Volcker Resigns and Goldman Sachs Moves In

[Donnachaidh]

http://www.economicpopulist.org/content/volcker-resigns-and-goldman-sachs-moves

The Obama administration is having a shake up. Former Federal Reseve Chief Paul Volcker is quitting. His final act? Trying to get real financial reform, known as the Volcker Rule and was beaten down at every turn.

Now here comes Goldman Sachs and JPMorgan Chase, straight into the White House.

Gene Sperling, a former Goldman Sachs consultant and more infamous, architect for many of the current consequences our economy is suffering, laid down in the Clinton administration, is slated to replace the equally corporate driven Larry Summers for the top economic adviser spot.

Even Time Magazine calls Sperling Obama's corporate Ambassador and Dean Baker suspects Sperling thinks asset bubbles are cool:

The primary issue is not that Sperling got $900,000 from Goldman Sachs for part-time work, although that does look bad. The primary issue is that Sperling thought, and may still think, that the policies that laid the basis for the economic collapse were just fine.

Sperling saw nothing wrong with the stock market bubble that laid the basis for the 2001 recession. The economy did not begin to create jobs again until two and a half years after the beginning of this recession and even then it was only due to the growth of the housing bubble. Gene Sperling also saw nothing wrong with the growth of that bubble. Gene Sperling also saw nothing wrong with the financial deregulation of the Clinton years which, by the way, helped make Goldman Sachs lots of money. And, he saw nothing wrong with the over-valued dollar which gave the United States an enormous trade deficit. This trade deficit undermined the bargaining power of manufacturing workers and helped to redistribute income upward.

In short, Sperling has a horrible track record of supporting policies that were bad for the country and good for Wall Street.

MORE at the link --

[xchrom]

1. recommend

[shireen]

2. at the next WH press conference

i hope a reporter will ask Pres. Obama why he's hiring these people.

i'm re-registering as an independent. i'm done with the Dem. party.

[progressoid]

3. That's what happened during the Clinton years.

Lot of us went indie when Bill went centrist.

[sarcasmo]

4. Any doubt who really runs this country?

[cutlassmama]

5. not any more.

[Selatius]

6. Quite a few Democrats deluded themselves about Obama being the next liberal hope.

He has and will continue to run as a center-rightist. We didn't have any choices inside the party if we were looking for the next FDR who could win it all.

[Name removed]

7. Deleted message

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[Marr]

8. It really seems like public opinion isn't even a factor anymore, doesn't it?

Obama fills his staff with Wall Street executives and lobbyists, apparently without even a consideration of how the pubic might respond. There's nothing preventing him from appointing people with no direct ties to Wall Street, but governing for Wall Street anyway. He doesn't have to make it official, I mean to say.

He's clearly sending a message to his chosen constituency with these appointments, but it isn't the general populace. He's talking to big business, without any concern for public opinion at all.