Well folks, that's the ballgame. Secretary Timothy Geithner, long time Wall Street flunkie (first time U.S Treasury Secretary) has made it clear. He loves the FIRE (finance, insurance, real estate) economy and doesn't want it diminshed. He's actually IN FAVOR of it's massively distorting and destabilizing influence with no benefit.
For those wondering why Geithner sabotaged real financial reform, you have your answer.
"I don't have any enthusiasm for ... trying to shrink the relative importance of the financial system in our economy as a test of reform, because we have to think about the fact that we operate in the broader world," Geithner said. "It's the same thing for Microsoft or anything else. We want U.S. firms to benefit from that." He continued: "Now financial firms are different because of the risk, but you can contain that through regulation." This was the purpose of the recent financial reform, he said. In effect, Geithner was arguing that we should be as comfortable linking the fate of our economy to Wall Street as to automakers or Silicon Valley.
What's the difference between Wall Street and automakers or silicon valley? Two of those groups produce useful products and services the other creates crisis by using the financial markets for gambling and shifts the winnings to their Top 1% clients.
This probably makes it "official" the Obama Administration is on Wall Street's side and sees Wall Street not only as important than Main Street, but more so.
A bet on Geithner going forward is a bet that the financial sector can regain its democratic legitimacy without being shrunk or radically restructured. Perhaps as much as the successes of the past two years, Geithner’s legacy will ultimately depend on how well Wall Street meets that test.
Yes America would you like to get screwed again? To have FIRE - who make 40% of all campaign contributions - continue to buy your congress and President, get bailed out by said politicians in order to buy them again? What could go wrong?
Is this Change We Can Believe In? Methinks no. More of the same, stay the course, keep going with the FIRE economy.
Burn Baby Burn.