After the Senate passage of the Wall Street "reform" bill, the political hype industry has amped itself up to 11.
Under the headline "A Progressive Agenda to Remake Washington," the New York Times makes a desperate lunge for links from the Democratic blogosphere, gushing that "With the Senate's passage of financial regulation, Congress and the White House have completed 16 months of activity that rival any other since the New Deal in scope or ambition."
The hagiography echoes the Obama campaign press release that just hit everyone's email box -- the one that declares the passage of this bill "proved again that the strongest special interests, who for so long have called the shots in Washington, can be beat."
"When the lobbyists pushed for loopholes and exemptions just before a final vote, you did not relent -- and we fought them off," thunders the Organizing for America agitprop.
The problem with 11, of course, is that volume cannot hide piss poor quality. Spinal Tap's songs, no matter how loudly played, were quite awful (hello, Cleveland!). And Wall Street "reform" legislation, no matter how much the Democratic Party, the servile Washington press corps and the Democratic-aligned "progressive" media screams the contrary, is the offensive punchline to a bad joke.
Here's the real story from Slate's Daniel Gross -- the story that no amount of speaker-blowing noise can hide:
Some of Wall Street's most absurd prerogatives and loopholes are left untouched. This bill doesn't address carried interest, the absurd state of affairs under which private equity and hedge funds get to pay capital-gains tax rates on profits they make managing money for other people...The bill that's emerging doesn't tax trading, doesn't force the industry to fund its own recklessness in advance, preserves vital tax breaks, and puts consumer protection under the auspices of the Federal Reserve, a generally conservative institution.
This is the truth beneath the volume -- the terrible power chords and missed drum beats below the propaganda's aural onslaught. Give the band credit, of course -- they're straining to put on an entertaining show. Senators like Jon Tester, after voting against amendments that would have capped banks size, are now bellowing into the microphone that they supposedly ended "too big to fail." And much of the Democratic activist crowd, ear drums long ago completely blown out, will hold up flickering lighters and cheer them on.
But remember what Spinal Tap taught us: Just because the music is played at 11, doesn't mean it's good -- nor does it mean it's even music. It's the same axiom when it comes to legislative "reform" -- the volume of the celebration doesn't mean it's good, nor does it mean it's even "reform." In fact, it quite often means exactly the opposite -- volume is used to obscure, rather than amplify, a subpar product.
Follow David Sirota on Twitter: www.twitter.com/davidsirota
This topic absolutely needs to have some sunlight let in. There are still too many loopholes and conditions left in and dictated by the very institution it's meant to regulate and reform.
The more we know and learn, the more-better reform we can demand from our elected reps.
@peaceandfreedom :
I don't need to refute any facts. You need to deliver some of your own. What you ranted there was about as non-specific as this article was specific. All populistic hot-air, and almost lacking in relevance.
The moment you stated "absolutely nothing of value", you invalidate all the good that his reform still DOES do...
What this article talks about are the remaining bits which still need addressing. Those diminish the overall good of the reforms, but there are still plenty that are included and much needed.
I would love it if this author could do a follow up piece showing those as well, and possibly compare "the good, the bad, and the ugly..."
Then you'd see it isn't all polarized to one side as you would like to make it seem.
I would like, just once, to see all the Obama faithful trying to refute your facts, rather than engaging in their mutual self-pleasuring while singing his praises in denial of reality.
This man has gotten us absolutely nothing of value in his short stint as president.
But he HAS gotten plenty done for his real constituency on Wall Street.
i agree this stuff needs to be front and center
Not in agreement with the notion that the "blame" for the legislation falls with President Obama only. He doesn't write the legislation. The "blame" for that falls squarely with the House and Senate.
THe President may sign something to get even "partial" reforms in place, rather than none at all, or he may send it back for a "strengthening" round. To represent this as an "Obama thing" in its entirety is pretty disingenuous...
In terms of what it does, putting Consumer Protection under the Fed is like asking my dog to guard the steaks. The Fed acts every day facilitate the activities of its clients - the financial institutions. It really has no concept of "consumers". No concept personally, as the top guys at the Fed and even the workers live and smooze in their own bubble of privilege.
There is also a direct conflict at times between what banks want and what the consumer needs - not even clear the Fed could conceive of such conflicts much less handle them fairly.
Financial reform is as big a crock as Health Care Reform.
How about something we COULD get? NO MORE PENNY ... say it again ... NO MORE PENNY ... etc.
We increase "hope" by writing our elected reps in congress with demands for inclusion of Glass-Steagal, etc. Hold their feet to the fire. Show that we understand what's in the bill, and at stake.
Most reps are actually working in our interest. The problems usually come from the majority of us showing a complete lack of attention and interest.
A few thousand constituent phone calls will reverse that perception and move the bill in a better direction.
It just works that way.
Bad music? Eleven wasn't to cover up bad music, it was that "little more to push you over the edge." I like your work, but learn your Tap before you use it in your article.
"No, we're not going to f&^#ing play Stone Henge."
Nigel Tufnel is a musical genius!
I have to hold my nose when I do it, but I vote for working class interests. Maybe someday I won't have to hold my nose, that's my hope.
Or, set aside "hope" and press your elected reps to do it RIGHT. Gather support for it, make those phone banks light up.
It works. Really it does.
Hellhole - Big Bottom - Give Me Some Money - All The Way Home - don't try to write those at home...