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Obama’s Common Sense Approach To Financial Reform Mirrors Health Care Reform: Hold On To Your Wallet

In his Cooper Union Speech, President Obama called for common sense financial reforms. He was talking to a bunch of the thugs on Wall Street, voracious zombies who don’t deal in common sense any more than the leeches at Wellpoint. They deal in profits, and there is absolutely nothing they won’t do to protect their ability to profit at the expense of every single human on the planet, including their cubicle mates.

The common sense reforms the President supports are meaningless in the face of the depredations of Wall Street which have destroyed the lives and fortunes of millions of their fellow citizens.

1. A liquidation authority for institutions of a certain size, which will shut them down with the “… least amount of collateral damage to innocent people and businesses”. I’m sure you and your grandkids can afford that.

2. “Some limits” on the size of banks and the kinds of risks they can take, set by regulators who are appointed by the same people who did nothing last time.

3. Transparency in derivatives. These apply only to “standard” derivatives, an undefined term, to be defined by regulators appointed by the same people who watched Wall Street set fire to your money.

4. Consumer protection. The President thinks banks want to compete offering better products rather than selling confusing and expensive products. OK, that’s funny.

5. Shareholder “say on pay”, and more power to act in corporate elections if the SEC allows it. Mutual funds own most of the stock of these giants, and they have their hands in your pockets just like Wall Street does.

I’m having trouble believing my eyes. This pathetic set of reforms is the change we get to deal with the worst financial disaster in decades? The economy was crushed by an industry which functions on fraud, cheating consumers, wasting money on obviously fraudulent loans, paying itself gigantic bonuses, setting up transactions to screw their customers, raising interest and fees to the sky at the expense of a damaged group of workers, and this is what we get?

This is pathetic. No wonder the Republicans are willing to negotiate from this ludicrous starting point. By the time the negotiations are over, we can expect a mandate that each of us open three credit card accounts and use them for all purchases, paying 30% interest compounded daily, with no grace period. And if you don’t, the IRS will collect a fee equal to 1% of your income to pay for the salaries of the banksters and their lobbyists.

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