Skip to main content

View Diary: Heads are exploding on Wall Street with Elizabeth Warren winning Senate Banking Committee seat (215 comments)

Comment Preferences

  •  This is a wonderful development. (8+ / 0-)

    Talk about the law of unintended consequences. If Republicans had let Senator-elect Warren be the head of the Consumer Financial Protection Bureau they could have kept her under their thumb. Now she ownz them.

    This is a the first punch of a potential 1-2 punch by the Democrats. The second punch: President Obama appointing Michael Bloomberg as Treasury Secretary.

    Few if any people are considering him. He would make a great Treasury Secretary.

    There are just a few key economic issues facing our nation: people are talking about one of them and letting it drown on the real issue.

    Those issues:

    + Regulation of the financial services industries (the real issue)
    + The fiscal cliff (the noise issue)

    Before I start, consider the following: what caused our economy to crash and our financial services industry to tiptoe to the edge of the abyss: it was improper regulation of the financial services industry and Republican acting on the belief that the markets, when left to their own devices, will regulate themselves.

    And markets did regulate themselves, in spades.

    + Regulation of the financial services issue is the most important issue we face. It will have the longest lasting consequences for our nation.

    The Treasury Secretary should be someone with intimate knowledge of those markets and the issues involved to regulate those industries. This person should also be highly regarded by those in those industries and by the very serious people in the political arena. Ideally the candidate would be someone who can not be co-opted by the players involved including politicians, bankers, insurers, hedge fund managers, financial exchanges and markets, and lobbyists.

    Michael Bloomberg is an ideal candidate. He's spent his entire career in the financial services industry. He's achieved incredible success. He personally is worth more than all members of Congress and Mitt Romney combined by a factor of at least five. He owes them nothing and can't be bought by them. And members of the financial services industry respect him; I think they fear him more than like him - and that's a good thing.

    + The fiscal cliff is a noise issue created by the political class. We don't need a Washington insider to solve this problem. Bloomberg is smart and experienced enough to address the policy side of this problem. I think he's savvy enough address the political side of this issue as well.

    If the Republicans are successful in getting the President to appoint a Washington insider with "expertise in tax and fiscal issues" then Republicans will have won a major victory for their primary clients in the financial services industry. I really believe this is one reason why they keep the fiscal cliff nonsense alive - to distract the President from the real issue: regulation of the financial services industry.

    I will add one more thing in Bloomberg's favor. To paraphrase comments on FDR as president: Michael Bloomberg has both a first rate intellect and a first rate temperament. Starting from nothing he and his partners built an empire providing information services to the financial services markets. He didn't achieve this level of success by hiring second and third rate employees.

    Warren and Bloomberg: what a 1-2 punch that would be.

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site