Best of the Week
Most Popular
1. Gold vs Cash in a Financial Crisis - Richard_Mills
2.Current Stock Market Rally Similarities To 1999 - Chris_Vermeulen
3.America See You On The Dark Side Of The Moon - Part2 - James_Quinn
4.Stock Market Trend Forecast Outlook for 2020 - Nadeem_Walayat
5.Who Said Stock Market Traders and Investor are Emotional Right Now? - Chris_Vermeulen
6.Gold Upswing and Lessons from Gold Tops - P_Radomski_CFA
7.Economic Tribulation is Coming, and Here is Why - Michael_Pento
8.What to Expect in Our Next Recession/Depression? - Raymond_Matison
9.The Fed Celebrates While Americans Drown in Financial Despair - John_Mauldin
10.Hi-yo Silver Away! - Richard_Mills
Last 7 days
Stock Market Critical Price Level Could Soon Prompt A Big Move - 25th May 20
Will Powell Decouple Gold from the Stock Market? - 25th May 20
How Muslims Celebrated EID in Lockdown Britain 2020 - UK - 25th May 20
Stock Market Topping Behavior - 24th May 20
Fed Action Accelerates Boom-Bust Cycle; Not A Virus Crisis - 23rd May 20
Gold Silver Miners and Stocks (after a quick drop) Ready to Explode - 23rd May 20
3 Ways to Prepare Financially for Retirement - 23rd May 20
4 Essential Car Trade-In Tips To Get The Best Value - 23rd May 20
Budgie Heaven at Bird Land - 23rd May 20
China’s ‘Two Sessions’ herald Rebound of Economy - 22nd May 20
Signs Of Long Term Devaluation US Real Estate - 22nd May 20
Reading the Tea Leaves of Gold’s Upcoming Move - 22nd May 20
Gold, Silver, Mining Stocks Teeter On The Brink Of A Breakout - 21st May 20
Another Bank Bailout Under Cover of a Virus - 21st May 20
Do No Credit Check Loans Online Instant Approval Options Actually Exist? - 21st May 20
An Eye-Opening Perspective: Emerging Markets and Epidemics - 21st May 20
US Housing Market Covid-19 Crisis - 21st May 20
The Coronavirus Just Hit the “Fast-Forward” Button on These Three Industries - 21st May 20
AMD Zen 3 Ryzen 9 4950x Intel Destroying 24 core 48 thread Processor? - 21st May 20
Dow Stock Market Trend Analysis and Forecast - 20th May 20
The Credit Markets Gave Their Nod to the S&P 500 Upswing - 20th May 20
Where to get proper HGH treatment in USA - 20th May 20
Silver Is Ensured A Prosperous 2020 Thanks To The Fed - 20th May 20
It’s Not Only Palladium That You Better Listen To - 20th May 20
DJIA Stock Market Technical Trend Analysis - 19th May 20
US Real Estate Showing Signs Of Covid19 Collateral Damage - 19th May 20
Gold Stocks Fundamental Indicators - 19th May 20
Why This Wave is Usually a Market Downturn's Most Wicked - 19th May 20
Gold Mining Stocks Flip from Losses to 5x Leveraged Gains! - 19th May 20
Silver Price Begins To Accelerate Higher Faster Than Gold - 19th May 20
Gold Will Soar Soon; World Now Faces 'Monetary Armageddon' - 19th May 20
Gold Mining Stocks Fundamentals - 18th May 20
Why the Largest Cyberattack in History Will Happen Within Six Months - 18th May 20
New AMD Ryzen 4900x and 4950x Zen3 4th Gen Processors Clock Speed and Cores Specs - 18th May 20
Learn How to Play the Violin, Kids Activities and Learning During Lockdown - 18th May 20
The Great Economy Reopening Gamble - 17th May 20
Powell Sends a Message With Love for Gold - 17th May 20
An Economic Renaissance Emerges – Stock Market Look Out Below - 17th May 20
Learn more about the UK Casino Self-exclusion - 17th May 20
Will Stocks Lead the Way Lower for Gold Miners? - 15th May 20
Are Small-Cap Stocks (Russell 2k) Headed For A Double Dip? - 15th May 20
Coronavirus Will Wipe Out These Three Industries for Good - 15th May 20
Gold and Silver: As We Go from Deflation to Hyperinflation - 15th May 20

Market Oracle FREE Newsletter

Coronavirus-stocks-bear-market-2020-analysis

Are the Democrats Fighting the Banks?

Politics / Credit Crisis 2009 Dec 18, 2009 - 01:09 AM GMT

By: Shamus_Cooke

Politics

Best Financial Markets Analysis ArticleHow pathetic. President Obama sat at a table surrounded by super rich bankers, pleading with them to lend money to small businesses and workers. The media mislabeled Obama’s groveling as “encouraging,” “imploring,” and “pressing,” but a man who refuses to take action is powerless; and powerless people can only beg.


This disgraceful meeting happened shortly after Obama got “radical” on national TV, calling the bankers “fat cats” and other tough words. But words are only that.

In reality, Obama’s sudden attitude with the banking aristocracy is a shallow attempt to re-brand himself, since the American public now sees him for what he is: a willing tool of the banks, military, and the super-rich in general.

Congress, too, tried to re-cast its image with the banks recently. Like the White House, most American workers now understand the two-party system to be an extension of corporate America. Congress was thus pushed to act. What little pushing was done was quickly pushed back by the banking lobby.

The House of Representatives passed a tough-sounding but toothless banking regulation bill, which was watered down with $300 million plus in lobbying [bribing] from the big banks.

The passage of the bill in the House barely startled Wall Street, but there is still more bribing to be done in the Senate. The Chief Executive of a powerful banking lobby, Timothy Ryan, told the Wall Street Journal that “we believe there can be additional improvements in the Senate.” (December 12, 2009).

In reaction to Wall Street’s blatant purchasing of Congress, Obama’s chief economic adviser, Lawrence Summers, play-acted the best he could: “For $300 million to be spent on lobbyists trying to gut serious efforts at financial reform is not how this country should be operating.” Well, of course. But nothing is going to be done to stop this legalized buying of legislation. Nothing is going to be done to change anything.

A number of U.S. academics have sharply denounced the incredible corruption operating inside of the White House and Congress. They correctly view the banking industry as having an iron grip on American politics — a grip that needs to be smashed. A professor of economics, William Black, was recently quoted in The New York Times railing against the banks:

“To end the plunder we must break the systemically dangerous institutions’ [banks] power and the culture of fraud and impunity that supports it. This is sound economics, criminology, law, political science and ethics — and Americans support this policy.”

Well said. But how?

It should first be noted that the Obama administration is supporting an incredible myth that is boosting the banks’ image with the public. The media claims that, because some banks are re-paying the TARP bailout money, they should now be able to do whatever they want — including paying executives millions of dollars, buying Congressmen, hoarding, speculating, not lending to the public, etc.

The TARP bailout program is only a small portion of the entire bailout funds, which continues to be administered by the FDIC and Federal Reserve through taxpayer money. This larger bailout program — which could amount to trillions of dollars — is being done in complete secrecy. Recent legislation to audit the Federal Reserve has stalled (lobbyists again). The banks continue to wallow in public money that they use to further enrich themselves. Meanwhile, public officials do nothing but chat.

But action is needed. American workers would easily support a heavy tax not only on bank bonuses, but bank CEO’s, and especially the bank shareholders (owners). Taxing this group at 90% would give billions for a national jobs program, while helping to reduce the national deficit. It would also show the bankers who’s boss.

However, if they still refuse to lend money, additional measures could be taken. The government could take over the banks and run them as public utilities. The only losers here would be the billionaire shareholders.

The winners would be the hundreds of millions of people who would benefit by having their home and credit card loans re-negotiated; the small businesses who could be given cheap loans; and the unemployed, who could have a real jobs program — which includes not only investments in earth-friendly energy investments, but a rebuilding of America’s infrastructure.

Finally, another big lie must be addressed. It is false when Obama claims that, “ultimately in this country we rise and fall together; banks and small businesses, consumers and large corporations.”

American workers have seen shareholders make billions of dollars as wages have steadily lowered. Banks have also made billions of dollars off student loans, credit card bills, and shady mortgages, only to be bailed out by taxpayer money. We are not “in this together.”

A tiny portion of the American population has gotten incredibly rich off the backs of America’s workers and poor. This fact must be the basis for any solution to the present crisis. Those who’ve made billions before the recession, and continue to profit off the broken economy that they helped destroy, must be forced to relinquish their power so that the majority of working people can democratically decide to fix it.

If this isn’t done, then American workers and the unemployed will continue to pay for the crisis. Social services — Medicare, social security, unemployment benefits, public education, etc. — will be gutted. Wages will continue their downward spiral. This is the solution promoted by the super-rich and their loyal representatives, the Democrats and Republicans.

It’s us vs. them. So it's time to shift into high gear, organize ourselves, and demand that the government start operating in our interests.

Shamus Cooke is a social service worker, trade unionist, and writer for Workers Action (www.workerscompass.org).  He can be reached at shamuscook@yahoo.com

Shamus Cooke is a frequent contributor to Global Research.  Global Research Articles by Shamus Cooke

© Copyright Shamus Cooke , Global Research, 2009

Disclaimer: The views expressed in this article are the sole responsibility of the author and do not necessarily reflect those of the Centre for Research on Globalization. The contents of this article are of sole responsibility of the author(s). The Centre for Research on Globalization will not be responsible or liable for any inaccurate or incorrect statements contained in this article.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules