Welcome to the New Normal America

obama golden valley

Joseph Palermo: Wall Street banks should be pouring money into Obama’s reelection since he’s been so good to them, and the neocons should be rejoicing in his establishing precedent for more unchecked executive power.

Crying Wolf – The Republican Playbook

republican majority

Peter Dreier: Now that the Republicans control the House of Representatives, expect to hear a lot more complaints from business, corporate-sponsored think thanks, and their political allies in Congress about “job-killing” government regulations.

President John McCain’s First 18 Months in Office

ted vaill

Ted Vaill: President McCain has urged that the United Nations move its headquarters out of the U.S., and he has proposed that the U.S. leave the UN, which he calls “useless and corrupt”. He also has refused to meet with most foreign leaders in the White House, or to travel abroad, except for heavily guarded and secret trips to Iraq and Afghanistan.

Lincoln to the Rescue

Paul Volcker, Blanche Lincoln

Robert Reich: Blanche Lincoln wants to force the banks to put their derivatives into separate entities that aren’t subsidized by you and me. This is just common sense. Her move would also end the big banks’ monopoly over derivatives, thereby reducing their risk to the financial system. It would also cut dramatically into the big banks’ profits.

Break Up the Banks

Stimulus

Robert Reich: As long as the big banks are allowed to remain big, their political leverage over Washington will remain big. And as long as their political leverage remains big, the taxpayer and economic tab for the next mess they create will be big. By all means, give regulators resolution authority and also impose the tightest regulations possible. But Congress and the White House shouldn’t stop there. Limits should be placed on how big big banks can become.

Bail Out Our Schools

No Child Left Behind

Robert Reich: Any day now, the Obama administration will announce $4.35 billion in extra federal funds for under-performing public schools. That’s fine, but relative to the financial squeeze all the nation’s public schools now face it’s a cruel joke.

The GOP’s Free Speech Is Now Free Lies

ronnie

The No and Know Nothing Party, aka the Greedy Obstructionist Prevaricators, started building their latest successful Corporate Ponzi Scheme by using their upside-down pyramid assault (trickle up) on America. Some 30 years ago with the onset of Ronald Reagan, the Conservatives and mega Corporations realized what they offered the people needed to be disguised, since [...]

One Free Market System for Wall Street, Another for Main Street

Upsidedown-mortgages

Robert Reich: Rather than defending the outsized paychecks of Dimon, Blankfein, and the rest of Wall Street as part of the free market system, the President needs to demand that Wall Street help homeowners on Main Street. The Obama White House should have made this a condition of getting the giant bailouts in the first place. The least it can do now is to is to make the free market system work for everyone.

Friday Feedback: Idiot Responds

Fridays the LA Progressive features a comment that was particularly noteworthy. This week we are featuring a comment submitted by Robert Illes responding to comments on his article, Obama, Never Mind FDR, How about JKP?, by Ianam. Here’s Robert’s comment: Idiot responds: The point of the article was that Polk, the only President in history [...]

The Housing Crisis and Wall Street Shame

Housing Crisis

The $75 billion federal program designed to bribe banks to modify mortgages has been a bust. No one knows the exact number of mortgages that have been modified (that will be reported next month) but housing experts I’ve talked with say it’s a tiny fraction of the number of homeowners in trouble. Seems that the big banks can’t be bothered.

A Bottom-Up Bailout Rather Than Trickle-Down

Hank Paulson has just about burned through $300 billion, and it’s not clear what the public has got out of it. Perhaps things would be worse without the bailout but they’re certainly no better. Wall Street banks have not significantly stepped up their loans to small businesses, college students, car buyers, or distressed homeowners. Much [...]

If They’re Too Big To Fail, They’re Too Big Period

by Robert Reich – According to Treasury Secretary Hank Paulson, the biggest Wall Street banks now getting money from the government are just “too big to fail.” Fed Chairman Ben Bernanke uses a different euphemism – he calls them “systemically critical.” The point is that if any of them goes down, it could take the [...]