The Blame Should Be Placed Squarely Where It Belongs: The Oval Office
The administration's response to the financial crisis has been irresponsible in two respects. One, it has taken the well-being of the biggest institutions as its principal point of reference. Two, its ramshackle approach does little if anything to resolve the structural flaws in the system and their deletorious effects on the general economy (even when banks, hedge funds and investment trusts function on their own distorted terms). The blame should be placed squarely where it belongs: in the Oval Office.
Let's summarize the record. Obama knowingly appointed as his senior officials people who were intimately connected to the old system -- professionally and intellectually. That is one. He exiled Paul Volcker because Volcker had convictions and ideas that ran against the grain of Obama's own thinking. That's two. Obama gave no support to promoters of bankruptcy law reform or a workable program to aid home debtors in risk of foreclosure. That's three. Obama has curried favor with the big boys on Wall Street while savaging the managers of GE and Chrysler. The latter were poor executives but neither dishonest nor calculated schemers at the expense of the public interest. He clearly identifies with the former socially and intellectually. That's four.
The sad conclusion is that Obama, for all the razzmatazz, is a conventional thinker, instinctively deferential to the powers that be, and uncomfortable with those who have both his level of intelligence and convictions about dedication to the commonweal that are foreign to him.
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This is ridiculous. The blame for the financial crisis starts w Reagan and goes through Bush (from a WH perspective). Then look at the Fed. And Congress, particularly during the last Clinton term as they distracted with Monicagate and threw open the barn doors so the thieves had full access.
This is nonsense. I'm not in anyway an Obama supporter, but the blame lies at the feet if congress. It really irritates me when the executive gets credit or blame for something that ultimately does not belong to them. Congress makes laws. Congress provides oversight. Congress allocates money. Obama may have gotten what he asked for from congress, but who's fault is that?
"at the expense of the public interest. " I own and manage my own business. There is not a single day that goes by where I worry about or make decisions that are in "the public interest." It is this core, fundamental belief that has gotten us, and will continue to lead us down, a path of economic instability. I hate to simplify things and make this comment into an Economic Philosophy 101 posting but until the government and media realize that first and foremost businesses are in business to maximize profits with acting in the public interest down at the bottom of the list if on the list at all, expect the current status of the economy to persist.
Actually, it's this kind of "I don't give a crap about the rest of the world" mentality that leads people around the world to starve to death while the rich stockpile their wealth... But, hey, that's somebody else's problem, huh?
Paul Volcker? So the old Reagan retread was supposed to have been our hero? Talk about irony.
Here is a crazy idea: this most recent economic collapse represents the culmination of policies first developed by 'ol Dutch. How about we give the new President more than six months to cleanup over a quarter-century of polluted ideas?
Presidents often run into this type of problem when first taking office; they over rely on the so called "experts" and then get burned. That said, I would still give Obama high marks overall on the economy - Bush left us a big hole to get out of.
Right on!! Obama has kept the same crew in power and has not taken any strong action to stop these bailouts and bonuses. Its the same old kowtowing to Wall St. There are NO excuses for his weak attitude. I had expected better but its just not happening. It is his fault when he continues the same policies that got us into this mess.
Blaming Obama for this mess is like blaming Lincoln for the slave trade. Get a grip. Granted, Obama is maintaining the status quo by retaining and appointing denizens of the same cut who created this train wreck. And getting rid of Volcker was a bad move, for the country, but perhaps not for GS & the like. America loves its criminals. We much prefer The Sopranos to Father Knows Best.
Doesn't the author mean GM (which lost 1 market share point per year for about 30 years...very poorly managed) instead of GE???
Wow,.... It sounds like Obama is screwed, doesn't it? 7 months in office and people already want him on a barbecue spit. Hopelessness runs rampant! We have to also remember that he inherited a boatload of problems from 'He who shall not be named' from Tejas and his 8 years of crap and madness. My major hope for this administration is that something positive will come from all the money being spent and all the 'hope for the future' business, too.
Don't give up the ship quite yet, people!!!
Voting for the TARP bail-out without preconditions, a system of oversight, or accountability was the first big blunder by Bush-Paulson and the compliant Congress. Our money was used for posh junkets, obscene bonuses (paid to the very cretins who brought us the mess) to retain them to fix the problems, for mergers-acquisitions making "too-big-to-fail" institutions even larger, and now to lobby and buy votes that will thwart systematic abuses, protect consumers, and prevent a repeat of the same type of meltdown in the financial sector.
Appointing folks from Goldman-Sachs to head this financial-sector recovery is about as bright as letting Madoff invest the government pension fund or Social Security for us. There are plenty of unemployed economists, accountants and others with MBA's who could do a superior job at a fraction of the cost. Geithner and Summers must have one hell of a job and bonus awaiting them after their tenure.
People of Titanic, this is your Captain speaking. Yes, we have hit an iceberg and our situation is perilous. Let me tell you what we are doing to address the situation.
First off, I have ordered the crew to get into the lifeboats immediately. Some have questioned this decision but let's be clear -- the first goal is to save the ship, and you can't have a functioning ship without a crew. In short, we have done what needs to be done.
Passengers may be wondering what we are doing to help you. First, be assured that I care deeply about your safety. I have asked our cruise director to arrange swimming lessons for all who qualify. Please go to the main dining to pick up an eligibility form. I'm sure you understand that we must prioritize who receives instruction. Obviously, those already in water up to the neck cannot be helped. Likewise, those of you who are completely dry, we ask simply that you remain dry.
All other passengers will be assigned to swimming classes based on their needs with first priority given to those currently in water above the knee but no higher than the waist...
Nicely done.
Captain, this is the boiler room speaking... since we are cut off from joing the rest of our crewmates in the lifeboats, do you have any instructions for us?
Fellow Crewmembers -
First of all, thank you for asking. It is such an honor and privelege to address this distinguished group - the boiler room crew. It's extra special for me because - as you all know - I myself began life in the boiler room. I know it's a hard, hot, and horrible place to work. We've all been there; we've all done that. I know the water's pouring in, the lights are out, the watertight doors are locked shut, and ten floors of hard steel separate you from the outside world.
But at this moment, I've got only two words of advice for you, "no excuses!" Yes, I know some of you will say you've heard that before but it's an important message and you need to hear it again, "no excuses." Trust me. I'm here in the lead lifeboat with the rest of the crew. I've swam the swim we all want to swim. The key to my success, is the key to your success. Repeat afterm metoo, "No excuses." By the way it also helps to have an IQ of 170, a private school education, a Law Degree from Harvard, a few billionaires among your inner circle, and a gift for public speaking... but I can't say this enough something that never helps is excuses. Hate'em. Can't stand'em.
MeDonut, that was priceless, and oh, so, TRUE!!!
“The sad conclusion is that Obama, for all the razamataz, is a conventional thinker, instinctively deferential to the powers that be”
Sad but true. And this has led him to break some campaign promises, and do the exact opposite from what he said on other promises.
From change we can believe in to change conservative corporate America can believe in.
What a shame. This time I really believed We the People had someone in the WH.
Conventional or not Obama is a damm site better than Bush and better than McCain would have been.
so after you critique, your proposed solution to the problem is?
When the patient has 2 broken legs, 2 broken arms, a broken back, 6 broken ribs and is bleeding to death you don't start setting bones right away. You give the patient blood, fix the bleeders and then set the broken bones.
Obama has done what was necessary to save the economy from complete collapse - not just the U.S. economy but the world's economy. After it is stabilized he can go about making necessary changes. I'll reserve judgement unit it becomes patently clear that he is not going to institute better regulatory oversight, etc., to fix the system.
I don't intend to just wash my hands of everything while I wait. I will continue to make it clear to President Obama that I want major changes in the way our financial system is run. But I do realize that Obama doesn't have a magic wand. I wish some other people would wake up to that fact, as well.
"When the patient has 2 broken legs, 2 broken arms, a broken back, 6 broken ribs and is bleeding to death you don't start setting bones right away."
Well, if a patient is bleeding to death, you might consider stopping the hemorrhaging.
If there has been excessive bleeding, you might even consider giving the patient more blood.
You certainly would not follow the advice of ancient physicians who have proven to be wrong and continue to bleed the patient.
And to follow up on kathy001's analogy, if a reckless, speeding driver ran over a pedestrian and caused "2 broken legs, 2 broken arms, a broken back, 6 broken ribs," no sensible and responsible physician would say to the driver:
"Well, I can see that you wrecked your car. Since the patient isn't using his, why don't I give you his car keys and see if that will do you for a while. Sooner or later you'll get that driving problem under control. I hope that you'll drive responsibly, but if you wreck that, I'll understand and I'll give you someone else's keys."
Not to be rude or anything, but when I hear / read people givng their "Here's How..." on the solutions to the country's problems, I wonder why they didn't run for President themselves.
And yeah, here it comes again : Eight years of stuffing our faces with junk foods past the point of morbid obesity - and now, six months on a diet and we ask, "HEY! Why aren't we skinny yet?"
Are you suggesting that the citizens of this country are too stupid to remark upon the efficacy of their own government?! When government becomes too complicated to be understood by its own citizens, it's too complicated to exist.
If the article writer were commenting on the government, you might have a valid argument, but he was singling out one individual without giving any regard to the ones REALLY responsible for the mess in the first place. This article is the same thing as parent showing up to a dirty house where the ones who perpetrated the mess have went off to a party on the beach while the kid that was studying in his room the whole time is getting in trouble for the mess.
Well said, Passenger57.
Good point
You are right except thus mess stated 32 years ago with the community reinvestment act of 1977. Other than that you are spot on. In spite of what my fellow conservatives might have you believe Obama does not have a magic wand he can just wave to fix everything. And even if he has the right solutions he still has a congress full of schleps to deal with.
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