The real Cassandra speaks!
My big beef is that he didn’t go far enough and is WAAY too forgiving of the motivations and actions of Larry Summers and by extension, Team Obama.
Somebody kidnapped Paul Krugman at that White House dinner, didn't they? Krugman wrote:
Why the change in tone? Administration officials are furious at the way the financial industry, just months after receiving a gigantic taxpayer bailout, is lobbying fiercely against serious reform. But you have to wonder what they expected to happen. They followed a softly, softly policy, providing aid with few strings, back when all of Wall Street was on the ropes; this left them with very little leverage over firms like Goldman that are now, once again, making a lot of money.
Yves again. Dear readers, do you think the Adminstration’s supposed fury is sincere, or merely playing to the crowd? Actions speak louder than words. The Administration, ONLY because the public was rip-snorting mad, announced plans to have tougher reforms in June, with details of various measures coming over July and August. Many have been largely empty (grand promises like clawbacks, with no follow up of any substance, juxtaposed with the spectacle of the poor pay czar Kenneth Feinberg floundering with a hollow mandate). Worse, the supposedly substantive ones have been an utter joke.... [T]he Administration’s proposal [on derivatives] had an industry-favoring loophole you could drive a truck through: only “standardized” contracts would trade on an exchange (or via a clearinghouse). So this reform was mere window dressing.
So why is the Administration so angry? It isn’t that there is no reform. There was never any intent to have real reform. The Administration has been an absolutely shameless backer of the banksters’ interests (and John Dizard remarked that central banks had gone from being vestal virgins to camp followers, so they are now in good company). It is the industry has become such pigs that they are making a joke of even the bogus reform put forward. They are so confident of their mastery of the gameboard that they are refusing even to go along with token concessions necessary to preserve appearances.
To put it more simply: The Executive Branch does not like being revealed as being a puppet of the banking industry. But it made this Faustian bargain, it has no one else to blame.
Nice to see "progressives" all over this, since it would be a real shame to leave this one to right wing populists. Oh, wait...