Obama HATES Wall Street
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It is pretty clear from the comments that President Barack Obama has made since he was elected President, that he hates Wall Street and all that it represents. He has set his sights on the once-high flying but now beleaguered sector and the bonus structure that compensates the ivy leaguers that grace its halls.
Here are the striking comments from Obama addressing Wall Street directly since he was elected President:
- Acceptance Speech Nov 5:
"Let us remember that, if this financial crisis taught us anything, it's that we cannot have a thriving Wall Street while Main Street suffers."
- January On ex-Bank of America (NYSE: BAC) John Thain's Elaborate Office Spending:
Recent reports "about companies that have received taxpayer assistance, and then going out and renovating bathrooms, or offices, or other ways not managing those dollars appropriately" show the need for more scrutiny.
Result: Thain said he will pay for the office
- January on Citigroup's (NYSE: C) New $50M Jet:
White House press secretary Robert Gibbs at a press briefing said that President Barack Obama "doesn't believe" using private jets "is the best use of money"-- at least not if that money is from a federally financed bailout package.
Result: Jet cancelled
- January on Wall Street Bonuses:
President Barack Obama called the billions in bonuses paid on Wall Street last year "the height of irresponsibility" and "shameful." Obama intends to send a message to Wall Street that there is a time for profits and bonuses, and "now is not the time."
Wall Streeters at Goldman Sachs (NYSE: GS), Morgan Stanley (NYSE: MS) and the others, are being blamed for the problems we've seen in the credit markets and now the economy. While it is pretty obvious that Wall Street played a key role in the royal screw-up that is called the U.S. financial system, it has also driven the massive growth this country has seen since the 80's. What will an America look like with no growth engine?
The thing I fear most from Obama's attacks on Wall Street is that he is also attacking capitalism. While there is much wrong with Wall Street, capitalism must survive. The bonus structure on Wall Street is ridiculous, and this needs to adjust. But it should be the shareholders of these companies that dictate that - not the government.
Putting collars on bonuses will not fix the economy, it will make it worse. Just like cars need engines to move, Wall Streeters needs money, and lots of it, to get the gears of the economy moving again.
Obama needs to focus less on restraining Wall Street, and more on stimulating Main Street.
With all due respect Mr. Obama, a thriving Wall Street is the sign of a growing Main Street.
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What is particularly galling is...
There is explosive rage in this country. Obama has to tread lightly not to inflame it, as its manifestations are probably counterproductive to the challenges we faced. I can guarantee you you are right, he is very angry. He hides it well: his brand is coolness under pressure. So what is particularly galling is that we can see that corporate governance and fiducial responsibilty is an utter sham in American capitalism. The board and the office of the CEO have a direct parallel in politics: a military dictatorship. Can you imagine doing your job like the bankers have done, and holding on to it with bonus? Can you imagine what would happen at Boeing if 787s had design flaws or started to crack? At Microsoft if Windows 7 were worse than Vista? At Intel, if the final tapeout of a new processor was loaded with hardware flaws? Industrial companies are ruthless compared to Wall Street. Yet for the most part, the bankers maintain their entitlements to our funds, often, paying capital gains taxes while investing other peoples funds, rather than income taxes. What we have witnessed, beginning with Reagan, was a slow-motion, boil the frog coup d'etat, in which, with little regulation, senior executives and boards took control of most of the free cash flow of conpanies, paying themselves whatever they could get away with, locking in such large wealth that they were immune from fear of job loss and reputation, and operating companies for their own remuneration. An RNC / FOX News propaganda machine was sufficient to intimidate everyone, and while 401Ks (a bad idea... illiquid funds guaranteed to be in Wall Street accounts) were doing "well", the public was content to watch TV and parody the excessive lifestyles of the rich. OK people, what do we do now?
Obama hates Wall Street
"While it is pretty obvious that Wall Street played a key role in the royal screw-up that is called the U.S. financial system, it has also driven the massive growth this country has seen since the 80's" This is not pretty obvious. This is nonsense. Technological advances, mainly the work of relatively poorly paid engineers caused much of the growth, creating demand for new products. Capital equipment, construction, transportation, and military, also grew well. Wall Street was basically a parasite to this process. While one could correctly argue that providing a market to monetarize these companies is an important function, Wall Street is today organized to make money in relatively risk-free ways, ca. fees and usurious interest rates. Risk free to them. When they do risk, we take the risk.
Wall Streeters
No, Obama does not hate Wall Streeters. But like me, he hates those on Wall Street that have a sense of entitlement to collect multi-million dollar bonses when their company is tanking. Some of these corporations have given out bonses equal to what they have taken in through bail-out monies. Doesn't John Thain's office redo to the tune of 1.2 million get under your skin. Does mine since the taxpayers paid for it.
What? Presidnet Barry is a Socialist?
DUH! Barry Soeturo is a Socialist with Marxist tendencies. What's the big surprise here?
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Well put, aj!
Jan on Feb 3, 2009 03:18 PMYes, yes, yes! I would have no qualms accepting the vast incomes that the Wall Streeters earn, if they were less like leeches and they lose when their products and companies lose. They have evolved into simple money manipulators, simply skimming (or should I say shoveling or scamming) off of real goods and services. As far as jen feels, get a life; try to do a little research beyond the hateful twisted rhetoric of Rush Limbaughand his ilk.