Jump to content
Objectivism Online Forum

Obama: "we begin the process of regulating Wall Street"

Rate this topic


Old Toad

Recommended Posts

Obama's full remarks today after meeting with new Treasury Secretary Timothy Geithner are below:

I just had a terrific conversation with my Secretary of the Treasury, the Vice President, as well as the rest of our economic team, about the steps that we need to move forward on -- not only on the economic recovery and reinvestment package, but also on making sure that we begin the process of regulating Wall Street so that we can improve the flow of credit, banks start lending again, so that businesses can reopen, and that we can create more jobs -- but also to make sure that we never find ourselves in the kind of crisis that we're in again, that we've seen over the last several months.

And Secretary Geithner is hard at work on this process. We expect that even as the reinvestment and recovery package moves forward -- as I said, that's only one leg of the stool, and that these other legs of the stool will be rolled out systematically in the coming weeks so that the American people will have a clear sense of a comprehensive strategy designed to put people back to work, reopen businesses and credit flowing again.

One point I want to make is that all of us are going to have responsibilities to get this economy moving again. And when I saw an article today indicating that Wall Street bankers had given themselves $20 billion worth of bonuses -- the same amount of bonuses as they gave themselves in 2004 -- at a time when most of these institutions were teetering on collapse and they are asking for taxpayers to help sustain them, and when taxpayers find themselves in the difficult position that if they don't provide help that the entire system could come down on top of our heads -- that is the height of irresponsibility. It is shameful.

And part of what we're going to need is for folks on Wall Street who are asking for help to show some restraint and show some discipline and show some sense of responsibility. The American people understand that we've got a big hole that we've got to dig ourselves out of -- but they don't like the idea that people are digging a bigger hole even as they're being asked to fill it up.

And so we're going to be having conversations as this process moves forward directly with these folks on Wall Street to underscore that they have to start acting in a more responsible fashion if we are to together get this economy rolling again. There will be time for them to make profits, and there will be time for them to get bonuses -- now is not that time. And that's a message that I intend to send directly to them, I expect Secretary Geithner to send to them -- and Secretary Geithner already had to pull back one institution that had gone forward with a multimillion dollar jet plane purchase at the same time as they're receiving TARP money. We shouldn't have to do that because they should know better. And we will continue to send that message loud and clear.

Having said that, I am confident that with the recovery package moving through the House and through the Senate, with the excellent work that's already been done by Secretary Geithner in consultation with Larry Summers and Paul Volcker and other individuals, that we are going to be able to set up a regulatory framework that rights the ship and that gets us moving again. And I know the American people are eager to get moving again -- they want to work. They are serious about their responsibilities; I am, too, in this White House and I hope that the folks on Wall Street are going to be thinking in the same way.

Vice-President Joe Biden agreed, and went further.

“It offends the sensibilities,” Biden said in an interview on CNBC. “I’d like to throw these guys in the brig. I do know what they are thinking, and they are thinking of the same old thing that got us here: Greed. They are thinking: ‘Take care of me.’ ”

Senator Christopher Dodd, chair of the Senate Banking Committee, told reporters:

“I’m going to look at every possible legal means to get that money back...I’m going to be urging -- in fact not urging, demanding -- that the Treasury Department figures out some way to get the money back."

Here comes more government regulation of businesses and the economy. We all know how fiscally responsible the government is, so this "regulation" is surely going to be a big "help."

Edited by Old Toad
Link to comment
Share on other sites

Are those quotes not talking about the comapanies who are asking/receiveing their "stimulus package" funds?

If so, wouldn't the government be able to decide what terms they require to continually supply them with American taxpayer-dollars?

(Not trying to say that anything the American government is doing at the moment is right. However, I think focusing that the government even considering handing out money to whoever asks for it is the problem at hand.)

Obama is a good public speaker. But everything he speaks of is limiting freedom for everyone in America... I don't understand how he became so popular so fast :confused:

Link to comment
Share on other sites

Are those quotes not talking about the comapanies who are asking/receiveing their "stimulus package" funds?

If so, wouldn't the government be able to decide what terms they require to continually supply them with American taxpayer-dollars?

I don't think it is limited to that, but rather based on NY State income tax reports, for example:

"Wall Street Bonuses Plummeted 44 Percent During 2008" Article of this morning on Bloomberg at http://www.bloomberg.com/apps/news?pid=206...&refer=home

[Oops. I edited to delete a part I could not substantiate.]

Edited by Old Toad
Link to comment
Share on other sites

The idea that millions of Americans take Obama's word as scripture saddens me. The solution to our economic woes may end up being a revolution.

Can you point to evidence of people taking Obama's word as scripture?

*** Mod's note: For a follow-up discussion on Obama's status as a God, cult-leader, etc. see this thread. - sN ***

Sheesh.

Anyways, the hang-up on corporate jets always amazes me. When you consider it costs about $100,000 a year to have one of these when the companies that buy them are making billions a year in revenue, it's not even one percent of their revenue. Those are modest estimates too.

Yet, when it comes to drilling companies about their spending the jet purchase always seems to come first.

Edit: I've got a book I need to finish reading on the subject of CEO compensation. Basically it's a report that says, in a nutshell, that these huge bonuses and options offerings actually make the companies a lot better. Instances like Tyco and Enron are the exception, not the rule.

Edited by softwareNerd
Added thread-split note
Link to comment
Share on other sites

...but also on making sure that we begin the process of regulating Wall Street...

BEGIN?!? I've been in the financial services industry for 14 years now and it's been heavily regulated for decades and decades. And they keep coming up with new stupid crap for us to do all the time. (Especially after 9/11.) It really pisses me off that I have to do so much regulatory paperwork, etc., at work every single day and this asshole is up there insinuating to everyone that we're not regulated. :P

Hope and Change = Ropes and Chains!

Link to comment
Share on other sites

The problem isn't really lack of regulations; it's that they weren't enforced. If you don't enforce laws, only the honest men follow them, while the crooks run wild.

Regulations create an unfree 'mixed market' and that is what causes the problems. The government institutes regulations designed to "correct" a specific problem but the market is so complex they can and will never get it right.

It's like taking a guy who's highest level of technological expertise and development is the wedge and telling him to fix the space shuttle.

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...