JAN 09: What Should Obama Have Done With Wall Street Banks?

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I can understand Wall Street's purpose if it's a mechanism to supply capital to new and existing companies. With its vast funds it can lubricate the gears of the national economic machine. But Wall Street can also be a parasite on the economy.. sucking out its lifeblood when it gets control of commodity markets like food, oil and gasoline.

My question is what should Obama have done back in January 09? Should he have then broken the political power of these banks? Was it too late to nationalize them and break them up because TARP was passed 4 months before?

I just see this as such a lost opportunity to put these banks back in the cage to where Wall Street became just a boring money utility instead of an economic parasite that can bring the economy down.

Pierpont's picture
Pierpont
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Feb. 29, 2012 1:19 pm

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He could do now what he could have done then (it's an even bigger problem today): Institute a 10-year income tax holiday for banking profits.

chilidog
Joined:
Jul. 31, 2007 3:01 pm
Quote chilidog:He could do now what he could have done then (it's an even bigger problem today): Institute a 10-year income tax holiday for banking profits.
You lost me on that one. Please explain. I can see not paying taxes on bank interest that is below the rate of inflation... but that would end whenever the Fed raised interest rates to above inflation.

Pierpont's picture
Pierpont
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Feb. 29, 2012 1:19 pm

The big banks do not have any profits, so they would not benefit. New banks would be created to provide banking services the economy needs.

chilidog
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Jul. 31, 2007 3:01 pm

The President do anything? I'll paw through my vest-pocket US Constitution later, but for now, I don't think the executive branch has that power. Only to get up on the bully stump, FDR stile.
That is why we all need to get out for the big vote, & vote big for the most progressive, furthest lefty candidates that we can send to congress.
Then, We The People can howl out our desire for major reform; A New, new deal, that would include banking reform. Nationalize the "too big to fail".
Put the Federal Reserve inside the Dept. of The Treasury.
What of the power of the executive in time of war? What of all these office holders, and their oath to defend The Constitution against all enemy's, foreign, And Domestic?
Are the big banks, & other financial institutions, serving multinational interests, a clear & present danger? Have they, and are they conducting their business with care for the well being of our nation, and its people? May it be that the multinational financial cabal should be called out for what it is & dealt with as deadly assault is to be addressed? Who doubts that legions have gone early to their graves, and families wrecked, at the end of the big banks conduct?

Yammerman
Joined:
Jul. 31, 2007 3:01 pm

Quote Yammerman:The President do anything? I'll paw through my vest-pocket US Constitution later, but for now, I don't think the executive branch has that power.
The government... and this includes Congress not just the president, certainly had more power over those Wall Street banks when TARP was bailing them out. It's unfortunate that happened during Bush's last few months and Bush gave them a get out of jail free card to bail them out from their own mistakes. Yet I'm not sure if Wall Street collapsed in Jan 09, Obama would have done much different than Bush. I would have preferred the backs of these banks was broken, and they were put back in their cages. If as a condition of an Obama TARP these banks were nationalized, new people could have put in control. Maybe the banks could have been broken up. Now we have Way Too Big To Fail banks, no one goes to jail, and a weak Dodd Frank which falls short from undoing the deregulation damage done by Clinton and Bush2. These banking parasites still have the power to strangle the economy... and it's us little guys who are paying monetary Tribute to these banks each time we fill our tanks. At times like this I just want to give Washington… Dems and GOPers, the finger. Thanks for nothing a**holes.

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Pierpont
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Feb. 29, 2012 1:19 pm

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The other way we're subsidizing Walmart...

Most of us know how taxpayers subsidize Walmart's low wages with billions of dollars in Medicaid, food stamps, and other financial assistance for workers. But, did you know that we're also subsidizing the retail giant by paying the cost of their environmental destruction.

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