Wednesday, November 3, 2010

The New Normal - Part VI: House = Republicans, Senate = Democrats. But So What? People v. Corporations is the New Paradigm

The Big Picture's Barry Ritholtz explains it.  He also articulates the lost opportunity to effectively rescue the economy and regulate big banks in "The Tragedy of the Obama Administration." 

Related:
The New Normal - A Multi-Part Series

9 comments:

AliG said...

If anyone has any doubt that the left is at least as complicit as the right in the destruction of the middle class and the ongoing transfer of wealth to the already wealthiest, please read
http://www.rollingstone.com/politics/news/17390/188551

If you consider yourself a liberal elitist, read it twice.

C'ville Bubble Blog said...

Just for clarity: the bloggers agree with this point--BOTH PARTIES (have folks who) are complicit and, in cases, corrupt. Which is why the situation is so dire. It's not party-specific.

Humpty said...

The entire political system in this country is corrupt and broken. Up until 2008 there was no choice. Both parties were basically the same. The Obama era changed that quite dramitically. Between him, Harry Reid and Nancy Pelosi we saw the left do a coup d'etat and hijack the Democrat Party. This too was not the change Obama promised the middle class. He used Chicago style politics, the most corrupt of all, to get his changes done and the election results last Tuesday was a clear message that the American people will not tolerate him, his methods and his policies.

What we need is "fiscal responsibility". We need a balanced budget amendment. If this means slashing government spending and hiking taxes, so be it. Once we have a sound fiscal policy most of our problems will be resolved. Unions cannot have the power they currently wield, litigation awards have to be curbed, government and insurance fraud must be checked and violators severely punished. Small business manufacturing must be encouraged in every way possible through labor laws, taxes and anti trust. We need to create jobs through small sound businesses. We need to become a productive society again.

Basically we must revert back to what made this country great. Unfortunately, our politicians are corrupt and there is everything but common sense used in decision making.

So it's going to be more of the same until we completely run aground. Only when we face the abyss will things change. We're close but not there yet!

craigger said...

If it makes you feel any better. Ron Paul will be chairing the subcommittee overseeing the Fed. Tight money is not the friend of any corporation, but it does allow prudent citizens to maintain their purchasing power and reward saving.

http://en.wikipedia.org/wiki/United_States_House_Financial_Services_Subcommittee_on_Domestic_Monetary_Policy_and_Technology

Anonymous said...

"Reward saving"? Come on. Are interest payments about to go up? I make 1.3% on my considerable savings. Sure, maybe I'd have recently made more in the stock market. But since I no longer trust Wall Street nor big banks, I'm not going that route. And since I have been waiting out this idiotic housing market, I keep telling myself I need the cash on hand when the house I want comes along.


None of this is the "American Dream."

Montpellier said...

Whew...so many talking points, all at once.

For starters - Barry Ritholtz gets it exactly right - it's Corporate (FIRE) America vs. the rest of us.

WRT the Partisan nature of all this. It is most certainly true that both parties are badly corrupted - but that does make them equal. Nor does it make their rhetorical preferences equal.

It certainly does not mean that somehow because Democrats preach one thing and yet do another (Geithner, Dodd) that we might as well just throw up our hands and adopt the GOP's nakedly honest agenda - just because it's nakedly honest.

Please note that the tortured history of the Volcker rule makes clear that some Democrats actually tried to get the thing enacted; the GOP announced within 24 hours of being elected that they'd seek to gut it. That's not the same, and it's tiresome to listen to the constant objection that a half-measure is compromised and therefore we should do nothing at all - it makes the perfect the enemy of the good.

Though certainly we'll find out now where that kind of vote leads. Anyone who thinks the GOP will somehow return 'personal responsibility' to DC (noting they believe Corporations are persons) and allow Corporations to fail is an idiot.

The GOP toyed with that idea - and we got Lehman - they certainly had no stomach for a second attempt, and though convenient amnesia has prevented folks from remembering it, the TARP, TALF and bailouts were initiated by the GOP Treasury Secretary and the Bush Administration. The "spending" won't change one iota, nor will it be any less corrupt, and crazy Dr. Paul won't be doing squat to stop the Fed.

People toss out folks like Perriello in favor of complete corporate whores like Hurt...well, you're just kidding yourself that somehow things will be different. Sure, it'll be a different dish of rhetoric but substantive policy will be the same (just as "socialist") without even lip-service attempts at change.

Montpellier said...

Oh,oof, serious typo:

It is most certainly true that both parties are badly corrupted - but that does NOT make them equal.

Humpty said...

Montpellier, you're just another political hack. It's exactly this mindset that is the problem. We've had decades of lies from Democrats and Republicans. Time for Americans to take over. If this new Congress goes back to their old ways we will see another turnover. Eventually you and your ilk will get the message. If Hurt is like Perriello we'll throw him out too.

Wake up America, the clock is ticking and time is not on our side.

Montpellier said...

@Humpty - oh, what, and you're not with talk about a "coup d'etat by the left" - puhleez, spare me.

Pelosi, Reid, Rahm & Obama are at most a slight shift to the center - and only marginally less corporate whores than the GOP.

The giant healthcare reform bill is a grab bag of corporate giveaways (just exactly like the GOP passed Medicare Part-D) that guarantee a flood of consumer dollars into an inefficient sector that was about to blow up under a "free market".

I do hope they repeal it - and introduce Medicare austerity measures - to hell with the doctors who are used to steady boat payments, courtesy of the US Taxpayer - and all the idiots who are demanding they "take back" their government can make do with less transfer payments too. Of course, the ones that don't croak will probably have a change of heart and vote out the Tea Party.

Whatever man, you righties talk a BIG GAME and bloviate a lot - let's see you put your money where your mouth is...starting with Medicare and SSI, the top two Federal Budget items. You guys have control of the house (where spending bills come from) - let's see you make good. Ditto beating back QE-II (monetization)...c'mon, bring it on...you've promised, we're watching. Snip, snip.