Best of the Week
Most Popular
1. US Housing Market Real Estate Crash The Next Shoe To Drop – Part II - Chris_Vermeulen
2.The Coronavirus Greatest Economic Depression in History? - Nadeem_Walayat
3.US Real Estate Housing Market Crash Is The Next Shoe To Drop - Chris_Vermeulen
4.Coronavirus Stock Market Trend Implications and AI Mega-trend Stocks Buying Levels - Nadeem_Walayat
5. Are Coronavirus Death Statistics Exaggerated? Worse than Seasonal Flu or Not?- Nadeem_Walayat
6.Coronavirus Stock Market Trend Implications, Global Recession and AI Stocks Buying Levels - Nadeem_Walayat
7.US Fourth Turning Accelerating Towards Debt Climax - James_Quinn
8.Dow Stock Market Trend Analysis and Forecast - Nadeem_Walayat
9.Britain's FAKE Coronavirus Death Statistics Exposed - Nadeem_Walayat
10.Commodity Markets Crash Catastrophe Charts - Rambus_Chartology
Last 7 days
The Beatings Will Continue Until the Economy Improves - 6th Jul 20
The Corona Economic Depression Is Here - 6th Jul 20
Stock Market Short-term Peaking - 6th Jul 20
Gold’s Major Reversal to Create the “Handle” - 5th July 20
Gold Market Manipulation And The Federal Reserve - 5th July 20
Overclockers UK Custom Build PC Review - 1. Ordering / Stock Issues - 5th July 20
How to Bond With Your Budgie / Parakeet With Morning Song and Dance - 5th July 20
Silver Price Trend Forecast Summer 2020 - 3rd Jul 20
Silver Market Is at a Critical Juncture - 3rd Jul 20
Gold Stocks Breakout Not Confirmed Yet - 3rd Jul 20
Coronavirus Strikes Back. But Force Is Strong With Gold - 3rd Jul 20
Stock Market Russell 2000 Gaps Present Real Targets - 3rd Jul 20
Johnson & Johnson (JNJ) Big Pharma Stock for Machine Learning Life Extension Investing - 2nd Jul 20
All Eyes on Markets to Get a Refreshed Outlook - 2nd Jul 20
The Darkening Clouds on the Stock Market S&P 500 Horizon - 2nd Jul 20
US Fourth Turning Reaches Boiling Point as America Bends its Knee - 2nd Jul 20
After 2nd Quarter Economic Carnage, the Quest for Philippine Recovery - 2nd Jul 20
Gold Completes Another Washout Rotation – Here We Go - 2nd Jul 20
Roosevelt 2.0 and ‘here, hold my beer' - 2nd Jul 20
U.S. Dollar: When Almost Everyone Is Bearish... - 1st Jul 20
Politicians Prepare New Money Drops as US Dollar Weakens - 1st Jul 20
Gold Stocks Still Undervalued - 1st Jul 20
High Premiums in Physical Gold Market: Scam or Supply Crisis? - 1st Jul 20
US Stock Markets Enter Parabolic Price Move - 1st Jul 20
In The Year 2025 If Fiat Currency Can Survive - 30th Jun 20
Gold Likes the IMF Predicting a Deeper Recession - 30th Jun 20
Silver Is Still Cheap For Now - 30th Jun 20
More Stock Market Selling Ahead - 30th Jun 20
Trending Ecommerce Sites in 2020 - 30th Jun 20
Stock Market S&P 500 Approaching the Precipice - 29th Jun 20
APPLE Tech Stock for Investing to Profit from the Machine Learning Mega trend - 29th Jun 20
Student / Gamer Custom System Build June 2020 Proving Impossible - Overclockers UK - 29th Jun 20
US Dollar with Ney and Gann Angles - 29th Jun 20
Europe's Banking Sector: When (and Why) the Rout Really Began - 29th Jun 20
Will People Accept Rampant Inflation? Hell, No! - 29th Jun 20
Gold & Silver Begin The Move To New All-Time Highs - 29th Jun 20
US Stock Market Enters Parabolic Price Move – Be Prepared - 29th Jun 20
Meet BlackRock, the New Great Vampire Squid - 28th Jun 20
Stock Market S&P 500 Approaching a Defining Moment - 28th Jun 20
U.S. Long Bond: Let's Review the "Upward Point of Exhaustion" - 27th Jun 20
Gold, Copper and Silver are Must-own Metals - 27th Jun 20
Why People Have Always Held Gold - 27th Jun 20
Crude Oil Price Meets Key Resistance - 27th Jun 20
INTEL x86 Chip Giant Stock Targets Artificial Intelligence and Quantum Computing for 2020's Growth - 25th Jun 20
Gold’s Long-term Turning Point is Here - 25th Jun 20
Hainan’s ASEAN Future and Dark Clouds Over Hong Kong - 25th Jun 20
Silver Price Trend Analysis - 24th Jun 20
A Stealth Stocks Double Dip or Bear Market Has Started - 24th Jun 20
Trillion-dollar US infrastructure plan will draw in plenty of metal - 24th Jun 20
WARNING: The U.S. Banking System ISN’T as Strong as Advertised - 24th Jun 20
All That Glitters When the World Jitters is Probably Gold - 24th Jun 20
Making Sense of Crude Oil Price Narrow Trading Range - 23rd Jun 20
Elon Musk Mocks Nikola Motors as “Dumb.” Is He Right? - 23rd Jun 20
MICROSOFT Transforming from PC Software to Cloud Services AI, Deep Learning Giant - 23rd Jun 20
Stock Market Decline Resumes - 22nd Jun 20
Excellent Silver Seasonal Buying Opportunity Lies Directly Ahead - 22nd Jun 20
Where is the US Dollar trend headed ? - 22nd Jun 20
Most Shoppers have Stopped Following Supermarket Arrows, is Coughing the New Racism? - 22nd Jun 20

Market Oracle FREE Newsletter

AI Stocks 2020-2035 15 Year Trend Forecast

Financial Crisis Continues to take its toll on the Obama Administration

Politics / US Politics Oct 08, 2010 - 08:46 AM GMT

By: Danny_Schechter

Politics

Best Financial Markets Analysis ArticleRegardless of his actions, the financial crisis continues to take its toll on the Obama administration.

WASHINGTON DC: (Al Jazeera)  With the midterm election less than a month away and the economic crisis unabated, the Obama Administration may be at a crossroads.


The President’s own advisor, former Federal Reserve Chairman Paul Volcker says the financial system is “broken.” High unemployment is not dropping and home foreclosures are up. The Obamacrats are being blamed for the economic downturn and the economy has become ‘the issue’ of the November midterm elections.

The signs of an economic recovery are hard to see, and tensions with China, a leading trade partner, may be on the cusp of a trade war. Add to this the trillions poured into two wars we are not winning, and you have the elements of a perfect storm that some fear could lead to a depression or even a systemic collapse.

With the President’s popularity slipping and his opposition surging, (at least in the media if not in the streets) the Democrats are expected to lose many seats, if not, control of the Congress. Some in his party have been reduced to arguing, ‘we may not be great, but we are better than the other guys.’ There is an anti-incumbent mood in both parties and the rhetoric (but not yet the reality) of revolution is motivating parts of the electorate on both sides. 

In the White House, the President has become more of a manager than a militant:  initially trying to please all sides with appeals to bi-partisanship, and later with programs to placate the military and Wall Street. 

Wall Street helped fund Obama’s 2008 victory. He seems to have believed that policies that would support and even enrich the private sector would lead to more job creation and cooperation.

That didn’t happen - and now more and more billionaires are funding the Republicans with no pretense to promoting equality or help for the middle class. The greed that drives these wealthy elite seems to know no bounds.

One by one, his chosen policy wonks have deserted the White House like those proverbial rats leaving a sinking ship.

First to go was wonder-kid Budget Director Peter Orzag; then, Christina Romer who headed his Council of Economic Advisors; followed by Larry Summers - the chief Economic Advisor and former Harvard President who was forced out of Harvard for remarks hostile to women. Finally, Obama’s Chief of Staff, former Congressman Rahm Emanuel, has also said sayonara to return to Chicago for a mayoral run.

Left in place - but hardly left - is Treasury Secretary Tim Geithner, Obama’s Ambassador to Wall Street and point-man with China. Geithner and his former boss, Ben Bernanke, who heads the Federal Reserve Bank, see themselves as servants of stability wedded to big banks and the strategy of the soon to be departed. They have no progressive pretensions. Little has changed for them.

The only claim this crew could make about achievement is that they averted something worse from happening. They may be correct, but proving a negative is difficult and doesn’t play well from voters who are not well versed in the reasons for the financial crisis. A “jobless recovery” is no recovery at all.

They are right now considering a new bailout being urged by the International Monetary Fund.

To placate his base and the unions, he has appointed another Harvard Professor in Elizabeth Warren. Her role will be to assist in shaping the new Consumer Protection Bureau she herself proposed, the only financial reform that enjoys any popularity.

Warren is outspoken and supported by progressives, yet it is not clear if she will end up with any power to run what she had hoped would be an independent agency. However, it ended up being tucked away as a bureau in the Federal Reserve Bank. As a result, some analysts fear she is being co-opted and politically neutered.

On the left, filmmaker Michael Moore speaks for many disenchanted Obama supporters who feel betrayed by his predictable turn to the safety of the mushy middle. “Sadly, it's a situation the Democrats have brought upon themselves - even though the majority of them didn't create the mess we're in.” he writes.

“But they've had over a year and a half to start getting the job done to fix it. Instead, they've run scared ever since they took power. To many, the shellacking they're about to receive is one they deserve. But if you're of a mindset that believes a return to 2001-2008 would be sheer insanity, then you probably agree we've got no choice but to save the Democrats from themselves.”

His populist progressive proposals include indicting Wall Street criminals - a proposal I put forward in my film Plunder - and imposing a moratorium on home foreclosures, something President Franklin Roosevelt did as a part of The New Deal in the 1930s. (Some big banks have suspended foreclosures when it was revealed they were breaking the law in at least 23 states)

Moore’s views were not even present at a Washington demonstration backed by the Unions in early October. Yet they are a long way from being implemented for at least four reasons.

First, they would represent a U-Turn for an Administration that is nervous about appearing too anti-business and often postures left to move right. Obama’s financial and health care reform - the administrations too big “accomplishments”- reinforced corporate power more than transforming it.

Jailing Wall Street is difficult because years ago big business lobbyists assured that deregulation - and its kissing cousin, decriminalization - would make prosecuting financial crime far more difficult.

And then there’s the Congress under the sway of business interests with so-called “Blue Dog” Democratic conservatives, not to mention the rapidly anti-populist Republicans, able to filibuster and stop the kinds of changes Moore hopes for.

Oddly enough it was the banks that froze foreclosures in 23 States when fraudulent practices were unmasked, As Naked Capitalim noted, “We’ve discussed the fact the fact that banks have become so powerful in Florida that they have managed to get what amount to kangaroo foreclosure courts created. Not surprisingly, the assembly line imitation of justice railroads borrowers, and prevents legitimate grievances from being heard.

It turns out that banks in that state are so confident of their above the law status that they’ve also taken to casually changing the locks on and entering homes they don’t own, meaning haven’t foreclosed upon. This has become sufficiently common that the local press has taken notice.”

Importantly,, the Supreme Court remains under the sway of free market fundamentalists who genuflect to corporate needs in almost every decision.

So a stalemate stays in place with election rhetoric concealing the conventional wisdom and status quo orientation that make deeper reform unlikely. We seem to be in the era of one step forward and two back where the idea of change serves as an election slogan - not a commitment to more fundamental repairs.

The political system is as broken as the economic one, and there is no Superman on the horizon to fly in and fix it.

News Dissector Danny Schechters film and book Disinformation. For more information, Http://www.plunderhecrimeofourtime.com.

    News Dissector Danny Schechter has made a film and written a book on the “Crime Of Our Time.” (News Dissector.com/plunder.) Comments to dissector@mediachannel.org

    © 2010 Copyright Danny Schechter - All Rights Reserved

    Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 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