Former Goldman Insider's Take On Obama's Speech And The Massive Pink Elephant In The Room

Tyler Durden's picture

From Nomi Prins

Obama's Speech and America, Inc.

Watching Obama deliver his State of the
Union Speech last night, reminded me of all the rah-rah quarterly
meetings that we had to attend as Managing Directors at Goldman, where
senior management would remind us all of how great we were, and if there
were any areas of competitive weakness relative to our adversaries at
other banks, all we had to do was step up our game, innovate and
globalize (or something like that.)

Obama wasn't delivering a summary of
what has, or is, going on for most Americans last night, no such
negative status report. And, if you didn't expect him to, he gave good
speech - full of reminders of how it is America's destiny and the
American dream to be great and powerful, "robust democracy" that we are.

There was a massive pink elephant in the
room called reality though. So, when he waxed proud when he said, "We
are poised for progress. Two years after the worst recession most of us
have ever known, the stock market has come roaring back. Corporate
profits are up. The economy is growing." I had a different reaction.

My reaction was wtf? Two years after the
worst recession? After? Really? What about the 26 million people
unemployed or underemployed in the country? What about the 4.4 people
applying for every job, compared to the 2.9 people per job after the
2000s recession? What about the 4.4 million jobs that should have been
added, just accounting for a population coming of job age alone, forget
any kind of growth, compared to the fact that instead, the job pool
declined by a quarter of a million people in the past two years, because
the time required to get a job is at record highs? What about the
nearly 8 million FAMILIES that have been foreclosed upon because of the
reckless investment bank race to create $14 trillion dollars worth of
toxic assets in the five years leading up to the financial crisis and
leave them to shatter lives and the non-stock market evaluated economy?
What about the fact that the government fiscally stimulated the banking
system by a multiple of 20 times more than it stimulated its citizens,
with nary a fight from the politicians our democracy is so lucky to have
as representation?  What about all that warm, cuddly multi-trillion
dollar support from the Fed and the Treasury Department on our country's
way to Sputnikian economic greatness?

"The rules have changed," said Obama.

Yes, they certainly have. Businesses can
offshore jobs because it is in their best profit and shareholder and
stock value interest to do so, with no federal incentive to alter this
strategy - that's why corporate profits and CEO salaries are up, whereas
the average median employee salary on a comparative basis is stuck
somewhere in the 1970s. That's why staring at the abyss of potential
bankruptcy in the fall of 2008, Goldman Sachs and Morgan Stanley got the
Fed's blessing to become federally subsidized bank holding companies.
And we, taxpayers, are still on the hook for the Fed's $29 billion of
backing of Bear Stearn's assets taken over by JPM Chase in a government
sponsored merger in the Spring of 2008 and coming with a bunch of
still-being-wrangled lawsuits, not to mention gleeful federally backing
of the further consolidation of the banking system to fewer, more
powerful, more obtuse, more risky players.

All of which, though technically not a
result of changing rules, but rules staying the same and working for the
reckless, were still rubber stamped by the Obama administration (yes,
and Bush too, and Clinton's deregulatory team, etc.) and its financial
king's, Tim Geithner, until recently Larry Summers, and incoming JPM
Chase's Bill Daly and GE's Jeffrey Immelt as job czar. (GE and JPM
Chase, having been happy bailout recipients, of course.) Small
businesses can't hire as many people, because they can't afford their
financing, even if banks will give them usefully sized loans, they don't
get the 0.25% interest money the banks get from the Fed when they need
it. Individuals got hosed, meanwhile, by shady home loans and shadier
modifications and higher fees on all sorts of credit, from cards to
student loans (a record $884 billion of which are outstanding to
students whose tuitions rise as their job and loan-payback prospects

We're not talking just about steel mill
job eliminations over the years, we're talking about the solidification
of the administration's decision to ignore the mistakes and devastating
consequences of Big Finance and Obama suggesting last night, that people
consider becoming teachers, with a smile. No disrespect to teachers, of
course, they work much harder and make do with much less than traders,
but you don't see Vikram Pandit, Citigroup CEO rushing out the door to
become one, no you see him getting approved for a RAISE, of the sort a
teacher can only dream about, from a base salary of $1 million to $1.75
million this year, after Citigroup's survival was ensured only because
of massive government stimulus. Why? Because he is now valued at a 75%
pay increase, that Washington, and Obama would like to believe is due to
his hard work, and not to a government handout. America at its best.

There were some useful elements to his
otherwise CEO like speech (you department heads sitting out there - you
work together so America, Inc. can be the best it can be.) They included
adopting a fair immigration policy that doesn't chuck people out of the
country because the path to being here is so laden with decade long
bureaucracy and cost, keeping some elements of an otherwise
insurance-company gift of a health care reform bill that the GOP House
just repealed and that doesn't reform the cost of health care - such as
covering pre-existing conditions and people up to the age 26 under their
parents' plan (if their parents have a plan, that is) even though Obama
backed off from even trying to convince the room to consider full
coverage for all without egregious premiums, and wanting to increase the
spread of clean energy initiatives (that he said will create 'countless
jobs' as opposed to the countable 5 million he said it would create
during is campaign.)

But, in the end, Obama's practiced
eloquence in delivery, peppered with a few American success stories -
who can deny the hero behind the Chilean mine worker rescue his due? -
 and the now-debated investment over spending word choice, belied a
strong dose of something akin to condescension. If you don't have a job,
it's because of the Internet, not the banks hoarding $1 trillion that
we gave them at the Fed. If we're falling behind China in education,
it's because bad teachers should be removed, good ones rewarded and
parents (who apparently aren't doing as good as job as they could of
this) are not focusing on the education process more at home. If
America, has the 'most prosperous economy in the world' for its
corporations and financial insitutions, its because we all share a
common, attainable dream.

So, just go out and innovate and compete and get it. We'll be here watching the banks' backs.

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Cleanclog's picture

And "win" the future!  Since when is the future something we "win"?  All a game?  Our futures?  Ridiculous.

downwiththebanks's picture

Thought the same thing.  What stupid phrasemaking.

Then again, all that really matters in the world is fucking the other guy over in the market, so perhaps is beautifully rational.

medicalstudent's picture

'the future is ours to win' -bho


usually when you are ahead the future is yours to 'lose'


guess we are losing.

G-R-U-N-T's picture

Obama is a walking contradiction!!!

Problem Is's picture

Stuff it Hopey McFuckin' One Term McChange
Obummer is a condescending, moronic dupe, and an idiot sloganeer extraordinaire...

(UWOT) Usless With Out Teleprompter, bitchez...

jeff montanye's picture

speaking of one term, imo that might just get him a jot closer to sympathy for the unemployed.  he's got little enough now.

Oh regional Indian's picture

Grunt, actually what we saw in the state of the Break-up speech was the perfect practise of double-speak.

So clear now why Omama was the chosen spokesperson for this phase of the takedown.

AS Teleprompter in chief with a perfect voice/demeanor/gravitas, on command, he can pied piper many "followers" into anything, anyplace. 

This is nearing the pinnacle of 1984 for real and the gates look to me like they are going to clang shut anyday now. 

After this, it's going to be One Flew Over the Cuckoo's nest all the way. Imagine beign a sane person in an insane asylum!


Azannoth's picture


Signs affidavit declaring long-form, hospital-generated document absent

bobert's picture

The gentleman signing the affidavit may want to disappear for awhile. Hang low so to speak. Go incognito......

It's better than being dead.

blindfaith's picture can write and or find anything you want to back up this claim or defeat it.  Stop wasting you time on this tired notion.  IF IT WERE TRUE...what the heck is anyone going to do about it, call INS?

The 'fact' is, he is the best neo republican the democrats ever put in office.  As for the old republicans and democrats they are on their way to join Volcker to feed pigeons in the park.  They have given up, don't care, or can get any attention.

A national crises, a security crises in employment, foreclosures, infrastructure, intelligent health care, law and order, standard of living, American Morales, veterans treated like trash, any of these that should have gotten the SAME national emergency attention that Iraq and Afghanistan receives.  Just look at the trillions spent/lives lost on these farces, and he didn't even mention them in his worthless  and meaningless "State of the Union".

WHO gives a fat f*#& about the American people...NO ONE!  Not even Americans, it seems.

FEDbuster's picture

If you don't have an official, original birth certificate proving you are a natural born citizen, you will not be able to be on the ballot for President of the US here in AZ in 2012.  The law is making it's way through AZ senate right now, should be law very soon.  Other states to follow soon.

I don't think it will matter, Obama is a "one and done" like Carter.

Bob Dobbs's picture

President Obama reminds me of President Hoover.

NOTW777's picture

just watch this obamacare testimony from today which will never see MSM

FoodTiger's picture

to "win" the future, we need...




medicalstudent's picture

gotta love the 'equality' and 'fairness' bullshite.


it would be most fair if we were all dead, wouldn't it?


uh-oh... when logic hits walls... we are in trouble.



iDealMeat's picture

+ 11:59  LOL'd on that one..

Boxed Merlot's picture

...we need...THE WAR ON TIME!!!

Evidently his speechwriters didn't get the memo:

"On a long enough time line the survival rate for everyone drops to zero."

But that won't stop DC from chryogenically freezing previously vibrant and necessary components of our society into a state of utter uselessness. I say pull the plug on the lifeless cadavers and put them in the ground where they belong.

Azannoth's picture

You also need to be fighiting the Right war in the 1st place, and no Obama's wars are not your wars

Drachma's picture

According to DHS, there could be a timeist sleeper-cell in any neighborhood.

zaknick's picture

Welcome to the bankster Matrix.

Mercury's picture


Apparently the future has been something you "win" at least since 2005 when Newt Ginrich wrote a book on the subject with that exact title:

Who's vetting the president's bullshit these days?

Nice going Barry.

Raymond K Hassel's picture

It was the State of the Crack Up Boom Address - and in that light, it was well fucking done. 

MSimon's picture





Get it?

jm's picture

I appreciate this piece, but I have to say Faber was even more eloquent when he called Obama a whore.

unununium's picture

Faber needs to photoshop his jawline like Nomi did.

jm's picture

Obama needs to photoshop his ass out of the White House.

Hephasteus's picture

The white house needs to photoshop the federal reserve out of my life.

UGrev's picture

Why stop there.. lets keep it going witih the photoshop removal of the BATF, DHLS, and CIA. Photoshop removal of the Internal Revenue Act as well, and photoshop in the un-equivocal and mandatory compliance to the constitution by the many states that, amongst the absolute compliance of the many states to the rights of the people, that the 2nd amendment be understood that all small arms in equivalence to the military, are allowable, and able to be purchased by citizens of the many states with no infringement including the ability to travel to, from and through any state in the union without repercussions. What one group of people thinks is not needed is not covered under the 2nd. It doesn't care what you think. That the 1st amendment includes all speech; even hate speech is covered under this. Just because we don't like it, doesn't mean it can't be said. 

snowball777's picture

And that my god-given right to drive a rolling meth lab through each and every state collecting the young daughters of America for my stable of bitches shall not be infringed!


Dr. Porkchop's picture

The fed is more interested in

crtl-c dollar,














Sudden Debt's picture













It just goes a bit faster :)

simonsito's picture

i love that! you should write a letter to the NYFRB. I am sure they will be thankful for the advice, as they donr seem to have much experience in modern technology, considering their POMO desk ;)

as i just learned recently:
"As far as I know, there's no absolute definition for the size of any C/C++ type." So theres still way to go, even with strg+a :)

FoodTiger's picture

I'm still traumatized from the sight of a gorilla with a monster ass in a XXL-size Versace dress

jm's picture



NOTW777's picture

unnecessary and mean. hint some of your thoughts should not be shared

Mad Max's picture

Do you mean Michael, err I mean Michelle?

HoofHearted's picture

Anyone else notice how Soetoro sounds a little like "Sir Mix A Lot"?

InconvenientCounterParty's picture

Gee Captain America, thought you'd be used to it by now from seeing your mom and sister.


Calmyourself's picture

CDS good, everything will work out, got it..

adeptish's picture

"Obama needs to photoshop his ass out of the White House."


The funniest thing I ever read on this site. Props jm.



pslater's picture

Calling Obama a whore gives prostitution a bad name........

jm's picture

When he talks to Jamie Dimon it gives fellatio a bad name.

NOTW777's picture

this should be on the front page of every newspaper and internet blog

"There was a massive pink elephant in the room called reality though. "

NOTW777's picture

OT nice to see POT ripping through 174 - 3 for 1 split and nice div increase.

Kali's picture
Without Oprah and Facebook, USA Worth 40 Dollars



by Andy Borowitz | January 26, 2011 - 9:01am

MINNEAPOLIS (The Borowitz Report) - A new economic study reveals that once Oprah and Facebook are subtracted, the United States of America is worth 40 dollars.

Professor Davis Logsdon, who conducted the study for the University of Minnesota Economics Institute, called the findings surprising: "Quite frankly, the number came in several trillions lower than we had expected."

And he added, in a note of caution, "That forty dollar figure is deceptive because we owe 42 dollars of it to China."

As a sign of Oprah's continuing economic power, yesterday more than 20 million Americans stepped forward to claim that they were her half-sisters.

An angry mob of Oprah's purported half-sisters marched on the talk show host's studio yesterday, demanding new cars and trips to Australia.

In an acknowledgment of the country's ballooning budget deficit, President Obama announced that tonight would be the first ever Tostitos™ State of the Union Address.

Mad Max's picture

Brawndo, it's what plants crave.

Brought to you by Carl's Jr.