Friday, April 15th, 2016

President Obama whips Wall street

President Obama whips Wall street

On the very day world’s largest investment bank Goldman Sachs reported stellar earnings, President Obama chose to make an assault on the banking structure. Was the timing a mere coincidence ? Maybe not but it was a clear message to the Wall street we will harness your excesses and the way you do business echoing a populist tone to the nation.

President Obama’s tough new regulations for banks and Wall street surprised many people. In a tough firebrand speech never seen before he laid out harsh realities for Wall street, limiting their size, shrinking high risk trading and other speculative activities. It was the very same activities that lead to national financial collapse in 2008 under Bush administration, and under the very nose of Henry Paul son who was an ex-Goldman Sachs alumni.

It is very clear White-house wants to limit the size of banks and their prop trading activities. One of the main causes of the last year collapse was mortgage backed securities that proved worthless in the wake of real estate downturn running losses into billions of dollars. In the past year recovery of these very securities and thanks to taxpayer bail outs have generated massive profits to these institutions who have shunned any willingness to ease the credit cycle and start lending activities thereby slowing economic recovery.

If that was not enough the very same executives who lead the financial collapse rewarded themselves with huge bonuses in the tune of $145 billion in 2009 up 6% from 2008. Meanwhile the public rolled in double digit unemployment and home foreclosures and a hand to mouth existence.

The seething anger in public has created a minefield for the President. Recent political defeat in Massachusetts which was a democratic stronghold for 50 years is one example how deep this river runs. In addressing public concerns President had to align himself with the populist vote and throw a net over Wall street. By arranging a locked down of sorts, it would was a clever move on the part of Obama administration to do prevent any future meltdowns of our financial system.

What happens next is up for grabs, but one thing is sure Wall Street will never see those days it saw under Bush /Paul son. Meanwhile Obama administration wants to get repaid all the TARP money it lend to the banks from taxpayer pockets and the slogan “ we want our money back”  sounds great with the angry public and right fully so.

What do you think?


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3 Responses to “President Obama whips Wall street”
  1. Earl McHugh says:

    It seems to me that President Obama is an exceedingly ruthless politician who will do anything to enhance and hold on to his power. He was not chastened by his defeat in Mass. ( I say his because he injected his personality into the race and begged for votes for the seedy Democrat he backed. ) I voted for him because the alteternative, McCain, is a not too bright, angry old man who could not be trusted with Presidential power. In any even, look for more blood-curdling, class warfare speeches from this polished version of Mephisto. He has given us ” change ” alright – for t he worse!

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