Democrats, reeling from their stinging Massachusetts’ defeat, have relaunched their populist “Wall Street v. Main Street” rhetoric. Their push for a massive regulatory overhaul poses dangers for the GOP, who should not fall in the trap. Voters are justifiably angry over government bailouts of the banking industry, who played a central role in our economic mess. The GOP should not defend the indefensible, and would do better to channel voter outrage into exposing the Obama administration’s role in banking bailouts, and the fraud that is the Federal Reserve.
The GOP should not defend the indefensible. The banking industry played a central role in our financial mess. This was predictable (and predicted) given the industry’s role in our monetary system, and its accompanying relationship with Washington. Contrary to popular mythology, the Federal Reserve’s primary purpose is not financial stability, but facilitating deficit spending through (inflationary) monetary expansion. It pumps money into the banking system through low interest rates, encouraging financial risk-taking (risk-taking worsened by the FDIC’s insurance of potential losses). The revolving doors between the major banks, the Federal Reserve, and the Treasury ensure that financial regulation is little more than a political smokescreen.
Rather than stand against regulation, the GOP should go on the offensive and demand that Obama and the Democrats do it right this time – look before they leap (“investigate before you regulate”). The Democrat approach (rushing through massive spending bills that no one has read) hurts taxpayers. The GOP should join in the call for financial overhaul, but demand investigations and hearings first – into administration officials’ roles in the bank bailouts (e.g., Treasury Secretary Geithner’s role in the AIG bailout), who was responsible for the auto bailouts (socialization of GM and Chrysler) and identification of an exit strategy, and auditing the Federal Reserve.
The GOP should put the Democrats on defense. Let it be the Democrats who block regulatory overhaul, by stonewalling investigations into our financial system and the bailouts. Our money and banking system is fundamentally unsound, and in need of dramatic overhaul. But, the Obama administration’s proposals are merely political opportunism and window dressing. They are, in fact, an attempt to redirect the wave of voter outrage that is fueling the tea parties. The GOP should neither be the target of that outrage nor allow it to be coopted, but redirect it into getting to the bottom of the bailouts.
The Democrats were not incharge when the meltdown occured.
I seriouly doubt that the Republicans would support an investigation into the causes of this or would support any type of reform. Perhaps thay will prove me worng, but they wil have to turn thier back on the main money support for the party, corperate interests.
You may be correct that that Dems will not do much either since they to get a lot on money form the same donors. The dems do get some money from labor unions so perhaps there is some hope.
The banks and investment banks who are now making record profits because all of their bad assets are held by the US taxpayer, should be required to buy back and retire their bad assets before they can pay huge bonus’s and dividends.
The banks and investment banks who are now making record profits because all of their bad assets are held by the US taxpayer, should be required to buy back and retire their bad assets before they can pay huge bonus’s and dividends.
The huge salaries and bonuses are uncalled for. The reason was the great responsibility of their job. Since none were held accountable for the crash on their watch, they should be required to repay most of their prior salaries.
I like the way France handled this kind of breakdown in its distance past, bring the leaders of government and aristocracy / plutocracy out before the people and off with their heads.