If you were hoping that either wing of the Bankers-Own-This-Place Party that controls both Democrats and Republicans would use the federal government to compel the nation’s banks to assist in economic recovery, their respective apologists sent clear messages: America’s Mega-Banks have nothing to fear from them.
On ABC’s This Week, Larry Summers, to whom the banks owe a great deal, told us he thought the banks needed a reminder from the President of how much they owe the country. Meanwhile Eric Cantor said he wants Obama to assure the banks he understands that government, which last winter provided trillions to cover their reckless risks, is discouraging their risk taking.
From Stephanopoulos, quoting Summers, then Cantor:
“President Obama is going to be talking with them about what they can do to support enhanced lending to customers across the country.
"We were there for them. And the banks need to do everything they can to be sure they’re there for customers across this country.”
House Minority Whip Eric Cantor agreed that there is a problem with scarce lending, but didn’t blame the bankers.
Cantor told me there is, “no question that there is a still a deprivation of credit in this country for small businesses. And when the president meets with the bankers, I hope that the discussion centers on what seems to be a real overreaction, if you will, on the part of some auditors in the regulatory arena that are looking at risk taking as something that just shouldn’t be done at all.”
Ah, yes, because as everyone knows, the banks nearly crashed the world’s economy because government exercised too much oversight; but now that the banking part of the crisis is over, we should fix this by exercising less oversight so the banks can give back a tiny fraction of what we gave them. Because saying "please" is our best strategy.
These people live on another planet.
Update: I’m wondering why the Administration thought it would be helpful to have Larry Summers appear on Sunday’s shows. With the rational part of the country wondering why the Administration isn’t building public and Congressional support for a plan to provide at least 300,000 new jobs a month for the next five years — per Krugman, that’s what it would take to get back even (or maybe it takes 7 years?) — why would they send Summers out to crow that unemployment might actually turn positive by some tiny amount by next Spring?
Update II. Apparently, Summers’ mission was to say that for now job creation is more important than the deficit. That’s good to hear, but the better experts have been saying that for months, while the economic team coddled the deficit scolds, making the political task harder. Where’s the jobs plan for reducing unemployment to below 7-8 percent by next Fall, and where’s the Administration’s commitment to hold the economic team responsible for getting it done?



27 Comments







If only they did.
Help small businesses? Since when has that been a trend?
We entered the world of big-box behemoths, and chains decades ago.
What’s all this talk about lending to small businesses? Everyone just needs to go out and buy a Wall Street franchise for whatever, from a cleaning service, retail, food, trash removal, ad nauseum.
I am just wondering who will head up the Green Revolution monopolies, subsidiaries of Home Depot, Lowe’s, or WalMart?
Sorry, but the concept of small business with few exceptions is so Yester Year. The sooner we admit this, the better. It’s all chains now, baby, chains.
My thoughts exactly when I had the misfortune to see John Ensign live this afternoon on CSpan extolling small businesses.
WTF?
Since WHEN has he or his ilk given a —- about the small business person-unless paying off mistresses is now considered a cottage industry?
How long do you think before Obama, Summers and Rahm admit the Banks Punked them?
to answer that question, answer this one, from Krugman:
http://krugman.blogs.nytimes.com/2009/12/11/what-did-democrats-believe/
Helicopter Ben, Summers, Geithner ah I get it the Obama team is the Banks! Obama is going to have to figure out on his own that his team are tools of the banks.
Is anyone in the WH reading the blogs we were doubting Helicopter Ben, Summers and Geithner since the beginning.
I don’t believe that they will ever admit it. Neither of them has sufficient humility for something like that.
When you loan people lots of money and they forget to pay you before they give themselves million dollar bonuses or actually spend millions on lobbyists against you.
Then Reminders are unnecessary its time to fire some people sans benefits, stock options, golden parachutes of any kind.
Then we release everything we find on their computers to the public…I’m sure a few trial lawyers would be interested.
This has been the first edition of WWMDD or What Would Mayor Daley Do.
Obama and Rahm are embarrassing da City!
I cant believe that people actually listen to what Eric Cantor has to say.
Larry Summers should have been removed, His opinions are much of Obama’s and our problems.
Hey I pay allot of attention to what they all say cause I want to run the other way:) Geithner, Summers and Ben bail out the banks but won’t open the banks or the Feds books?
That is what I call very suspicious behavior investing in the banks then is not something I would advise.
I listen to them to. Cantor is a putz, and listening to him is like having your pet hamster talking.
ever so sadly, i agree. he is so annoying that even i agreed with him for a new york second, it would be impossible to admit to agreeing with a talking hamster.
beyond that, i am not sure he gets that if these guys are not accountable they will do this again, and next time they will not get a wooden nickle to pull them out. talk about tanking…they will leave us all destitute. if they were capable of regulating themselves, they would have already. how this escapes an observant hamster i fail to grasp.
Glass Segal could have been reinstated the day after we found out about the crisis. No one has made an actual move to do it.
Fourteen months is a long time to not do anything.
Niether party has our interests at heart, yet we will support both of them while they sell us all down the river.
Your Pet Hamster is possessed by demons of economic stupidity? I wonder if eCHAN knows any exorcisms:)
Serious how is it when the most informed people on the subject not actually in the tank to the banks or the GOP or Dems don’t trust any of your economic experts?
How scary is it when we not Geithner, Summers or Helicopter Ben predicted the banking crisis as soon as Greenspan lowered rates and created the housing boom?
How scary is it when we said that the bank bailout would not help the economy? And then unemployment goes past the 9% Obama’s experts said it would and hits 10%?
One day we will say something BIG on the economy and Obama will actually do it then I’ll stop worrying.
Hey Things! Sounds like all this is relaly getting to You.
Ya can’t expect much from a demonic hamster or a politicain.
The Banks had the Congress bought even without all the guys You mention.
They not only have the COngress bought but States and thier Courts.
A quick story My ninty two year old mother had Her mortgage changed by a broker licenced by the Government. She swares they forged Her signatures and thier seems to be no record of a closing. Yet AM South bank gave them a mortgage for her of 150,000.00 on a house worth about 112 thou. Her payment would have been $1,500.00 a month when she only got 1,400 is SS.
Ocourse She couldn’t pay. Her lawyers fought for Her, and the courts ruled in the BANKS favor of course. They are going to sell Her house out from under Her. The Forida courts had no respect for the laws against taking advantage of the elderly, or the crimes commited against her. The difference between the 86 thou she owed and the 150 mortgage went in someone’s pocket, because She never got a dime out of the difference.
Yet the Republicans keep blaming the problem on people borrowing more than they could pay, and saying the Government made the Banks do it.
The banks are out right criminals, yet our Government keeps saying nothing they did was against the law. One of us doing the same things would have gotten life.
Hubris. Delusion. Spite.
Tighten your belts, Summers is about to reduce the deficit no matter what it takes.
What will look better in 2010 to “them”? Balanced budget or reduced unemployment?
Huh, I was not aware that small business lending was the cause of the Global Economic Unpleasantness. Learn sumpthin’ new ev’ry day.
among many noteworthy accomplishments, summers and friends helped kill 3 million russians via their neoliberal economic policies while part of the clinton administration.
we’re not talking about another planet here. we’re talking about another moral universe.
No, these people own the planet.
This one:
•In the Asian, African and Latin American countries, well over 500 million people are living in what the World Bank has called “absolute poverty”
•Every year 18 million children die of hunger
•For the price of one missile, a school full of hungry children could eat lunch every day for 5 years
•Throughout the 1990′s more than 100 million children died from illness and starvation. Those 100 million deaths could [have been] prevented for the price of ten Stealth bombers, or what the world spends on its military in two days
•The World Health Organization estimates that one-third of the world is well-fed, one-third is under-fed one-third is starving- Since you’ve entered this site at least 200 people have died of starvation.
•One in twelve people worldwide is malnourished, including 160 million children under the age of 5.
•Nearly one in four people, 1.3 billion – a majority of humanity – live on less than $1 per day, while the world’s 358 billionaires have assets exceeding the combined annual incomes of countries with 45 percent of the world’s people. UNICEF
•3 billion people in the world today struggle to survive on US$2/day.
•Malnutrition is implicated in more than half of all child deaths worldwide – a proportion unmatched by any infectious disease since the Black Death
•About 183 million children weigh less than they should for their age
•To satisfy the world’s sanitation and food requirements would cost only US$13 billion- what the people of the United States and the European Union spend on perfume each year.
•The assets of the world’s three richest men are more than the combined GNP of all the least developed countries on the planet.
•Every 3.6 seconds someone dies of hunger
•It is estimated that some 800 million people in the world suffer from hunger and malnutrition, about 100 times as many as those who actually die from it each year.
Do you think statistics like this are just an unfortunate confluence of varilables beyond our control? Do you imagine that very rich and very powerful men and women don’t mass produce the conditions that sustain them?
job creation is ALWAYS more important than the deficit.
Since when is Larry Summers a champion of the US citizenry that does not make more than 100k per year? What a complete farce he is. 800 billion on Citi’s books as as cash in 2007, down to 200 billion in 2008. Not even a hint of investigation of Citi from Congress or Summers. I do not fault Obama for Summers, he is the residue of the Clintons and that is what was available on day 1; as soon as Summers is gone, the better off we shall become.
The banksters from Goldman Sachs, Citigroup, and Morgan Stanley made an open display of their contempt for their paid hireling in the Oval Office by ignoring his “Come to the White House so I can bolster my tanking approval ratings by pretending to yell at you” exercise.
What is “on another planet” is the idea that the bankers/financial ubermench can be shamed into doing something positive for the overall economy. As apparently Obama and Summers seem to believe. “you owe us, guys, for saving your ass.” “oh no, we paid you well to keep us solvent.” yadayadayada.
Somehow I don’t think that emotional appeals to conscience and good will is going to do the trick. Not when dealing with sociopaths and those that love them.
Did you hear the one about teh Cantor’s wife?….Move over, Hadassah Lieberman:
Bank Employing GOP House Leader’s Wife Got Bailout Bucks – ProPublicaJan 23, 2009 … He also said Cantor had never intended the bailout bill to be used to … Richmond office in an office park not far from the Cantors’ home, …
http://www.propublica.org/…/bank-employing-gop-house-leaders-wife-got-bailout-bucks-090123 – Cached – Similar
Employer of Cantor’s Wife Benefited from Bailout | Washington BureauEmployer of Cantor’s Wife Benefited from Bailout. By Neil H. Simon … The fact that the government did not disclose the Cantors’ relationship when … company would probably “not (be) involved in that level of detail at all,” he said. …
http://www.mgwashington.com/index.php/…cantors-wife…bailout/2448/ – Cached
GOP House Whip’s Wife ‘Didn’t Know’ Her Banking Firm Benefited …Feb 17, 2009 … Banks do not need a bailout as much as a clean out. … Duh, I didn’t know that our board should be involved in a 250 million dollar transaction. …. The bank, Cantor and his wife are going to be sorry …
crooksandliars.com › Blogs › Susie Madrak’s blog – Cached – Similar
Keith Olbermann busts Eric Cantor over his many problems …Feb 18, 2009 … He also said Cantor had never intended the bailout bill to be used to …. to me to question a wife(bank executive) of a congressman involved in the … And his wife who just happened to withdraw $15M right before his …
crooksandliars.com › Blogs › John Amato’s blog – Cached -
BREAK UP THE HEALTH BILL!!!
Put all of the reforms minus the public option and the Medicare buy-in into one bill and then pass it with 60 votes. Then do another health bill with the PUBLIC OPTION and pass it using reconciliation!!!
That’s our Treasury Secretary’s position!
http://www.youtube.com/watch?v=mn2qv-2M8vU
Can you believe that Summers is Paul Samuelson’s nephew?
Did he bother to read any of his uncle’s works?
Summers, Geitner and Bernecke need to go, now.
Between the stimulus package that had too many tax cuts, not nearly enough infrastructure spending, free passes for torturing war criminals and the health care give away to the insurance companies, I will never vote for a Democrat for national office again.