Posts Tagged ‘Financial Reform bill’

There are some points worth mentioning in this speech Obama made after the pass of financial reform bill.

1. Almost all Republicans voted against!! Are all those people religious crack heads, rednecks and sell outs  to big corporations in order to deny even some minor and mostly insignificant  changes? I really would like to meet them and see wtf they are.

2. Of course Obama and Democrats are not the heroes of the working Americans. The bill is a work agreed by the financial banking elite that do understand that their excessive and chaotic power  is  a danger even for themselves and  it can bring  the whole system down  something that will finally destroy  also them. Further the  law is heavily amended and adjusted and away from its initial conception and intention to try to really control the banking industry even partially. The bill is a massive document of 2,300 pages and has many loopholes. No real separation of banking and investing activities (like it was happened in the Glass-Steagall Act).  People can check this legislation that passed during 30’s after the huge financial crisis that triggered a long depression in US and was gradually abolished completely during 90’s, as a power conflict among government and banking industry with the final winner the banks.  The bill  just limits some activities in derivatives not abolish them at all (they even give to banks 7 years!! to adjust in these few limitations), it demands from bankls to increase slightly their safety capital requirements but give them  again 5 years!! to adjust to this change.  It does not link the pay of their traders and top executives to long-term performance that every one shouted about. I think bankers themselves would be stricter to their own kind. The articles that discuss critically the reform bill are plently  in the internet and reveal the real nature of this reform bill.

3. There will be regulators that would oversee the big banks but regulators are just people that can be bought out, intimidated or being unable to do their job. If someone could check the corporate law of US I think it accounts for thousands of thick volumes. There are armies of well paid lawyers by Wall Street that would exploit any loophole or legislative window. And I believe all legislations are written to have loopholes and maybe the loopholes are more important and lucrative than the laws themselves. Maybe many times a law is written to create a loophole and not the other way around, who knows. I wonder if  anyone have thought about that and it sounds funny now I think of it  but maybe it is a bitter truth of modern life. Overall the real political and institutional power of big banks left intact so nothing really change in essence in the overall structure  of US economy. Big banks will still be too big to fail and to powerful to be under any real control.

4. Obama is just a great orator. He is not a savior or a protector of people, he couldn’t be even if he wanted. No one can really protect the people except themselves through their activities and free thinking. Still Obama is not just a puppet and a staged actor of the powerful at least this is what I would like to believe. I sense that this guy has some genuine concern for the average person and this is just my instinct or maybe my wishful thinking.  But  the point is that he don’t have the real institutional power to overcome the real political power of the money elites.  He is someone that is chosen to be the public image of massive power centers that operate and sometimes collide behind the scenes. He and his speeches are just a symbolic representation of this real power struggles and processes that are taking place in Wall Street and corporate top executives’ offices and top public officers’ bureaus. So the amount of comprises he has to take is really enormous leaving no space for any real radical changes and probably he knew that from the beginning. So he is not the great agent of real change and neither a hypocritical puppet, he is mainly an actor, an agent that plays the compromising role of the pubic image and communicator to the general population of  those colossal power structures that decide about and shape the American  life and policies. But overall I believe he  is really a good guy and not just someone playing a role, at least after judging by his past before presidency.  He also probably has  enough genuine compassion for the average person considering the fact that he was, before becoming the president,  an educated middle class American and not a member of the enormously wealthy elite like Bush.  He is a good guy although he can not really deliver any real radical change (and of course he knows that). Maybe I am a little romantic here or naive but it feels good to think that there are some good guys left especially in the top stratums of the society.

This article below is also a very interesting and realistic critique of the US financial reform bill


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