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The Great Deregulator.

By Robert Scheer.
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Bill Clinton bears as much responsibility as any politician for the worst economic crisis since the Great Depression, and the wild applause for his disingenuous speech at the Democratic National Convention last week is a sure sign of the poverty of what passes for progressive politics.

Do those convention delegates, and the fawning media that were wowed by the former president's rhetorical seductions, not recall that just before he left office Clinton signed off on the game-changing legislation that ended the sensible rules imposed on Wall Street during the Great Depression? It was Clinton who cooperated with the Republicans in reversing the legacy of FDR's New Deal, opening the floodgates of unfettered avarice that almost drowned the world's economy during the reign of George W. Bush.

How convenient to ignore the Financial Services Modernization Act, which Clinton signed into law to summarily end the Glass-Steagall barrier against the commingling of investment and commercial banking. Do the Democrats not remember that Citigroup, the first too-big-to-fail bank made legal by the law Clinton signed, became the $15 million employer of Robert Rubin, the Clinton treasury secretary who led the fight for the law that legalized the creation of Citigroup? Or that Citigroup -- led by Sanford Weill, to whom Clinton gave one of the souvenir pens he used to approve that onerous legislation -- went on to be a major player in the subprime mortgage swindles and had to be bailed out with more than $50 billion of taxpayer funds?

Those scams were based on bundling suspect mortgages into collateralized debt obligations (CDOs), backed by the phony insurance of credit default swaps (CDSs), all of which were given "legal certainty," to quote Lawrence Summers, who replaced Rubin as Clinton's treasury secretary. It was Summers who encouraged Clinton to sign the Commodity Futures Modernization Act, which declared CDOs and CDSs immune to any existing regulatory law and the purview of any regulatory agency.

Timothy Geithner, a protégé of Rubin and Summers in the Clinton Treasury Department, was appointed, with Rubin's enthusiastic endorsement, to be head of the New York Fed while Bush was president. Geithner happily partnered with the Bush administration in saving AIG and funneling trillions of dollars to the banks that had caused the crisis. When Barack Obama appointed Geithner as treasury secretary, the new president committed to the Bush strategy of saving the bankers rather than those in the middle class who had much of their life savings tied up in the vanished equity in their homes.

The Democrats who boast so much about their inclusion of black and brown people have not seemed to notice that the accumulated wealth of both groups has declined by more than half since the onset of this crisis, wiping out much of the economic gains of the civil rights movement.

Sorry, I couldn't dance at the party as I did with the Democrats the last time around. Of course I prefer Obama over Republican Mitt Romney, who is backed by a rapacious crowd of hucksters who have rallied around the former CEO of Bain Capital as one of their own.

If Wall Street financial moguls are now giving more money to Romney than to Obama, it is a measure of the extent of their greed rather than Obama's effectiveness in curtailing that greed. The banks are bigger and more powerful than ever. The quite-limited victories for consumers cited in convention speeches by Massachusetts Senate candidate Elizabeth Warren and California Attorney General Kamala Harris -- both truly heroic fighters for consumer rights -- were accomplished over the objections of White House insiders.

Obama has followed the examples of Summers and Geithner instead of those of Warren and Harris, and that is what has made the election a tossup as voters continue to suffer in an economy that Democrats as well as Republicans wrecked.

Once again, the thing that saves the Democrats is the capricious evil that now defines the Republican Party. In another time, Romney might have been in the mold of Dwight Eisenhower, a moderate and socially sensitive leader who offered a perhaps more efficient but no less caring alternative to the big-city-based Democrats of his era. As Clinton pointed out in his address, it was Eisenhower who sent federal troops to guarantee the integration of Little Rock High School in Arkansas over the objection of many Southern Democratic politicians and who also built the federal highway system. In short, Ike was a balanced and thoroughly decent GOP leader of the sort that Romney's own father, George, aspired to be.

Not so the son, who attacks the automobile industry bailout that his auto manufacturer father would have embraced, as he would have Obama's moderate health care program, based in every significant detail on Mitt Romney's version in Massachusetts. Romney is an unmitigated liar unrestrained by any moral or logical standard, as demonstrated in his defense of the Bain Capital experience. That part Clinton got right.

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http://www.huffingtonpost.com/robert-scheer/the-great-deregulator_b_1870104.html


Added: Sep-25-2012 Occurred On: Sep-25-2012
By: God_Himself
In:
Politics
Tags: Barack Obama, Bill Clinton, Mitt Romney, Financial Crisis, The Bailouts, Democrats, Politics, Republicans, 2012 Republican Convention, 2012 Democratic National Convention, Clinton Speech, Glass-Steagall Act, Obama Geithner, Obama Wall Street
Location: United States (load item map)
Views: 1360 | Comments: 15 | Votes: 2 | Favorites: 0 | Shared: 0 | Updates: 0 | Times used in channels: 2
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  • Comment of user 'MAKMAK' has been deleted by author (after account deletion)!
  • Bill Clinton can never be trusted as being honest.

    Lewinsky says ... where did you leave that Cigar?

    Posted Sep-25-2012 By 

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    • @TEX
      1999 called they want their joke back

      Posted Sep-25-2012 By 

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    • @briin79
      1999 ,, joke back,,,Yaaah yah yah...
      but Clinton is Speaking to the Nation NOW!!!

      R Ya gonna Believe and or trust a Clinton?
      Answer up..!
      I, LL and the rest of the world, are waiting for you to post your answer of: yes or no.

      no flag.... shame of your home land,,, gawd that must really suk.. Mexico? France? anywhere in the Middle east?
      Never mind... (Hey LL.. he one of them people from Nodd)

      Posted Sep-26-2012 By 

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  • A Clinton "dig" and a Romney "bashfest" all in the same article.

    Posted Sep-25-2012 By 

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  • Slime oozes from this guy, it always has.

    Posted Sep-25-2012 By 

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  • Deregulation? Spoken like a true fascist!
    Democrats FORCING banks to lend to people who couldn't pay them back IS what caused the subprime mortgage meltdown

    Posted Sep-25-2012 By 

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  • Someone just watched the movie
    "inside job"

    Posted Sep-25-2012 By 

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  • Somebody gets it. Now how do you tell the Democrat voters what it should mean?

    Posted Sep-25-2012 By 

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  • I have to agree with that. Clinton's big mistake was retaining greenspan. But there's plenty of blame to go around. The legislators also failed. I recall the 90's when my fax machine would be full of faxes from mortgage companies. Everyone knew it was a scam back then, yet it was allowed to continue and work it's way up the food chain.

    Posted Sep-26-2012 By 

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  • This article is total and utter bullshit. It goes against all logic. King George Fucked us all.

    Posted Sep-25-2012 By 

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    • @LifeinPictures

      Clinton did end the Glass-Steagall law in his last few weeks as president and that opened the doors for all the banking shenanigans that happened under Bush.
      Bush did contribute with the tax cuts and the two wars on the credit card but Clinton has to share the blame...


      .

      Posted Sep-25-2012 By 

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  • He obliterated the debt of the gouvernment, Bush senior helped creating. After Clinton, Bush Junior started several expensive wars (ofcourse his friends in the weapons industry would benefit, on behalf of the taxpayers who were not able to avoid paying them). Obama inheirited this shit.

    Will Romney clean up this mess ? Guess..

    Posted Sep-25-2012 By 

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  • dregulation did not cause the meltdown, people defaulting on their mortgages did. You can blame the banks for their lax lending policy, but the standard was set by Freddie and Fannie.

    Posted Sep-25-2012 By 

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