Obama Caves on Finance Reform

[The Minsky Moment]

There is a near consensus on what ought to be down in terms of regulatory reorganization in light of the financial crisis: consolidate the alphabet soup of banking and securities regulators, and add on a single coordinating sytemic super-regulator to oversee issues like leverage and capital.

Treasury sort of made some half-hearted efforts to do this, but encountered resistance from congressional barons who like the present chaotic system because it maximizes the number of committee subchairman that need to be bribed by industry.  Also I suspect that Geithner who is former Federal Reserve was lukewarm at best at putting in place a super-regulator on top of the Fed.

The likely result is the worst of all possible worlds, where the present system that had failed so badly is kept in place in most material respects, and augmented by a coordinating "council" which is basically a glorified talking shop whose main effect will be to add another layer of bureaucracy (and will probably be subject to capture by the fed).

I don't get it - for some reason, Obama keeps on caving into and compromising with the Congressional democrats on every major domestic issue  - even as he steers a somewhat independent line on security and defense issues.  Last I checked - his popularity was running in the mid-60s and Congress was well below 30.  The Congressional dems need him far more than he needs them.  Either he is overly timid, or he actually agrees with the congressional line, or he just basically doesn't care.  I am not sure which these alternatives is worst but they are all pretty bad.

[The Brain]

Clearly he hates America.

[garbon]

Clearly he hates America.

He is America.

[Neil]

or he just basically doesn't care.

Probably this.  Obama has one mission in life for the next 3 years, and it has nothing to do with the economy.

[Kleves]

As long as the American people continue to give Obama their unthinking adulation, he can do whatever he wants.

[Valmy]

The situation is so grim these days it is best to simply not think about it.

[alfred russel]

I don't get it - for some reason, Obama keeps on caving into and compromising with the Congressional democrats on every major domestic issue  - even as he steers a somewhat independent line on security and defense issues.  Last I checked - his popularity was running in the mid-60s and Congress was well below 30.  The Congressional dems need him far more than he needs them.  Either he is overly timid, or he actually agrees with the congressional line, or he just basically doesn't care.  I am not sure which these alternatives is worst but they are all pretty bad.

I've come to the unfortunate conclusion that because all his previous experience with national issues came as a congressional democrat, his views are probably shaped by his time there and the people he trusts for advice probably come from that body.

[DGuller]

I think the problem is that Obama is conciliatory to a fault.

[DisturbedPervert]

Either he is overly timid, or he actually agrees with the congressional line, or he just basically doesn't care. 

OR secret Muslin trying to destroy America.

[garbon]

OR secret Muslin trying to destroy America.

Can you imagine? He might force hideous drapes on us!

[Hansmeister]

There is a near consensus on what ought to be down in terms of regulatory reorganization in light of the financial crisis: consolidate the alphabet soup of banking and securities regulators, and add on a single coordinating sytemic super-regulator to oversee issues like leverage and capital.

Treasury sort of made some half-hearted efforts to do this, but encountered resistance from congressional barons who like the present chaotic system because it maximizes the number of committee subchairman that need to be bribed by industry.  Also I suspect that Geithner who is former Federal Reserve was lukewarm at best at putting in place a super-regulator on top of the Fed.

The likely result is the worst of all possible worlds, where the present system that had failed so badly is kept in place in most material respects, and augmented by a coordinating "council" which is basically a glorified talking shop whose main effect will be to add another layer of bureaucracy (and will probably be subject to capture by the fed).

I don't get it - for some reason, Obama keeps on caving into and compromising with the Congressional democrats on every major domestic issue  - even as he steers a somewhat independent line on security and defense issues.  Last I checked - his popularity was running in the mid-60s and Congress was well below 30.  The Congressional dems need him far more than he needs them.  Either he is overly timid, or he actually agrees with the congressional line, or he just basically doesn't care.  I am not sure which these alternatives is worst but they are all pretty bad.

That can be attributed to his complete lack of leadership and management skills.  It takes years to develop good executive skills and this is Obama's first such job.

[Berkut]

Well, I couched my support and optimism for Obama on the rather optimistic idea that IFF he managed to pretty much ignore the Dems in Congress, he could probably do a pretty decent job.

To the extent he has done so, I think I was right. Why he is simply bowing to their wishes on economic policy, I am not really sure, but it is not going to end well. The Dems have made it clear that their interest in the crisis is almost completely defined by the opportunity it presents them to re-shape the American economic basis into a much more socialist/liberal disaster. If Obama is going to go along with that, and indications are that he is doing so not just begrudgingly but enthusiastically, this could be pretty bad in the long run.

[Berkut]

I think the problem is that Obama is conciliatory to a fault.

I don't think that is the case - I have seen no indication that he is being dragged kicking and screaming to all these abortions of fiscal policies, quite the opposite.

[alfred russel]

I think the problem is that Obama is conciliatory to a fault.

He is a christlike figure. But then, christ was nailed to a cross and his supporters fed to lions, so that may not work out well for us.

[Valmy]

OR secret Muslin trying to destroy America.

Can you imagine? He might force hideous drapes on us!