Gird you loins people, because what we 'learned' from the Health Care Reform battle will pale in comparison to what is about to come: Will President Obama lead the 'narrative and set the tone' for the Senate prior to the upcoming Senate battle that is about to take place on the floor of the Senate, and learn from his 'mistakes' of the past on HRC? 'This Time' will he have to courage to give a concerted and strong, well planned out sense of direction and vision for the country prior to allowing the Senate to turn this monumental battle into another 8-6 months of utter chaos?
This is a moment where President Obama has the opportunity and responsibility to show 'true leadership' by giving a historical speech to our nation and the Senate to state his overall and specific agenda for the Nation of those issues that are necessary for, as a point for point set of actions he deems as 'unequivocal requirements' that the Senate must implement based on the 'risky unregulated behavior of the past' that must no longer be tolerated to ensure that trust and sane financial practices, without endless loopholes, are put 'back' into place for the protection of the American people and to regain the trust and reputation of our nation world wide with our European allies.
Rather than go through a litany of blame and just how President Obama 'left the Senate and the House' to hash out months and months of chaos that allowed the Republicans and 'Tea Baggers From Hell' the opportunity to turn our nation into a daily 'Jerry Springer Show' during HCR, what I am trying to convey in this diary is this:
Let's learn from this last and valuable lesson, and take the offensive from the 'get go'. The worst thing that President Obama could do is to allow the now 'under siege' Treasurer, Timothy Geithner or the former Chairman of the Federal Reserve, Paul Volcker (who are at 'odds' with one another, to say the least) to be his 'front men, or 'Generals' on this particular 'Battlefield.'
This is one battle that President Obama can no longer avoid and after all the failed practices of both Geithner, Summers, Bernanke and Volcker (who is just being put out there 'for show' with no real power) Obama should avoid allowing anyone but himself to stand up to the plate at all costs.
This is and must be a time and moment in history when President Obama must take a 'stand,' with clearly defined strong regulatory reform: No bullshit 'trial balloons,' No putting Geithner/Volckner out there to play the tiresome good cop/bad copy game, No Rahm Emanuel Blue Dogging the Republicans behind the 'scenes' while President Obama gives 'lip service' to the Democratic Wing of the Democratic Party and progressives...no more of that shit. It's time for clearly defined actions and clearly defined leadership on President Obama's part.
Number One: President Obama could begin this new vision and narrative to give the Senate a sense of direction as to where the greatest 'protections' and a real meaningful sense of regaining trust in our financial systems again by standing up for a completely 'Independent Consumer Financial Protection Agency' -
This agency does not belong under the Federal Reserve, who failed miserably in the 'regulation' of the 'financial meltdown'. President Obama needs to ensure that those that 'Regulate' for the American people can be trusted as an 'outside' group of 'insiders' who are not currently part of the system of 'revolving door business as usual players' who have proven that they have lost their credibility based on 'failure.' We need new blood in the system watching the foxes that have already eaten all the chickens and eggs.
Interestingly, they seem to be very actively considering how the bill can be improved both on the floor of the Senate and then in conference committee, where whatever the Senate passes will have to be reconciled with the bill that the House passed last year. At least in terms of the CFPA, Sen. Jack Reed (D-RI) has said that he is going to try and amend the bill on the floor if the Banking Committee drops an independent agency. House Financial Services Chairman Barney Frank (D-MA) has also said that he won’t bring a bill without a strong CFPA to the house floor.
So maybe the House will be where the CFPA and the Volcker rule ultimately survive the legislative meat-grinder? This makes me slightly nervous, considering that the CFPA barely survived in the House the first time around (with Republicans joining a cohort of conservative Democrats to propose an amendment forming a toothless consumer protection council instead).
http://wonkroom.thinkprogress.org/...
Imagine if President Obama were to give a speech setting the tone for the CFPA with Elizabeth Warren standing on one side of him, and publicly lauding her and embracing her and Senator Jack Reed as 'his partners' in a true independent and trustworthy Consumer Finance Protection Agency? That is a public relations winner that would set a strong tone of real leadership and real change.
Number Two: Force the Banks to Implement 'Real Foreclosure Relief'
At this point, everyone knows that the TARP money, that was 'supposed' to be for the purpose of providing relief for 'Home Owners' ended up as nothing more than a ruse in the ultimate 'bait and switch' scheme to provide the Banks/Investment Houses with huge profits that provided the outrageous 'bonuses' and saved their 'asses' after they tanked the economy. Now it is way past time, to demand a decent way to help the huge amount of 'under water' homeowners and those in foreclosure due to the 'predatory lending' that was 'ignored' by 'paid off regulators'
The average homeowner may owe their lender as much as two-and-a-half times more than the home is worth, the Office of the Special Inspector General for the Troubled Asset Relief Program states in its new report examining the administration's year-old $75 billion Home Affordable Modification Program, citing November data from Fannie Mae. Yet the program doesn't address this problem of negative equity -- commonly referred to as being "underwater" -- according to the report. The administration's effort has been touted as a way to stem the rising tide of foreclosures by reducing monthly payments for up to four million troubled borrowers.
But one essential method of helping underwater homeowners -- principal reductions -- has not been addressed by the program. Mortgage servicers forgave principal on less than two percent of HAMP trial loans, the report notes. But before HAMP, 10 percent of servicer-sponsored mortgage modifications forgave principal, according to the report. Servicers are incentivized to lower monthly payments by getting cash for every sustainable mortgage modification. "HAMP allows principal reduction, but it is not typically implemented in practice," the report states. This data had never been publicly disclosed prior to Tuesday.
http://www.huffingtonpost.com/...
It is absolutely despicable that after all of this time, and after Wall Street and the Banks continue to make billions off of the same 'home owners' they bet against who lost their jobs, their retirement funds, their savings, and their homes, that President Obama and Timothy Geithner has not only 'hidden this information that was just released about the failed HAMP program' but in many cases, the Banks are making more money off of the foreclosures through this program than the families that have been foreclosed upon, who have lost their life long and hard won decent credit ratings, and it must stop.
It is way past time for President Obama to stand up and make up the difference and demand an equitable 'foreclosure and lost equity program' based on the transgressions and criminal activity of our key financial sectors which continue to reek havoc on the Middle Class.
The officials spent a lot of time emphasizing that the steps they took to rescue the financial system, while politically unpopular, were necessary to prevent a bigger mess, and how financial reforms are tough to push through because their benefits are fairly broad and non-specific, while reform adversely affects the very concentrated, powerful banking and investment industry. So I was moderately heartened to hear that the administration is looking at ways to reduce mortgage principal for homeowners who are underwater, as FDIC Chairman Sheila Bair is trying to do (although Treasury Spokesman Andrew Williams clarified later that Treasury "is not poised to roll out a major principal write-down program"). As I’ve pointed out before, this is a good way to take on the banks and give people a tangible result that will lend credibility to the wider financial reform fight.
http://wonkroom.thinkprogress.org/...
If 'the Treasury' is not poised to roll out a major principal write-down program as their spokesman Andrew William says, then perhaps the latest news that has been hidden for months on the abject failure of the Fake HAMP Program that was never really serious or implemented in the first place:
"HAMP allows principal reduction, but it is not typically implemented in practice," the report states. This data had never been publicly disclosed prior to Tuesday.
Should be a big wake up call, because I can assure you, that all of those people that were depending on this HAMP program are more than likely the exact same 'new tea bagger members' that are angry as hell, and have a right to be.
So, President Obama, it's time to at the very least: Make a 'real' plan that makes up the difference between what the taxpayers have paid off the Banks and Wall Street to save their asses, and pay them insane bonuses, so that the 'homeowners' of this country at least feel that 'someone in Washington DC' (that would be you President Obama, not Timothy Geithner) is finally going to demand that a 'real foreclosure program, is on your agenda that you will plan, implement and stand behind in your new speech and narrative to 'Lead the Senate' as to where you expect them to reach for on behalf of the nation.
Number Three: Before the Republicans have a chance to 'dig in the ditch' of AIG and Lehman Bros., there certainly should be a statement by President Obama on Senator Dodd's request to Attorney General Holder to conduct an investigation on not just Lehman Bros. and other counter parties and firms that are conducting similar criminal activities, but at least an acknowledgment of Senator Dodd's request, but a statement by the President of his public support of Attorney General Holder's constitutional duty to perform this investigation in the full light of day with President Obama's insistence that this investigation should be a priority of the highest order.
Underline this: "LITTLE HAS BEEN DONE." And, on the financial catastrophe in our nation, this is a well know factor, and to simply assume or pretend that 82 percent of Americans are now deeply in favor of strict oversight and meaningful reform of our key financial markets without true and strong 'stand up and be fucking counted' by President Obama NOW, would be a loss beyond the pale.
I cringe when I think back about how President Obama originally fought for a 'Public Option' and originally fought against Big Pharma (on video) and then refused to stand up for either and threw the entire Health Care Reform fight into the Roman Colosseum, that turned into the worst and horrifying 'Gladiators eating each other Tea Bagger Republican Jerry Springer American debacle' that should NOT have been allowed to have occurred. And President Obama must avoid the same chaos by outlining very specific 'financial reform' items and give a national speech PRIOR to the Senate battle on the floor.
Stand UP NOW President Obama and realize that you have 'gained the power to lead with full political capital from your hard won victory with HCR' and learn from that lesson, to put a damn 'and straight forward agenda out there' first and foremost for real financial reform' BEFORE THE BATTLE BEGINS.
DO NOT BLOW THE MO JO - USE IT WITH LEADERSHIP AND VISION AND DIRECTION:
Progressives don't seem to appreciate the scale of this problem or how it could be turned into THE issue to organize around. In contrast, the right just wants to ignore it because it believes the private sector can do no wrong. "It doesn't take a rocket scientist -- and certainly not an accountant -- to deduce one thing from the Lehman scandal. The misleading of regulators, investors and the public did not happen in isolation. Like Enron, WorldCom, Tyco, Wachovia, Washington Mutual, Fannie/Freddie, CDOs, Bear, AIG, bond insurers, GM, Chrysler, CIT, California, Greece and the countless others wrapped up in this crisis, Lehman is "symptomatic of a banking system bent on finding ways to hide risk from the investing public and regulatory community." ...It should be clear to all that a deeper examination of the relationship between all the audit firms and their clients on the issue of risk-obfuscation is needed. Limiting any inquiry to Lehman alone is inadequate."
The situation is bad and getting worse. The Wall Street Journal reported recently on its front page about woes in the banking sector, noting banks are experiencing the biggest full year decline in 67 years. Just two factoids to put in your don't bank on the banks file: 16 year high of 702 banks at risk, according to the FDIC and the highest level of loans at least three months past due ever recorded. So far the government response has been less than forceful when it comes to the underlying frauds---no serious Pecora type investigation accompanied by some talk of beefing up white collar crime task forces but with few prosecutions so far. President Obama has mentioned this but not yet made it an issue. It seems to have become a 'ho-hummer.' Our fearless media is also downplaying this disaster because they don't have a first class, high profile villain like Bernie Madoff to use to personalize the problem.
In other words, it's shady business as usual with more businesses going out of business. And alongside this failure is a growing meltdown for what used to be the middle class and working class. Quite reasonably, the public is becoming angrier because jobs are not coming back. And quiet as it is kept, they may not be coming back. Writes Mark Zandi, "The job losses over the past three years have been across a wide range of industries and from coast to coast. And if you've lost your job, in all likelihood you will remain unemployed for longer than in any period since the Great Depression." Explains Eric Janzen of iTulip.com, "The cumulative and lasting damage caused by two consecutive, predictable and thus preventable asset bubbles is starting to dawn on their victims. Some call it the "new normal." Millions of Americans have not recovered the income or job status they enjoyed a decade ago.' No Jobs, seething unrest and a slo-go approach to reform are a toxic mix. I feel like a broken record hoping growing outrage will finally turn into action. People feel robbed because they are being robbed. They are losing jobs, homes and hope. Many are beaten down but others are slowly rising up. It's one thing to feel good fulminating against a love affair with Capitalism. It's another to realize that's all we got, and so we must, once again, try to drive the corrupt money changers and banksters out of the system. For progressives who protested on health care, isn't it time to engage the real pain in our economy? Has ignoring the crime of our time also become "the new normal?"
http://www.huffingtonpost.com/...
And I suppose the quote below best encompasses the point of this diary. It is past time for a 'new fair break' for the Middle Class, for the downtrodden and all those that lost so very much for the greatest financial catastrophe our nation has ever known. It is time for the scales of justice to be put at least, in our favor after the 'price' that the taxpayers have been burdened with, and after they were 'raped and pillaged' without having a 'vote' as to having their lives destroyed, but instead were 'used' as nothing less than 'chattel' to be rounded up and slaughtered by the Robber Barons who literally 'stole' from the great citizens of our nation. 'So called Regulators' were paid off with huge bonuses for 'looking the other way.'
WASHINGTON – As banks gambled on the risky mortgages that helped create the worst financial crisis in generations, the U.S. government handed out millions of dollars in bonuses to regulators at agencies that missed or ignored warning signs that the system was on the verge of a meltdown.
The bonuses, detailed in payroll data released to The Associated Press, are the latest evidence of the government's false sense of security during the go-go days of the financial boom. Just as bank executives got bonuses despite taking on dangerous amounts of risk, regulators got taxpayer-funded bonuses for doing "superior" work monitoring the banks.
The bonuses, released in response to a Freedom of Information Act request, were part of a reward program little known outside the government. Some government regulators got tens of thousands of dollars in perks, boosting their salaries by almost 25 percent. Often, though, rewards amounted to just a few hundred dollars for employees who came up with good ideas. During the 2003-06 boom, the three agencies that supervise most U.S. banks — the Federal Deposit Insurance Corp., the Office of Thrift Supervision and the Office of the Comptroller of the Currency — gave out at least $19 million in bonuses, records show.
Nearly all that money was spent recognizing "superior" performance. The largest share, more than $8.4 million, went to financial examiners, those employees and managers who scrutinize internal bank documents and sound the first alarms. Analysts, auditors, economists and criminal investigators also got awards.
http://news.yahoo.com/...
A new Great Depression rests deeply and wearily upon the people of this nation, and it is not of their doing, and they deserve to have a President that has the courage to 'Lead, to demand that the Senate understands the President's vision and agenda to 'reset' the button on trust and accountability in our government once again.
People feel robbed because they are being robbed. They are losing jobs, homes and hope. Many are beaten down but others are slowly rising up.
The lessons learned from the Health Care Reform fight, must not be squandered this time around. The faith of our four fathers demands that a sense of justice, trust and accountability must prevail, and now it is up to President Obama to ensure, that the American people are once again protected from this point on, to never again allow the financial system to ruin our economy and people's lives the way that they have.
It's time to lead Mr. President. Please do not fail us now that you have defended us in our Health Care battle. We are depending on your hard leaned lessons that we stood behind, and now will come the greatest battle of all.
A basic sense of fairness, protection and justice for those that lost everything, because our government failed us and now, must be made to account for those losses and the catastrophe that no one has accepted responsibility for, let alone held accountable.
Sending the agenda for new and strict 'financial reform' in a national speech before the Senate takes this battle to the floor and guts it without a sense of 'direction and leadership' from President Obama would be a disgrace after what we have learned and experienced in the HCR battle, and after the 'critical mass of corruption' in our key financial markets, that must be addressed by President Obama.
It's the right thing to do, and there's no excuse for not providing leadership and a vision for re-establishing credibility and trust in our financial sectors that will in the future, protect Americans from controlled fraud and predatory lending. It is way past time to 'clean up' Wall Street and I hope that our President does not lose this opportunity to lead the nation in the 'right direction.'
Thanks.