Tag Archives: Wall Street

13 Reasons To Be Glad Bush Is No Longer President

No matter how they try to white wash the George W. Bush years in the White House, there will always be a stench.

Starting from day one when the United States Supreme Court made an unprecedented decision to declare Bush the winner in Bush v. Gore to Dick Cheney’s Energy Task Force which benefited Big Oil.  George Bush and Dick Cheney will be remembered as oligarchs who committed crimes against the American people and humanity, throughout their eight year-long reign of terror.

Think Progress

The five living presidents met in Texas on Thursday to dedicate the George W. Bush Presidential Library and Museum at Southern Methodist University in Dallas. And while Bush and his aides were using the occasion to soften the 43 president’s image and solidify his legacy, a recounting of Bush-era policies — from his deregulation of Wall Street to the invasion of Iraq — greatly undermine the new rosy narrative of the Bush years:

Authorized the use of torture


Though the US Code bans torture, Bush personally issued a memorandum six days after the September 11th attacks instructing the CIA that it could use “enhanced interrogation techniques” against suspected terrorists. The methods included waterboarding, sleep deprivation, and “stress positions.” A recently-released bipartisan committee concluded it was “indisputable” that these techniques constituted torture, and that the highest authorities in the country bore responsibility for the creation of a torture programs at Guantanamo Bay and CIA “black sites” around the world.

Politicized climate science

Bush’s “do-nothing” approach to climate change prevented the U.S. from pursuing meaningful action. Though he claimed that global warming was a serious problem that was either a natural phenomenon or caused by humans, the administration routinely edited scientific reports to downplay the threat of climate change, censored CDC testimony that climate change was a public health threat, and promoted climate denying studies financed by ExxonMobil. At the end of the Bush presidency, a top intelligence adviser warned the incoming president that climate change was a massive destabilizing national security threat that would lead to “Dust Bowl” conditions in the Southwest.

Ignored Afghanistan to launch a war in Iraq

Rather than consolidating gains after the overthrow of the Taliban in Afghanistan, Bush and his neoconservative allies pushed for removing Saddam Hussein from power, kicking off a war that led to one mistake after another. Ten years later, the war is estimated to have cost cost up to $6 trillion and resulted in the death of more than 100,000 Iraqis, 4,000 Americans and another 31,000 wounded. Meanwhile, Afghanistan saw a resurgence of the Taliban after Bush shifted resources to Iraq.

Botched the response to Hurricane Katrina

Bush appointed Michael Brown — a man whose only real qualifications were political connections and a sting at the International Arabian Horse Association — to head the Federal Emergency Management Agency (FEMA) in 2003 and he proceeded to undo everything the Clinton Administration had done to make FEMA functional, botching the response to 2004′s Hurricane Frances so badly as to prompt calls for his firing. But Bush kept Brown on board and, as a detailed timeline of the response to Hurricane Katrina demonstrates, neither man took the storm seriously until it was too late. Bush, who famously said “Brownie, you’re doing a heck of a job” midway through the crisis, thus presided over the most deaths due to a single natural disaster in the United States since 1900.

Defunded stem cell research

At the turn of the century there was perhaps no greater hope for finding cures to illnesses ranging from Alzheimer’s to diabetes than ongoing stem cell research. But months after taking office, Bush eliminated all federal funding for any new research involving stem cells, citing a religious objection to the use of embryos — even though the embryos in question were byproducts from couples undergoing in vitro fertilization and would have been destroyed by IVF clinics regardless. Twice more during his presidency, Bush vetoed legislation that would have restored funding.

Required Muslim men to register with the government

Following the terrorist attacks of September 11, 2001, Bush’s Attorney General, John Ashcroft, instituted an anti-terrorism program to register all male immigrants between 18 and 40 years old from 20 Arab and South Asian countries. Thousands of innocent men came forward to register, only to be rounded up for minor visa violations. Roughly 1,000 men and boys in the process of applying for permanent residence were arrested and confined in standing-room-only centers, enduring invasive strip searches and beatings by guards. Many were deported, while others were held for months after their immigration cases were resolved, without a shred of evidence they had any links to terrorism.

Reinstated the global gag rule

On Bush’s first day in office he reinstated a rule that prevented any non-profit doing work overseas from using any of their own, private money to fund family planning services. This so-called “Global Gag Rule” posed a serious threat to international maternal health, but it also cut off funding for HIV/AIDS initiatives, child health programs, and water and sanitation efforts.

Supported anti-gay discrimination

In 2004, President Bush endorsed the Federal Marriage Amendment (FMA), which would have banned same-sex couples from marrying in the U.S. Constitution. The Massachusetts Supreme Court had just ruled in favor of marriage equality, and Bush hoped to block the ruling from taking effect because “a few judges and local authorities are presuming to change the most fundamental institution of civilization.” Though the FMA failed numerous times in Congress during Bush’s tenure, he exploited the issue of same-sex marriage to turn out conservative voters for the 2004 election. That year, 11 states added constitutional amendments outlawing same-sex marriage.

Further deregulated Wall Street

Under Bush, federal agencies eliminated regulations on predatory lending, capital requirements, and other Wall Street practices, allowing banks to engage in riskier and more destructive practices that contributed to the financial crisis that started on his watch. Bush’s Treasury Department also pushed for even further deregulation that would have given Wall Street more oversight over its own practices even after the housing collapse had begun.

Widened income inequality

The per-person benefits of Bush’s tax cuts accrued to the top one percent of Americans, as therate for capital gains dropped to 15 percent. The CBO found that federal income taxes dropped far more as a percentage of the one percent’s income than for any other group after 2000.

Undermined worker protections

Under Bush, the Occupational Safety and Health Administration, whose mission is to protect safe working conditions, issued 86 percent fewer rules or regulations and pulled 22 items from its agenda of proposed safety and health rules. The office’s funding and staff were also consistently reduced. Meanwhile, funding for the Equal Employment Opportunity Commission, the agency charged with helping workers who claim discrimination against their employers, was similarly low and staffing fell even as the number of complaints increased, leading to a rising backlog of cases.

Ideological court appointments

Bush filled the federal bench with ideologues, including two lifetime appointments to the Supreme Court. These conservatives believe that corporations should be able to buy and sell electionsruled against equal pay for equal work, and have sought to undermine a woman’s right to choose.

Presided over a dysfunctional executive branch

A 2008 analysis by the Center for Public Integrity documented more than 125 executive branch failures over Bush’s two terms. These included government breakdowns on “education, energy, the environment, justice and security, the military and veterans affairs, health care, transportation, financial management, consumer and worker safety,” and others. “I think we’ll look back on this period as one of the most destructive periods in American public life . . . both in terms of policy and process,” Thomas E. Mann, senior fellow at the nonpartisan Brookings Institution observed, noting “genuine distortion in the constitutional system, an exaggerated sense of presidential power and prerogative and acquiescence by a Republican Congress in the face of the first unified Republican government since Dwight Eisenhower.”

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Elizabeth Warren’s First Senate Banking Committee Hearing

Pic of the Moment

Democratic Underground

Senator Warren: ’Why aren’t more bank execs in jail?’

The Senator says, “I’m just concerned that too big to fail has become too big for trial.”

“Too big for trial,” that’s a powerful tagline to hit the Goldman Sachs crowd with. It’s a brilliant turn of phrase.

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Jindal: End ‘dumbed-down conservatism’

Louisiana Gov. Bobby Jindal speaks at a Republican Party of Arkansas fund raising dinner in Hot Springs, Ark., Friday, July 27, 2012. | AP Photo

http://www.politico.com/news/stories/1112/83743.html#ixzz2C86bzb3H

Louisiana Gov. Bobby Jindal on Monday called on Republicans to “stop being the stupid party” and make a concerted effort to reach a broader swath of voters with an inclusive economic message that pre-empts efforts to caricature the GOP as the party of the rich.

In his first interview since his party’s electoral thumping last week, Jindal urged Republicans to both reject anti-intellectualism and embrace a populist-tinged reform approach that he said would mitigate what exit polls show was one of President Barack Obama’s most effective lines of attack against Mitt Romney.

“We’ve got to make sure that we are not the party of big business, big banks, big Wall Street bailouts, big corporate loopholes, big anything,” Jindal told POLITICO in a 45-minute telephone interview. “We cannot be, we must not be, the party that simply protects the rich so they get to keep their toys.”

He was just as blunt on how the GOP should speak to voters, criticizing his party for offending and speaking down to much of the electorate.

“It is no secret we had a number of Republicans damage our brand this year with offensive, bizarre comments — enough of that,” Jindal said. “It’s not going to be the last time anyone says something stupid within our party, but it can’t be tolerated within our party. We’ve also had enough of this dumbed-down conservatism. We need to stop being simplistic, we need to trust the intelligence of the American people and we need to stop insulting the intelligence of the voters.”

Continue reading here: http://www.politico.com/news/stories/1112/83743.html#ixzz2C86bzb3H

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New Obama Ad Goes After Mitt Romney On Big Bird

 

Obama Ad Big Bird

Politics 2012…

The Huffington Post

The Obama campaign is out with a new TV ad, going after one of Mitt Romney’s most memorable lines from last week’s presidential debate: his desire to cut funding for PBS and its beloved Big Bird.

Since the debate — which Romney was widely acknowledged to have won — President Barack Obama has been campaigning around the country, saying his GOP challenger “plans to let Wall Street run wild again, but he’s bringing the hammer down on Sesame Street.”

Elmo, you better make a run for it!” joked Obama last week at a campaign event.

The latest tongue-in-cheek ad shows pictures of notoriously corrupt financial figures — Bernie Madoff, Ken Lay and Dennis Kozlowski — and states there is an “evil genius” who towered over them.

“One man has the guts to speak his name,” says the narrator, with the ad then flashing to Romney saying “Big Bird” repeatedly — followed by Big Bird cheerfully saying his own name.

“Big, yellow, a menace to our economy. Mitt Romney knows it’s not Wall Street you have to worry about it, it’s Sesame Street,” adds the narrator.

The ad ends with a cute shot of Big Bird in his nest, with his teddy bear, sleeping: “Mitt Romney, taking on our enemies no matter where they nest.”

Continue reading below the video…

 

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Justice Dept. Ends Investigation Into Goldman Sachs Mortgage Abuses Without Pressing Charges

 

 

After four years of investigating Goldman Sachs’ blatant mortgage abuses, the crooks go free.

What the heck does this say to the next round of crooks coming out of Wall Street with their derivatives and toxic debris.

People go to jail for stealing a loaf of bread while others stay free after stealing from the entire global finance system and simply walk away unscathed.

This is one of the few things I don’t like about this administration.  Some people say they are beholden to the Banks for helping to get Obama elected in 2008.  I tend to believe that, but wonder why Obama is still in the tank with Goldman Sachs, et al.   Now, they refuse to endorse or support Obama’s bid for a second term…

Think Progress

After a year-long investigation into Goldman Sachs, the bank singled out by a Senate investigative committee for its abusive mortgage practices in the run-up to the financial crisis, the Justice Department announced Friday that it would not press charges against the bank. Goldman Sachs became of the face of widespread mortgage fraud and abuse that led to the subprime mortgage crisis when evidence that it had made trades described by its own bankers as “shitty deals” came to light during a Senate investigation in 2011.

The Department of Justice, however, concluded that it did not have enough evidence to meet the “burden of proof” required for charges, the Wall Street Journal reports:

“Based on the law and evidence as they exist at this time, there is not a viable basis to bring a criminal prosecution with respect to Goldman Sachs or its employees in regard to the allegations set forth in the report,” the statement read. [...]

In a statement Thursday, Goldman said: “We are pleased that this matter is behind us.”

DOJ’s investigation began after an April 2011 report from the Senate Permanent Committee on Investigations revealed that Goldman Sachs had pushed its clients to make trades on risky mortgage-backed securities and credit default swaps even as the bank was betting the same securities would lose value. Though Goldman Sachs was “doing God’s work,” according to chief executive Lloyd Blankfein, other bankers described pushing “shitty deals” on customers. In March of this year, a Goldman Sachs trader lambasted the bank’s “toxic and destructive” culture in a scathing resignation editorial in the New York Times; a former Goldman partner followed up the next week by admitting that the bank’s “commercial animals” had duped customers and peddled “junk” to its clients.

The Securities and Exchange Commission also declined to press charges related to the bank’s role in a $1.3 billion sale of mortgage-backed securities, a reversal from last month when it indicated that it would recommend criminal prosecution. In July, Goldman settled a civil suit with the SEC for $550 million, and it faced sanctions from the Federal Reserve in September.

DOJ reserved the right to re-open the case and press charges should new evidence emerges, but for now, the case seems the latest in a string of them in which the biggest purveyors of the toxic assets that led to the financial crisis walk away with minimal penalties and, in many cases, no penalty at all.

 

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Wall Street Executives Believe Employees Need To Engage In Illegal Behavior To Succeed

So it looks like those guys will be doing “business as usual” (circa 2000-2008) with impunity.  Back in 2008 the outgoing Bush administration deemed the several large banks involved in the crash too big to fail.  Yet, the strongest of those banks have gobbled up the weaker banks and now the three or four major banks left are too big to fail on steroids.

It appears these banks can do whatever they want because the same government that they tend to despise will bail them out once again.  I doubt this problem is going to be resolved through the next presidential term, regardless of whose in office.

The following report on a survey conducted by the law firm of Labaton Sucharow reveals a lot about current attitudes of Wall Street Executives regarding illegal behavior and regulations, which they are adamantly against.  After all, how can they continue their illegal activities with so many regulators snooping around on them all the time?

Think Progress

British and U.S. authorities are both now investigating Barclays and other banks for manipulating the London InterBank Offered Rate, an interest rate that is a benchmark for a host of financial products around the world. Regulators charge that the banks rigged the interest rate’s movements in order to profit and to make themselves look healthier during the financial crisis of 2008 than they actually were.

This comes on the heels of JP Morgan losing billions of dollars chasing profits with trades that were meant to reduce risk, and, of course, is just a few years removed from a crisis caused in large part by Wall Street malfeasance. But according to a survey by the whistleblower law firm Labaton Sucharow, Wall Street executives believe this is just part of the financial business. In fact, nearly one quarter of survey respondents said that financial services employees need to be unethical or engage in illegal behavior in order to be successful:

In a survey of 500 senior executives in the United States and the UK, 26 percent of respondents said they had observed or had firsthand knowledge of wrongdoing in the workplace, while 24 percent said they believed financial services professionals may need to engage in unethical or illegal conduct to be successful.

Sixteen percent of respondents said they would commit insider trading if they could get away with it, according to Labaton Sucharow. And 30 percent said their compensation plans created pressure to compromise ethical standards or violate the law.

Big banks, of course, have continued to fight reforms to the financial regulatory framework, even in the wake of the crash of 2008. But if this survey is any indication, Wall Street needs a mentality change, along with stricter supervision.

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5 Reasons Americans Are Right To Blame Bush For The Economy

I’m not sure why this hasn’t been addressed by conservative or progressive news media before now.  However, better late than never

Think Progress

Sixty-eight percent of Americans — including 49 percent of Republicans — say President George W. Bush is responsible for the state of today’s economy, a new Gallup poll finds.

Indeed, the country is still reeling from Bush’s disastrous economic stewardship. His irresponsible tax cuts and deregulatory policies have contributed significantly to the slow recovery and are partly responsible for the nation’s economic plight. Here are 5 reasons why:

1. Deregulated Wall Street: It was a great time to be a Wall Street executive during the Bush administration. Sweeping financial deregulation helped build the housing bubble and allowed financial institutions to pursue risky trades unchecked. In fact, Bush eliminated the rules that allowed Wall Street to cause the financial crash that plunged the nation into the Great Recession.

2. Cut Taxes For The Wealthy: The Bush tax cuts — over 50 percent of which benefited the richest 5 percent of American taxpayers — cost about $2.5 trillion over the decade after they were enacted. Ten years later, Bush’s tax cuts are still the main driving factor of the national debt:

3. Ran Up A Tab On Two Wars: The wars in Iraq and Afghanistan have cost the country trillions of dollars. Combined with Bush’s tax cuts, war spending was amain factor in blowing up the deficit and spending the surplus accumulated under Clinton. Lawmakers now use the deficit as an excuse for inaction.

4. Left Homeowners In A Lurch: While Bush was happy to help out the banks in the wake of the housing crisis, he did little to assist struggling homeowners.Hope For Homeowners, Bush’s proposal to assist those struggling with their mortgages, was a colossal failure; in its first six months, it helped just one homeowner renegotiate his mortgage. Many mortgage holders — 15.7 million or, one in three — are still underwater today.

5. Weakened Workers: Bush weakened worker safety regulations and collective bargaining rights under the Occupational Safety and Health Administration (OSHA) and the Department of Labor throughout his time in office. Today, corporations are back to making record profits, while workers’ incomes are falling.

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Robert Reich Explains How Mitt Romney Got Obscenely Rich

Robert Reich‘s presentations are really good.

Mr. Reich was Bill Clinton’s Secretary of Labor during the latter part of the Clinton Administration.   As Secretary of Labor,  Reich implemented the Family Medical Leave Act (FMLA) among other accomplishments.

Now…How Mitt Romney got obscenely rich…

MoveOn.Org

And it wasn’t by doing good things. Watch:

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Elizabeth Warren: America’s Future ‘Going To Be Very Different Depending On Who’s Governing’

The Huffington Post

The Obama 2012 campaign on Friday released footage of Elizabeth Warren’s interview for “The Road We’ve Traveled,” the upcoming documentary about the Obama presidency.

“Why didn’t someone wave a magic wand and make it all better?” she said. “Because that’s not how the world works. It took a long time to shake the foundations of America’s middle class. But it also means it’s also going to take some time to put it back together.”

Without mentioning names, Warren also took a shot at Obama’s Republican rivals.

“This next election is about the direction that our country takes, it’s about whether or not we are going to be a people that say, ‘I got mine, the rest of you are on your own’,” she said. “What our future looks like is going to be very different depending on who’s governing.”

Warren, who is currently running for U.S. Senate in Massachusetts, is an outspoken advocate for financial reform and a strong critic of the financial institutions involved in the 2008 economic crash. A founding figure of the Consumer Protection Finance Bureau, she once said that Wall Street “broke this country.”

Though Warren appears in the film, she isn’t always so supportive of the president. Last week, she told the Washington Blade that Obama “needs to evolve” on same sex marriage.

Watch the full clip above.

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Blame Oil Speculators, Not Obama, For Rising Oil Prices

Explaining why gas prices spiked in the last week or so is not easy.

Most people simply tune out from the technical and Wall Street explanations for the sudden rise in gasoline pricing.  They’d rather believe the GOP lie that President Obama is responsible for price spike.

The following piece from Think Progress puts it all into perspective…

Think Progress

As the improving economy has robbed conservatives of their chief talking point against President Obama, they’ve turned to rising gas prices as the next problem to pin on the president.

Speaker John Boehner (R-OH) “instructed fellow Republicans to embrace the gas-pump anger,” while Rick Santorum conspiratorially claimed Obama is intentionally pushing up prices to cut carbon emissions. Not to be outdone, Newt Gingrich released a 30-minute video today about how “the Obama administration is so anti‑oil” that they’ve forced the price of gas to go up.

But there’s little truth to claims that Obama has curbed U.S. oil production and driven up gas prices in the process. As NPR noted this morning, the number of drilling rigs in U.S. oil fields has quadrupled under Obama and domestic oil production hit an 8-year high in 2011. For the first time in 60 years, the U.S. is now a net fuel exporter.

Oil demand was actually down 4.6 percent last week over last year, while the supply of gasoline has actually increased slightly since a year ago. So why are gas prices so high? As McClatchy’s Kevin Hall explains today, there is a systemic problem: speculation.

Energy futures markets serve a legitimate role in helping producers (like oil companies) and big end users (like airlines) hedge against price volatility, but lately, they’ve been taken over by Wall Street speculators who never intend to actually use the fuel they’re betting on.

As Hall reports:

Historically, financial speculators accounted for about 30 percent of oil trading in commodity markets, while producers and end users made up about 70 percent. Today it’s almost the reverse.

A McClatchy review of the latest Commitment of Traders report from the Commodity Futures Trading Commission, which regulates oil trading, shows that producers and merchants made up just 36 percent of all contracts traded in the week ending Feb. 14 while speculators who will never take delivery of the oil made up 64 percent.

Many experts, lawmakers (Democratic and Republican), and government regulators have expressed similar warnings.

Finally, after many delays, the government board responsible for regulating commodity futures markets finalized a rule in October to limit speculation, a power it was given by the Dodd-Frank Wall street reform law. However, the rule won’t go into effect until next October, as the Commodity Futures Trading Commission (CFTC) needs to collect “one year of interest data” first. The financial industry is fighting the new rule, but just today, the CFTC took action against a company in different market, providing an example of how the energy regulation can effectively work.

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