to Wall Street…….

Matt Taibbi, In a Rolling Stone piece, (his dad is a long time New York NBC reporter ) calls out President Obama for his sell out to the Wall Street..…it’s his keyboard…..but he seems to be echoing the speech Paul Volcker gave in London this week…..that is that…… no innovation was used in making the economy better in the last year…that insiders from the Wall Street gang was placed in charge of the fix……

The piece is long and listened to Taibbi on the POTUS radio one afternoon…and found him convincing…but then I took some time to think over his argument (and Volcker)……..And I realized that there was a few things missing from the reality of his argument…..

Both Taibbi and Volcker expected President Obama, a rookie president, who got at huge problem dumped in his lap, to act in a way that would completely change the system….To deal with the systemic issues, instead of solving the crisis….

A little more than a year ago things were, to put it mildly…..Off the hook….And scary…I never knew how scared these gown white guys with money where until I saw a wonderful PBS special about the crisis….These people where scared s*#tless…..

To expect a President to NOT rely on people who he knew personally , (Geithner and Summers) and the existing Federal Reserve Chair, is out of the question…….Obama did consult Volcker, who stood next to him at the momentous economic press conference the President held upon taking office…but the fact is (as I point out in earlier post) Volcker got named to a committee and then got the door slammed in his face…….

Obama ‘s biggest worry wasn’t really how the damn problem started…he wasn’t an economist…his problem was stopping the whole world economy from going down the drain…..And he did exactly what he has done in the Afghan campaign …he went to his subordinates for counsel and action…..And in that they did their job….They made the patient better…..

There is no doubt in my mind, that both Taibbi and Volcker are correct…this whole thing could happen again…tomorrow…..Because there are systemic problems in how the American and world financial systems operate…but Obama isn’t really thinking about that these days….

The fact is the economy is getting better…the banks are ponying up to the Treasury, and paying back their loans….never mind, that for returning the money this fast, they expect the powers to be to let then get their crazy astronomical bonuses, this year….never mind, that the same people who drove us into these problems are still operating at the nations banks, hedge funds, and investments firms……

The fact is Barack Obama is a politician… he promises people one thing…then moves down the rope line, and promises the next group of people something else…..

And while these guys complain, Obama is making decision’s on sending 30,000 more U.S. troops, and 5,000 NATO troops, in harm’s way, while also keeping an eye on a huge Healthcare bill, and making a trip every month out of the country, to hang with the leaders of the worlds most powerful countries, on his own airline, Air Force One….

If there is anything he thinks about, in the economic realm, it’s employment…not structural problems in Wall Street..

….let’m make money …there is another half a billion dollar presidential election campaign starting in a year from now……

……And where do you think some of that money will come from? …….

Ah, yes……..

Update:….more on the piece from the progressives over at mydd.com……

Matt Taibbi calls his President a 'sellout' to Wall Street…….

Matt Taibbi, In a Rolling Stone piece, (his dad is a long time New York NBC reporter ) calls out President Obama for his sell out to the Wall Street..…it’s his keyboard…..but he seems to be echoing the speech Paul Volcker gave in London this week…..that is that…… no innovation was used in making the economy better in the last year…that insiders from the Wall Street gang was placed in charge of the fix……

The piece is long and listened to Taibbi on the POTUS radio one afternoon…and found him convincing…but then I took some time to think over his argument (and Volcker)……..And I realized that there was a few things missing from the reality of his argument…..

Both Taibbi and Volcker expected President Obama, a rookie president, who got at huge problem dumped in his lap, to act in a way that would completely change the system….To deal with the systemic issues, instead of solving the crisis….

A little more than a year ago things were, to put it mildly…..Off the hook….And scary…I never knew how scared these gown white guys with money where until I saw a wonderful PBS special about the crisis….These people where scared s*#tless…..

To expect a President to NOT rely on people who he knew personally , (Geithner and Summers) and the existing Federal Reserve Chair, is out of the question…….Obama did consult Volcker, who stood next to him at the momentous economic press conference the President held upon taking office…but the fact is (as I point out in earlier post) Volcker got named to a committee and then got the door slammed in his face…….

Obama ‘s biggest worry wasn’t really how the damn problem started…he wasn’t an economist…his problem was stopping the whole world economy from going down the drain…..And he did exactly what he has done in the Afghan campaign …he went to his subordinates for counsel and action…..And in that they did their job….They made the patient better…..

There is no doubt in my mind, that both Taibbi and Volcker are correct…this whole thing could happen again…tomorrow…..Because there are systemic problems in how the American and world financial systems operate…but Obama isn’t really thinking about that these days….

The fact is the economy is getting better…the banks are ponying up to the Treasury, and paying back their loans….never mind, that for returning the money this fast, they expect the powers to be to let then get their crazy astronomical bonuses, this year….never mind, that the same people who drove us into these problems are still operating at the nations banks, hedge funds, and investments firms……

The fact is Barack Obama is a politician… he promises people one thing…then moves down the rope line, and promises the next group of people something else…..

And while these guys complain, Obama is making decision’s on sending 30,000 more U.S. troops, and 5,000 NATO troops, in harm’s way, while also keeping an eye on a huge Healthcare bill, and making a trip every month out of the country, to hang with the leaders of the worlds most powerful countries, on his own airline, Air Force One….

If there is anything he thinks about, in the economic realm, it’s employment…not structural problems in Wall Street..

….let’m make money …there is another half a billion dollar presidential election campaign starting in a year from now……

……And where do you think some of that money will come from? …….

Ah, yes……..

Update:….more on the piece from the progressives over at mydd.com……

Ex-Federal Reserve Chairman Paul Volcker is mad……

At the Future of Finance Initiative conference, organized by the Wall Street Journal, in London, the former Federal Reserve Chairman stroke out, asking if anyone understood that the economic down turn that the United States and the world is coming out of was……’ not solved by any financial innovation’ ….and that the United States should bring back the separation of Banking from other financial institutions through the reimposing of the Glass-Steagall Act…..

Volcker going on……’criticized complex financial products that helped lead to economic ruin, such as credit default swaps. He challenged the industry to provide “one shred of evidence” that these financial products are socially useful.’

Volcker has also cautioned that the recovery for the United States will be long and slow…..

This story has ran for several days and highlights something known mostly in the beltway of Washington D.C………Volcker, the Chair of President’s Economic Recovery Advisory Board, hasn’t done much ADVISING for the White House…..

As a matter of fact he’s been shut out in favor of the White house economic players ….Fed Chair Beneneke, Treasury Sec Geithner and White House Economic Advisor larry Summers…..

After his London performance I don’t know if those guys are going to invite him back to building……