For the bankers the main issue is who will keep the current implied bailout regime in place? Who will let the Federal Reserve do what it does without criticism? Who will keep the light from shining on them? Who won’t question the current system of debt piled on debt piled on debt. Who will happily do The Street’s bidding?
Hey Hillary, you’re “pragmatic.” You look pretty good. Here’s $100 million. Now go knock em’ dead.
At the top of the list is building trust with the American people. OK, that is key.
Just below building trust with the citizenry? Fighting crony capitalism. No joke. Lee sees it (rightly) as perhaps the issue which will define the success of this Congress and the GOP going forward. If the GOP actually works to reduce crony capitalism, to free up the economy, to reduce the special deals for big business and other large interests, the party will be rewarded. If however the Republicans lapse back into favor pedaling voters will punish the party.
Scalise discusses a number of things in the attached interview, including the Keystone Pipeline, the minimum wage, and “bipartisanship” (fear bipartisanship). But the most important nugget is that it looks like Congress will force a Fed audit onto Obama’s desk and he will have to sign it or veto it.*
As a young broker an older quite successful broker told me the same thing. He also said that there was no reason to watch CNBC after 9:30 (the opening market bell) because anything of value for the day which actually found its way onto TV happened before the markets got rolling.
I have found both bits of advice to be right.
Ms. Warren is the darling of many who think that if there was just more government activism all the world could be set right. That if just more people like the doe eyed wonder from Harvard were to get into Congress, and imagine, the presidency, we could finally settle some scores with Wall Street.*
Don’t count on it folks.
I was recently talking with senior wonk in Washington DC about this very issue. Why was it for all the think tanks, all the white papers, all the fits and crying in the media about this issue and that, that policy on the big issues hardly ever changes to reflect the will of the American people?
My friend thought basically the same as the author interviewed in the attached article. There is a surface level government and then there is the “deep state,” a place where massive power is housed, and wielded by largely faceless and mostly unaccountable managers who have agendas which are often very different from what you and I might want.
Given that she supported renewing the Export-Import Bank of the United States, Boeing’s bank, one of the most egregious examples of crony capitalism there is, Ms. Warren also chose to support Wall Street. Additionally, her baby the Consumer Financial Financial Board is (illegally?) housed within the Federal Reserve (not subject to Congressional funding oversight) and has become a lobbyist mill already.
One of the problems with the attached article is that it implies that the reason Goldman pulled the things it did and does is because the Federal Reserve, the regulator, wasn’t and isn’t strong enough to curtail Goldman’s power.
The Fed is plenty strong. Far too strong in fact. What the author doesn’t appear to get is that in this instance we don’t have a case of “regulatory capture” per se. The Fed doesn’t kowtow to Goldman Sachs. The Fed and Goldman, and JP Morgan etc., are partners and always have been.
People are starting to get sketched out on Wall Street. The market is wobbly this morning. The Alibaba IPO (which did well) has people looking around wondering what’s next. Europe slowed last month. China continues to slow. India’s SENSEX was down almost 2% today. The Ebola “worst case scenario” just jumped from 500,000 to 1,000,000. And we just started bombing Iraq and Syria.