Frank Rich: White House Doesn't Seem To Understand Public's Wall Street Rage

New York Times:

The Obama administration does not seem to understand that this rage, left unaddressed, could consume it. It has pushed aside the entreaties of many -- including Paul Volcker, the chairman of the White House's own Economic Recovery Advisory Board -- to break up too-big-to-fail banks. Those behemoths, cushioned by the government's bailouts, low-interest loans and guarantees, are back making bets that put the entire system at risk.

Read the whole story: New York Times

Comments

[MillinMn]

I'm a professor in a business college, and I am outraged at how financial reform has failed to materialize. I fear we have a bipartisan - too bought to do the right thing - problem going on in Congress. Wall Street interests are even more in bed with our elected representatives than Big Pharma is, and Big Pharma is running over our Congress on health care reform.

If health care reform and financial markets reform fail, I vote 3d party next time. What's the point in re-electing people who act as shadow Republicans?

[dsws]

They're better than Republicans on lots of issues. Nothing wrong with voting third party, but it won't do much against entrenched powers like the financial industry. That would take years of sustained organizing, strategy, donating and volunteering in primaries, and so on.

[StellaRay]

As usual, Rich makes some excellent points. He is really quite brilliant and never fails to back himself up with enough facts and perspective to make you think hard about what he writes.

Still, I also think entirely too much has been made out of last week's sparse elections, by all sides, all pundits and all of the media. Seems to me we are all desperate for a chrystal ball, somewhat put out that with our 24/7 news cycle and our far reaching internet, we still must wait for much to be revealed. Instead of patience, we have taken to reading tea leaves.

And when I say we have no patience, I refer to the fact that I have NEVER in my lifetime seen a president submitted to such minute by minute analysis. Yes, we are in a world of hurt in this country, most of it the inheritance, not the result of the current administration. It took almost a decade to come out of the depression, almost a decade to undo the wrongs done by the Hoover administration.

I think FDR would never have achieved his great successes in today's world. We would't have given him the time. We live in an age of acceleration that is blurring everything and leaving us all with the patience of a five year old.

[moongal6]

Agreed. Fanned and faved.

[confuseddemocrat]

No one is so unrealistic to think that the administration will solve the economic crisis in 10 months....

But what is being overlooked in the discussion is that there is a communication and priority problem

The difference between FDR and the current administration is that FDR could be seen actively pushing through pieces of legislation that were clearly aimed at reducing unemployment through infrastructure enhancement projects

The stimulus package only tangentially touched on job creation and infrastructure development ... AND after the stimulus passed the job issue was dropped and administration went straight into HC reform

During that time unemployment rate continued to rise (surpassing what was promised by the Dems) and nothing was said except for "wait for the stimulus and that unemployment is a lagging indicator"

And that is where the crux of the perception problem comes from....these words and actions provide little solace to the 17-20% of Americans who are unemployed or underemplo­yed.......­.

[StellaRay]

The congress that you say FDR could "be seen actively passing legislation through" was of a considerably different complextion than the one Obama faces. The GOP of that day actually crossed the aisle frequently with their votes and made it possible to wheel and deal. (Read up on this, you'll be amazed how much bi-partisan support was available to FDR, and still it took till 1937 for the econcomy and employment to show true signs of recovery)

As you know, that is not possible with today's GOP. No amount of wheeling and dealing will coax anything but a no out of them. Do you really think they'd allow a huge government employment program agenda? Hec, they're in apoplexy over a health care reform. And the fact that the dems have the majority is irrelevant when a good percentage of them are really moderate republicans.

I lived through the recession of the early eighties and it was just as bad. 17,000
businesses failed, farmers lost their land and the homeless population swelled. Regan's approval rating hit rock bottom. But by the 84 election the economy had righted itself and he was re-elected.

My point is some things take time, and yes, a bit of luck. I don't agree with everything Obama has done, but I also don't agree with those who think he's done nothing and those who think he's had plenty of time to turn this baby around.

[Appleblossom]

Way back in 1933, things were different. There had not been the Great Society perceived failures (the GS programs actually worked for the most part as advertised) and the Conservative Revolution against government intervention. Nor did FDR have to depend as much on Wall Street as later presidents and Congresses have had to do for campaign financing.
Still, President Obama knows what needs to be done in the finance sector and while I can understand that he has to tackle each major issue separately, there is still plenty that he can do now.

Why did he not get unaffiliated players for the Treasury and other posts I have no idea.

[lagunabeach]

The republican plutocrats have brought our country to its knees. The middle class is now the working poor; the rich people and corporations hoard all the money. Our infrastructure is crumbling. People can't find work. The safeguards put in after the depression of 1929 have been gutted.

Obama had the perfect moment to restore order and accountability to the financial system and he hasn't seemed to have done anything of significance except give billions and billions of American's hard-earned tax dollars to the same corporations that got us into this mess.

It's more than a matter of restoring order and accountability to a system corrupted by self-interest; it's a matter of fairness--the game seems to be tilted to the corporations' favor and Obama is starting to appear to be another one of the many politicians looking out for Corporate America's best interests at the expense of the interests of most Americans..

[gparks]

Uuuhhh it was Bush that gave us Tarp ...om his way out the door ... I know that is hard to remember.

[confuseddemocrat]

Yes Bush presided over the biggest taxpayer mugging in the history of our nation...but the Dems were also complicit.....

Problem is that half that TARP money was used by Geithner.....and he failed to attach strings to the money.....

.Banks should have been forced to lend a portion of that TARP money to small businesses rather than allowing them to have "carte blanche" usage with little oversight

Much of the money was used to fund foreign banks and to acquire other institutions, thereby creating even larger "to big to fail banks"

[robjh1]

To add to my recent comment, you would have to have the IQ of an idiot to think or expect the economy to be turned around by now. It's just not realistic or common sense. Oh well the death of common sense.

"and we are not saved..."

[robjh1]

All this talk about the electinon being a referendum against the President and the Democrats is simply bullsh*t!!! Let's call it for what it really is _ a mid-term election. What party hasn't suffered such a defeat?

"and we are not saved..."

[confuseddemocrat]

It is not so much that it was a referendum on Obama...but rather a sampling of voter sentiments

There is real anger against DC, Wallstreet and pols.....because the Dems have not gotten ahead of these sentiments...they risk being steamrolled........

Somehow there is an unwillingness by Dem leadership to acknowledge that there is a rising wave of populist rage coupled with an anti-incumbency, anti-politician movement developing among voters...

[gparks]

Don;t you mean Fox has given these nuts MORE tv time? Their numbers HAVE been dropping ....what's the number of people self-ID as Repubs .... 19% or less. Oh that's right ... we are to take teabagge/foxr numbers and not the fire/police department numbers for attendence to these "meetings"

[Kiabell04]

What referendum?! Folks are acting as if 25 states elected GOP candidates. Stop acting like a bunch of friggin drama queens. Frank Rich needs to shove it.

[Gretel1or2]

I agree. The biggest "referendum" if there ever was one is the election of a democratic candidate for the NY23rd district which has not seen a democrat within a century.

[cbat]

What amazes me is all the people who are in such an uproar of what Obama has not done yet, that you cannot see what he has already done.

Where was all the outrage when Bush was selling us out to wall street, bailing out banks, not creating jobs. Where was all the outrage when Bush was spending gov money like there was no tomorrow. It took 8 years for the Bush admin to screw this country and now Obama is expected to clean it up in less than year. Grow up people.

[Kiabell04]

Cbat, I agree!

[tbone99]

That outrage was there and it was what put Obama into office. However he has spent more time pandering to Wall St, hopeless bipartisianship and wooing Repugs than he has in trying to give us something different than the last 8 years.

His financial appointees are engaged in more corporate asskissing than any right wing Repug would dare to display .He has spent money helping the financially stable with things like $8000 rebates to buy the homes of the newly evicted , new car discounts ,( again to the financially stable yet neglecting the victims of corporate greed and criminality -the jobless, the evicted, the bankrupt and the new homeless.

His promise to health denying insurance companies to coldcock single payer while delivering them millions more in government mandated customers is representative of his intent to deliver the citizenry for dinner to the corporate sector.
Time is not the issue - the numerous Goldman Sachs agents in his administration make quite clear his goals.

[Gretel1or2]

cbat is correct. The outrage about Bush did not start after 10 months, otherwise Bush ,who was already 4 years into his presidency when he ran against Kerry, would not have won the 2004 elections. Be honest here. There is a serious double standard and you know it.

[StellaRay]

"His financial appointees are engaged in more corporate asskissing than any right wing Repug would dare to display"

C'mon now. I now this rolled off your fingers with righteousness but give me a freaking break. Do you really think Obama's administration is more in the pocket of big business than the republicans are? Really? I'm going to give you the benefit of the doubt and assume you got carried away.

[NJProgressiveIndie]

Thank you! Given the same opportunity, I wonder how quickly President Obama's detractors and critics could pull this country out of the world-class mess it took 8+ years to create.

[confuseddemocrat]

At the time people were semi-employed, living off of easy credit and were using their homes as ATMs.....
Now they no longer have the jobs, equity, the money nor the credit...so now the economy is at the forefront

Everyone agrees that the GOP wrecked the economy, the problem is that there have not been any tangible job creation efforts as well as strong economic reform coming from the current administration

Furthermore...there is a priority deficit with regards to what the Dems thinks is the most important versus what the average Joe is worrying about....

the first concern among voters is the economy and Jobs.....spending five months solely discussing HC reform ...produces the perception of the Dems are of touch with the average voter

Word to the wise .......if the unemployment numbers do not recede before Sept 2010......the DEMS will experience a significant bruising and HC reform will not rescue them....that is the dirty little secret ......

[moongal6]

The last time unemployment topped over 10% was 1983, over two years into Rayguns administration. And, according to the cons, he was their g*d. So, lets cut him some slack since it has only been 10 months.
Here is a link so you can check how President Obama is doing with his campaign promises.

http://www.politifact.com/truth-o-meter/promises/browse/

[gparks]

Hey cbat ... who knew ....these folks REALLY want a "magic" person im the WH. They are the "instant" coffee and tea crowd ... microwave speed ... but to hear them tell it .... Bush/Cheyne's slow 8 year screw up of the economy and the world ... was not that bad. I want my country back! is the cry.

[cbat]

For those fairweather dems wo are threatening to stay home in 2010 or 2012 or voiting republican, stay home and when the Republicans get back into office, screw this country again, then who are going to blame, Obama or yourself.

See this is where Dems do not learn the lessons of the past. Republicans are like vampires they can smell blood and dissent. They will use this so-called disappointment and lack of patience (less than a year) some of you have with Obama, they will use it against us and we will again fall for the great republican lie.

Republicans do NOT know how to govern, they never had, but they know how to win elections, Dems and independents will be their next victims in 2010.

Some of you are so quick to make a political point, that are willing to sell out this country to the Republicans again. The republicans will not magically become some new party in 2010 or 2012, they are who they are.

Just imagine for one moment if more us chose not to stay home when Bush was elected(despite the cheating), just think how many American lives and jobs would have been saved.

[tbone99]

When you are being raped , does it really matter if the perp is a Dem or a Republican?

[Gretel1or2]

Well why don't you run for office - that way we can be assured that we won't get raped.

[gparks]

tbone ... without any doubt the rappist has been Repubs ...the dems left a surplus which Bush gave to the rich via tax cuts ... 2 wars ... no-bid contracts ... tarp etc

[Eartha]

tbone speaks the truth.

[confuseddemocrat]

Whether ardent Obama supporters understand it or not .....or whether they wish to ignore it .... Independents as well as middle America are moving away from the Democratic party........

Why? By spending the past six months talking only about health care, coddling the Banksters and fighting petty battles with Faux and Rush....the public has begun to believe that the Dems don't share their concerns....which is jobs, housing, high credit cards interest rates, Wall street malfeasance and jobs again or the lack there of....

How many times have the Dems talked about Jobs creation outside of echoing the party line that the "stimulus package will save or create" jobs or claiming that "unemployment is a lagging indicator"? Compare that to the time spent talking about health care reform......

Now look at all those reports of rising unemployment and foreclosures.......

When People are hurting and and scared about losing their jobs or are struggling to meet their payments or are overworked and stressed out over of financial difficulti­es......th­ey want answers, they want to see their representatives talking about their worries and actively producing legislation to help them.....

AND when they see the DEMS failing to respond aggressively or only offering cliches ....they become disenchanted and angry

It is all about perception folks.....­.........A­ND PERCEPTION IS REALITY.....

[cbat]

Please speak for yourself. I do not know where you been for the last 9 months, but Obama admin has been addressing these issues, from the Recovery reinvestment (stimulus) act to the recent bill Obama signed this month for homeower credit benefits and extension of employment benefits. You are talking about pity media created issues. Healthcare is a massive legislation of course it is going to get the most attention. I know a lot of people who are grateful that dems are trying to bring healthcare reform.

Whether you think these programs are going to be successful or not, this so-called anger is misplaced, because dems are trying to make changes, Republicans are the ones who blocking progress. You might want to do some research

[Tinsdale]

What this administration needs is an "Intervention" not "Enablement."
The fact that there are many Obama supporters that are disillusioned with the current track and trend of this administration should be a cause for deep concern among those hoping for an Obama successful first term and re-election to a second term.

Perception is reality in politics.It is not helpful that President Obama appears to be disengaged and lacking the passion he displayed in his campaign.

Circling the wagons around the President and making excuses for his Wall Street largess, the gutting of SOX, Goldman-Ka­shkari-Pau­lson-Geith­ner-Summer­s.etc. is not going to win the 2010 and 2012 elections. We wanted Obama to BECOME our President. Now, we expect him to BE a President.

[gparks]

cbat ...Confused is accuratly named!

[Kiabell04]

Your screenname speaks for itself. You ARE confused.

[HeartT]

And the media understands? I think not. What gets me about this and other writers on the President is that none of them focus on what he has done. The reports and comments are always about what the opposition wants. There isn't a fair and balanced reporter out there.

[gosolar]

"thin gruel." Such great writing, Mr. Rich.

[pbley68]

If it was a rebellion or protest vote against the system, why the hell did they vote for the GOP?

[ncmom54]

not all of them voted GOP...but did vote for change
http://www.charlotteobserver.com/480/story/1042028.html

[cbat]

What I find interesting are the quick judgements people are making less than a year in Obama's president, but Bush got a pass during his first 4 years and then was elected (cheated) twice. Obama has done more in 9 months than Bush did in is first two years.

[Tinsdale]

Based on his presence and the gifts that President Obama displayed in his electrifying campaign, supporters had the right and the expectation that he would accomplish much more than Bush.

Many hoped for an FDR first 100 Days, when there were 15 major pieces of innovative and game changing legislation passed, that was not a fair or realistic standard. One major and important difference in perception: FDR's actions fought for the "Forgotten Man" while, in contrast, President Obama seems to be supporting the "Fortunate Few."

[confuseddemocrat]

AND this perception comes mostly from the behavior and tone-deafness of Geithner and Summers

The mere fact that Summers had to be arm-twisted into supporting an extension of unemployment benefits says it all................

[cbat]

What I find interesting are the quick judgements people are making less than a year into Obama's president, including the so-called Obama supporters, but Bush got a pass during his first 4 years, given the benefit of the doubt and then was elected (cheated) twice. WTF.

Obama has done more in 9 months than Bush did in is first two years.