This Congress is killing the middle class.
…Whitney also said financial regulation reform and policy-making that is not friendly to the middle class will hurt growth.
“The populist incumbents argue that we’ve got to get money to redistribute wealth,” she said. “This squeezes the middle class further down the food chain. The unintended consequences of this are maddening.”..
Meanwhile back in DC our HUD secretary is either deluded or spinning like a top:
…”There is no question that today’s housing market is in significantly better shape than anyone predicted 18 months ago,” he told reporters, adding, “Seventeen months after President Obama took office our housing market is stabilizing.”
To support the claim, the HUD chief released a scorecard on the housing market that showed after 30 straight months of decline, home prices have leveled off and are expected to begin adjusting upward.
It also showed that since April 2009, 2.8 million homeowners have received restructured mortgages through Obama’s loan modification programs, and more than 2.5 million families used the First-Time Homebuyer Tax Credit to purchase a home. The credit was a part of the first stimulus bill Obama signed into law shortly after taking office….
BWAAAAHAA!!! ROTFLMAO!!!!! HAMP and the Tax Credit worked he says!! BWAAAAHAAFRAKKINHAAAA!~!!! ZOMG! Ahh man they really slay me.
Money quote- “Politicians have proven far worse than our worst expectations,”
Investors should “avoid financials at all costs, particularly in the banking sector” because the Senate’s financial reform bill will end up restricting credit and hurt bank earnings, well-known banking analyst Meredith Whitney told CNBC.
…Whitney cited two new credit card rules in the Senate bill as particularly onerous. One would force banks to comply with individual state caps on credit card interest rates. The other would regulate how much credit card issuers could charge merchants for using their cards.The state caps on interest rates, she said, could make rates in one state lower than in another, causing banks not to lend in certain states.
“It’s going to make accessing capital so difficult for pockets of the country,” she said, particularly for small businesses that often depend on credit cards for funding….
love the Rickster!
Our many posts on FAN and FRED here
Corker sounded very sad that Dodd (D-CT-Friend of Tangelo) let him know yesterday that they will not be proceeding with the bipartisan talks on the Regulatory Reform Bill. Compare this announcement with the optimistic tone Warner (D-VA and Warner is also IMO the DNC choice to run against Hillary in ’16 no doubt) and Corker had just 2 weeks ago, remember ALL must bow before the almighty health care reform, even this, the most important thing they can do for the economy…
Recall this is the second time the Dems have screwed Corker after he put it all on the line for them, the same thing happened when he was trying to help in the GM bailout talks…fool me three times??
Corker has been taking serious heat for working with Dodd and the Dems and here is his reward, he is dumped to the curb…let it be a lesson to others, these Congressional Democrats are NOT your Daddy’s Dems, they are ideologues and even those who WANT to work together (Corker kept going on and on about how wonderful Dodd and Warner D-VA were), the WH will put the kibosh on it….
So are they going to ram ahead on a partisan Financial Regulatory bill using reconciliation too?
A bipartisan effort to craft a financial reform bill fell apart in the Senate, with Senate Banking Committee Chairman Chris Dodd (D-Conn.) saying he would move ahead on a revised package without Republican support. At a news conference after Dodd’s announcement, GOP committee member Bob Corker said the “decision was very disappointing” but added he understood “the pressure he [Dodd] was under.”
“There’s no question the White House, politics and health care have kept us from getting to the goal line,” he added….
…”Dodd is going for broke, hoping that somehow he can push a bill out of committee even though he has not been able to work out crucial deals behind closed doors,” said banking analyst Bert Ely. “I have been highly skeptical for months about the prospects of major financial regulation legislation this year. I now am more skeptical than ever “…
Another key legislative issue biting the dust because Obama and Pelosi are OBSESSED with healthcare. Nice way to govern..NOT.
This is a great time to post NakedCapitalism’s EXCELLENT (should win Pulitzer for Truth in a world of propaganda hacks) Blog post on how Obama has TANKED meaningful financial regulatory reform already:
I’ve seldom seen so much rubbish written by people who ought to know better in a single day. Many able people have heaped the scorn and incredulity on three articles, one a piece on Rahm Emanuel slotted to run in the Sunday New York Times Magazine, another an artfully packed laudatory piece on Timothy Geithner by John Cassidy in the New Yorker and a more even handed looking one (I stress “looking”) in the Atlantic.
Continues after the break:
Rep. Paul starts great and then begins talking about ending currency regulation and letting people coin their own money too. NOT a good idea!! Imagine! sigh. and CNBC: Keeping the Federal Reserve accountable, with Rep. Ron Paul, R-Texas and Frederic Mishkin, Columbia University professor.
Update: Oh this is rich, Andy Stern and SEIU are having an ‘end too big to fail’ rally outside Golden Slacks, it sounds like they are actually supporting the Dodd position which the WH is NOT supporting but we know Andy Stern is there (WH) more than anyone else…so are they ‘accidentally’ using the same words as Jamie? Are they helping to keep Golden Slacks’ negative profile so high they don’t bid on taking any of the assets in the FDIC bank seizure sales? (Jamie is against the Dodd too big to fail legislation because he reportedly wants to buy some of those assets and Golden is a competitor…is the WH not really against the Dodd legislation and lying to Jamie? Is Stern just greedy or is this planned? man oh man…)
…a couple hundred of them — led by Service Unions International Union president Andy Stern — plan to gather outside of Goldman Sachs’ Washington offices Monday morning to protest the firm’s mega-bonuses, and demand the end of the “too big to fail” doctrine, according to a press release.
The event will be held outside 101 Constitution Ave. N.W., an office building that’s home to many of the most powerful lobbyists and corporations in town, including Goldman. It’s also where you can find POLITICO’s Capitol Hill bureau (in the basement).
Among their demands, the protesters will say that Goldman bankers should donate their reported $23 billion in bonuses to foreclosure prevention programs….
wow. We supported Jamie Dimon for Treasury Secretary. Face it Geithner already gave billions to the banks via AIG and CITI, may as well have a TOUGH fox guarding the hen house, and Jamie is the toughest. Paul Volcker who gets wheeled out for the occasional photo-op is clearly being ignored, treated like the ‘crazy Uncle’, as Charlie Gasparino puts it. Obama is listening to only one banker it seems, Jamie who has vested interests in keeping things as they are.
Airtime-Fri. Nov. 13 2009 – 12:50 PM ET – CNBC’s Charlie Gasparino has the details on whether Jamie Dimon is too powerful.
Jamie Dimon- ‘No Bank Should be Considered Too Big to Fail’
…Dimon, in a Washington Post opinion piece, said the government shouldn’t provide artificial life support to banks that don’t perform. “The term ‘too big to fail’ must be excised from our vocabulary,'” Dimon wrote in Friday’s Post.Yet he said it shouldn’t be the size of the institution that drives the new regulatory policies being considered in Congress but rather their ability to manage risk and provide the best services for customers.
Interview and discussion with Paul Miller of the F.B.R. Capital Markets. He gives his thoughts on the Obama’s financial regulation reform in banks. (Bloomberg News)
Really interesting, Miller notes the states will now be able to enforce their own regulatory reforms on the banks at the state level, something heretofore undone…..