Obama, GOP wrangle over Wall Street regulations

Source: Associated Press

"My patience is running out, my patience is running out," he said from the Senate floor. "I'm not going to continue doing this if all I'm getting from the other side is the suggestions somehow that this is a partisan effort."

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White House economist Austan Goolsbee dismissed the GOP objections as "totally disingenuous."

"Bailouts are forbidden," he said in an interview. "There will only be wipeouts. They (the banks) will clean up the messes. If somebody fails, they're done -- they're toast. The management is fired. They're broken up or sold off or liquidated."

Goolsbee added the GOP broadside was "pretty cheeky of the Republican leadership," and an effort to divert attention from its efforts to stop regulation of the derivatives market. "They're trying to dramatically weaken and put loopholes into that derivatives regulation," he said.


Read more: http://finance.yahoo.com/news/Obama-GOP-wrangle-over-Wall-apf-1643251072.html?x=0

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The big question is the degree to which the corporate media continues to play Republican talking points that the stronger regulation constitutes and implicit guarantee of a bailout while Republicans also work hard to weaken financial regulations. Even worse, to what degree do liberals begin to buy into these Frank Lutz lies.

Congress and the public that "we got it, we don't need regulation anymore". A relatively short time after that, regulations are relaxed and the financial aspect goes into severe "Screw Up" mode. It is predictable as the sunrise/sunset.

The people who "control" the markets go into Groupthink, spurred on by seeing profits grow in leaps and bounds for some, so they figure they better hop on the Gravy Train before it loses steam. Eventually, the economy goes into a tailspin as the Robber Barons make off with their booty. Then, to make matters remarkably worse, they horde what they have taken and put the hammer to the economic anvil.

Republicans believe that greed and avarice can be self-moderated, but inevitably, one the train gets rolling, it goes out of control until the system is hopping off the tracks. They just are not capable of seeing the cycles they set up and then watch as the system falls apart by their own doing.

There is an aspect to this that I find particualrly disturbing, and it is not only the R's that fall into this, it is remarkable that these congresscritters sell the nation off so cheaply. For $10,00/$20,000 in "contributions", they set up the economy to fail as hundreds of billions are siphoned off by those that do little more than play markets and speculate with other peoples money.

Re-regulation is mandatory, several recent laws need to be rescinded, such as that bag of crap that allows corporations to loot pension funds for speculation. As long as some are allowed to gamble with other peoples money, there will be disaster breaking though the door.