William Black: "If The Obama Administration Continues This Way, It's Going To Have A Record Disaster At The Mid-term Elections"

Tyler Durden's picture

In this must watch Real News Network interview with William Black, the outspoken critic of all that is wrong and broken with the current system spares no words to once again denounce the (purposeful) ineffectiveness of the administration, and rightfully predicts that with Obama's current track record of inactivity in dealing with the corruption and criminality at the nexus of finance and politics, there will be a massive loss for Democrats at the upcoming mid-term elections. In Black's words: "We knew as soon as we saw Summers and Geithner that the finance side of the administration would be a disaster, but we hoped that political side would be preeminent and say a) this is substantively wrong to continue get in bed with finance and b) it's terrible politics. The democratic party will be crushed if it does this. The political side has failed to get involved. This is one of those rare things where doing the right thing is really good politics, so support candidates that will actually do the right thing. And if the Obama administration continues this way, it's going to have a record disaster at the mid-term elections. There's going to be a massive loss of democratic seats."

Everyone should ask themselves the same rhetorical question that forms the basis of Black's conclusion: "What would it take if the greatest economic catastrophe in 80 years, if an epidemic of fraud by your top elites, if the corruption of your most senior professionals, in accounting, law, appraisal, rating agencies, isn't enough to make you fundamentally reconsider and say we are headed along a disastrous path. What will it take, because the next big one will be even worse."

Full five part interview below:

Part 1:


Part 2:


Part 3:


Part 4:


Part 5:


h/t Ian

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marginnayan's picture

America's New Slogan - To Rob America, Own a Bank. Stupid.



caconhma's picture

"And if the Obama administration continues this way, it's going to have a record disaster at the mid-term elections."

I don't think Obama gives a shit about democrats. He cares ONLY about himself. He always will get 95% of black votes and most of Latinos whom he will promise an amnesty.

As for Republicans, I think to many Americans have lost interest in Bush and his congressional clowns. After all, both major political parties are corrupt and intellectually bankrupt. I would expect very few voters will show up on the election day.

Thorny Xi's picture

"...the US is not much of a representative democracy any more. It's more of a hokey-pokey-ocracy: in one election cycle, you throw your right bums out and vote your left bums in, and in the next election cycle, or the one after, you do the exact opposite. (And you shake it all around in the meantime.) The bums — the Republicans and the Democrats, that is — are perpetually locked in a loving embrace, for they truly complete each other." Dmitry Orlov

cirrus's picture

Actually, the US has and never was intended to be a democracy...regardless of the adjective in front of the word democracy.  The US was formed as a "Republic", pure and simple and there is quite a difference.  You can call the US a "democratic republic"...that would be accurate.

Spartacus's picture

I have started doubting the true nature of this site. After years of reporting that the Banks have looted the public money in America, this site has failed to convince anyone about it. There has not been a single instance of popular protest  that would convince anyone that American blacks and whites are unhappy with "Obama The Great" . If "Baldy Blankfein is the true Bastard" as he has been projected ,he would have fled the country long time ago to escape from the marauding Americans(guns in their hands).  It seems that Banks have done nothing wrong .Thank You.

Ned Zeppelin's picture

I can only guess that you are a semi-professional comedian in your native country.

Ripped Chunk's picture

"After years of reporting that the Banks have looted the public money in America, this site has failed to convince anyone about it"

Spartacus doesn't get out much.

ToNYC's picture

Until the perps walk en masse; we are headed to the crapper once more..it's all blessings without vigorous prosecution and cauterization of the gangrenous wound to our system that can't be ignored for the persisent sepsis it constantly produces.

tip e. canoe's picture

i don't know To, used to think that way but not any more.  have a feeling that the long arm of the "Law" will be used to selectively round up some goats to satisfy the proles into believing there is a sense of Justice.  of course, it will all be a ruse.  the only hope with that angle is that the goats will start singin dixie in a public forum and spill the beans.  this whole drama has been played before and it only turns the cycle of charades one more revolution.

it might be time to finally get off the merry-go-round and remix the age-old script (jumbled metaphors intentional). 

ToNYC's picture

So the only hope is not dope. Be the hero you wish to rescue you.

non-anon's picture

William Black wrote a good book on the SnL Crisis and those that are Conman and Frauds runnings these institutions. Obama and the Dems are doing everything they can to push their failed policies that the majority of Americans do not want. I believe they know they are going to lose in Nov. and are doing everything to pass their socialistic agenda on American's before then.

Bear's picture

Are they really that smart? I think arrogance has convinced them that they can do anything they want and then lie (as Obama did) to get elected. Don't be surprised if something really, really bad happens to America before November which will force Americans together to rally around their President and Leadership.

Dirtt's picture

Not this time Bear. Something will happen indeed. Wouldn't be surprised if that "civilian force" is turned to face down Middle America.

Make no mistake there will be bloodshed. Not inciting. Not condoning. Just observing.

tip e. canoe's picture

not if Middle America does nothing to justify the use of force.  this does not mean remaining passive.

there is something quite powerful in simply exclaiming like Bartleby "I prefer not to", especially when it's done en masse.

Spartacus's picture

Wrong again! Timy The Dog is still the treasury head after  openly looting the american public( As has been reported on this site and in some mainstream reporting journals. He paid billions to his cronies in Banks against products which were structured to loot AIG and the american public,this is what I have understood after reading hundreds of pages of trash reportings). Americans are not that dumb to let a man run their treasury who has looted them. Stop this misinformation,please. Long live Obama and his team.Thank You.

bruiserND's picture

It will be a police state and there will be no elections in November


Please listen to Judge Andrew Napolitano as to why the immediate exercise of state sovereignty at this time is critical to the survival of the Republic.
In my view Judge Napolitano is the most important political commentator  / leader of our lifetimes.
2} http://www.youtube.com/watch?v=OFijqnkJXz0&feature=related  
3} http://www.youtube.com/watch?v=FdXmprQ67Dk&feature=related  
4} http://www.youtube.com/watch?v=VZYemZp6oWI&feature=related  
5} http://www.youtube.com/watch?v=-8XczcxmjXk&feature=related  

nathan1234's picture

Wanted to say the same thing but you beat me to it.

At any given minute the Patriot Act will be used in conjunction with other emergency powers to ensure that Americans will not have the chance to fight back.

The impending financial collapse or the middle east meltdown- which will be earlier is the question!



Ripped Chunk's picture

Alex thinks they will suspend elections eh?

Well now that would create a stir now wouldn't it.

They don't have the balls or the forces needed.


Seer's picture

Socialistic agenda?  Clearly you're ill-informed.

Look at Wall Street and then at Main Street and tell me how this socialist agenda is operating.

There is ZERO - NADA - NO - thread of socialism going on here.  Socialism is centered around people (specifically the workers).

It's the mis-use of labels that keeps the masses confused and unable to figure out which way to turn.

Disclaimer: I do not belong to ANY political party.  I do not defend ANY political party.  My only interest is in defending the truth, and therefore justice.

For all those who still don't get it, this is all revolving doors crap that's designed to keep people in power so that they can serve the interests of the corporate sector (listen to what Black had to say).

Winston Smith 2009's picture

The only socialist agenda I consistently see no matter what corporate owned party is in power is the rewarding of corporate failure with taxpayer money.

Here's the situation:

Where the People Don't Rule


Intro: "Common delusions notwithstanding, the United States, I submit, is not a democracy – by which is meant a system in which the will of the people prevails. Rather it is a curious mechanism artfully designed to circumvent the will of the people while appearing to be democratic. Several mechanisms accomplish this."

ToNYC's picture

So wake up and start pointing fingers. It's just so fcuking hard to run for office with all those fingertips pointing at you from all sides.

Johnny Dangereaux's picture

From His lips to God's ears.

That still in the part 1 box makes me sick. I guess every generation needs it's Robber Barrons. Dimon looks like he just laid an egg.....on the face of the American public!



Lord Blankcheck's picture

an egg sized diamond!


Looks like they are praying to the Lord as he sips his Holy water.

Stevm30's picture

Not much new here... He's diagnosed some of the secondary causes of the crisis, and suggests some band aid solutions, generally speaking more interference in the market, that will probably lead to more problems, not a solution.

He fails to identify the ROOT CAUSE which is the existence of the FED and government control of our money, and he fails to argue for a real fix, which is dissolution of the FED.

Overall, this guy's reasoning is not very impressive.

Rick64's picture

He outlined everything to start fixing the system thats already in place. He knows the real problems, but short of a revolution you are not going to be able to just go in abolish the FED and tear down the system already in place. As he said if you wait on new laws to fix the system, it will never get done. Get rid of the key people that are appointed(not elected) and appoint some real americans that care about the country.

A Nanny Moose's picture

unfortunately the destroyers have come calling. Nothing short of restoring honest money will provide the long term fix. Anything else is just kicking the can.

Rick64's picture

In theory it could be fixed, but they will not give anyone with integrity any power so short of a massive uprising or revolution it probably won't happen.

PD Quig's picture

"the existence of the Fed and government control of our money"?

WTF? Where have you been? It is the Fed that controls the money and the government goes along for the ride because without money printing they wouldn't be able to deficit spend--buying votes, collecting campaign contributions, rise & repeat.

By the Constitution, the Congress is SUPPOSED to control the money, but in 1913 a cabal pulled off the scam of the century and created the Fed. Maybe Congress would fuck it up worse than the Fed, but at least we can throw those assholes out. The Fed we can't even audit.

Seer's picture

OK, let's hear from you how dissolving the FED would fix things.

I don't like the FED, but I tend to observe the words of Eric Sevareid:

The chief cause of problems is solutions.

Further, I don't think that you're understanding what "regulations" really means.  Our laws are ALL regulations.  Would you be willing to remove the regulations that state that it's illegal to rape children?  If you're sane you'd say "of course not!"  Well, regulations are meant to punish those who would lie, cheat, steal, murder etc etc.  What went on was that our enforcement was effectively non-existent, in many cases bought off- hey, go ahead and rape that child!

If on the other hand you really to wish to get rid of ALL regulations (fraud would then be essentially legal- no class action lawsuits [pushed by the same "no regulation" crowd]), then sure, why not.  It would be fine with be because it would just mean a quicker end to big corporations (trust would be gone, and further, since laws would be pretty much meaningless people could ransack the corporations).

But I agree, the entire system is rotten.  It's based on a grow-or-die mentality, something that cannot go on forever on a finite planet- my long position is a sure bet.

ToNYC's picture

The chief cause of problems is solutions.

Bleeding idiocy; Eric Sevareid deserves more than one out-of-context remark.

Listen to Mr. Black, he was there and successful with a totally off-the-hook skill set that is being studiously ignored while the rape and pillage persists for just a bit more. No one is more inimical to the interests of the public than the FED. Whose asses get covered?..not the masses.

Reflexivity's picture

"What would it take if the greatest economic catastrophe in 80 years, if an epidemic of fraud by your top elites, if the corruption of your most senior professionals, in accounting, law, appraisal, rating agencies, isn't enough to make you fundamentally reconsider and say we are headed along a disastrous path. What will it take, because the next big one will be even worse."

How many readers here are themselves an accountant, lawyer, banker, consultant???


SayTabserb's picture

Be careful about identifying yourself as a "learned" person. Remember Pol Pot's killing fields.  :-), sort of.

Reflexivity's picture

Yes, be careful about admitting your profession: you may be subjecting yourself to all manner of ill will.

SayTab, I was saying something more along the lines of: "We have met the enemy, and he is us." (Pogo).

SayTabserb's picture

Right you are. A little slow on the uptake this rainy day in NorCal.

ToNYC's picture

You should meet the comrade, he is the hero amongst us.

Jake3463's picture

Internal Auditor, that profession is in the crapper.

They want everyone to be consultants with management instead of auditors right now, it is a little wierd, well they've wanted it for the past 7 years but it was being really pushed when I got laid off.

The external auditors I worked with from Big 4 over my career were all pretty dumb.  They dressed nice and had good manners but they weren't that bright.

Every conference I went to from 2006-mid 2008 the consulting firms were selling the banks risk management process as the most sophisticated and greatest way to manage risk ever.  They stopped selling it in the beginning of 2009.


Cursive's picture

Internal auditor here as well.  Everything you say is true.  The IIA is a sham organization.  I became a whistleblower at a small NYSE-traded utility.  If you don't have any alternatives to your current income, I don't suggest anyone try blowing the whistle.  It's career death and nobody's interested anyway.

Hulk's picture

 It's career death and nobody's interested anyway.

Serial whistleblower here, and you are exactly right...

Look how well WB'ing worked for Black, he has been bannished to Siberia too


Shameful's picture

The masses appreciate it, at least hose that are awake.  The system is corrupt, but they are smart enough to demonize whistle blowers.  After all if your co-workers watch you get crucified for doing the right thing odds are they won't.  Take the fraud out of America and all that's left is porn and donuts.  I laugh when I hear about how corrupt other nations are when compared to us.  We put a better spin on it but I have heard nothing but tales of waste and extreme (sometimes criminal) negligence and theft from everyone I have ever known who worked for the government, and from my own experience working in a quasi government agency.  Friends who watched military equipment get stolen en mass, research dollars stolen and back doored, bribes openly taken, accounting tricks, and embezzlement.  In all the cases I can remember not 1 person was sent to prison.  I personally know one case where it was shown that more than 5 million was embezzled but the person was allowed to walk with no jail time, didn't even take them to court after doing the audit.  That person was asked to resign though... 

We may not be as bad as the 3rd world, but we are trying to play catch up.  Hell it's a wonder more people aren't corrupt with the total lack of enforcement or punishment for the looking.  One of my fav examples was a friend of mine was doing engineering work on a military research facility and heard that 1 billion dollars could not be accounted for over a 5 year period, signs pointed the the base commander, who then promptly retired and the matter was dropped.

jeff montanye's picture

"take the fraud out of america and all that's left are porn and donuts."  classic.

Seer's picture

We may not be as bad as the 3rd world, but we are trying to play catch up.

Oh no, we're MUCH worse.  You point out illegal activities.  The "legal" ones dwarf everything else.

It's just that in the US the appearance, the polish, is so well done that it all looks legit (it's a sad thing to point out people in the third world countries who are stuck with third-rate hucksters [money always attracts the best, and the US has the most!]).

tip e. canoe's picture

"The system is corrupt, but they are smart enough to demonize whistle blowers."

exactamundo...fear & control baby.   gotta make sure no more than 5% of the pyramid doesn't color outside the lines.

Hulk's picture

Its one thing to read about the waste, I remember doing that, pre fed employment,but to actually experience it is quite another. After 20 years in the private sector, joining the feds was absolutely mind blowing.Its a fucking countryclub.

I was mindful of the billions in waste you speak of, and I knew that did not bode well for my case, waste being less than 2 million dollars

But the most disturbing thing to me, is that no matter how high I took this in the system, I could never find anyone who gave a shit, which still gets me pissed off to this day.Everytime I harp on this, I get really pissed off, because no one gives a fuck...

Good response Shameful

Shameful's picture

No one cares.  I'm working for a place that has to do a lot of reporting to the state gov and is itself quasi gov.  Well my main project over the last few months has been to make a new piece of software to replace an old database.  The main problem they have with the old database is it's hard to commit fraud with it (by design I knew the developer).  I was told at a meeting (which I even recorded publicly) that I needed to make the system in a manner where reports and signatures digital signatures would be forged and rewritten by supervises after the investigators singed off on reports.  The state would then be provided with the "new" report but would be signed by the investigator. They can do it now, but it's a headache for them (again by design)

I approached the CIO about this (around the same time I had to attend mandatory fraud prevention training) and all he did was shrug and told me "Their legal probably looked at it, don't worry about it".  The whole point of my work is to provide a better system to falsify reports to the state, and a few other tweaks they want to make reporting easier.  I've been purposely dragging my feet on this project and I've been trying to talk them into buying a piece of software and talking a 3rd party vendor into allowing it to happen.  Lucky for me the CIO has not gotten me the security certs to finish the project and I'm hoping that I can get them to look elsewhere.

mynhair's picture

No handcuffs for BB and Tiny Tim?  Or does "get rid of" have a darker meaning?

Gotta luv these disenchanted OBummer voters.

What were they thinking?

Thanks A-holes!

SofaPapa's picture

Speaking as a "disenchanted OBummer voter", I can tell you exactly what I was thinking.  What were our choices?  Obama or McCain, or earlier on Hillary.  Hmmm...  Great field to choose from, eh?  Obama had no record, and I didn't trust him far.  BUT his lack of record at least held out the lack of a negative history.  It was a crapshoot.  Had his rhetoric actually meant something, we would not be in the situation we are in today.  Because, however, his policy bears ZERO resemblance to his rhetoric, the crapshoot has turned sour.  Back to the beginning, though.  Do you honestly believe that McCain or Hillary would have done anything substantively different?  I seriously doubt that.  We were screwed long before the election ever happened.  This system's rot is very deep indeed, and neither major party will get my vote again ever, if they even REMOTELY resemble the forms they are in now.  As Black points out, one of the pieces that scares me most is the recent ruling by the Supreme Court codifying crony capitalism through personifying corporations.  We are deep deep in the rabbit hole at this point.  I only hope we get out without violent revolution.  Because the ingredients are here, and I'm not naive enough to ignore them.

PD Quig's picture

If you had lifted even a finger to investigate the fucker, you could not have voted for him. Did you read David Freddoso's book? Didn't you wonder about Rezko, Ayers, Wright, Emil Jones? Why is so much of this guy's past a mystery?

Don't fucking tell me that you were fooled or that your other choice was no better. I loathed McCain-Feingold, Shamnesty, The Gang Of 14, etc., but anybody was better the Obambi. This prick is an arrogant, ignorant bastard and is a complete disaster, in both domestic and foreign policy. He is the first president whose parents both hated and fled the United States. Weened on communism with "Frank." An affirmative action loser who was the first president of the Harvard law review to never publish a fucking thing, an 'adjunct lecturer' who was found lazy and lousy by the faculty at University of Chicago.

Thanks to boobs like you, we're all stuck fighting tooth and nail to preserve what we can of this sinking ship. How about an apology?

SofaPapa's picture

No go on the apology.  Yes, I saw the slime on him.  No, I was not fooled into thinking he was the chosen one.  But of the options remaining at the end of the field, he was still the one I chose, because as you yourself point out, nobody was clean.  It was a race between three dirty players.  Did I think Obama was to be our "savior".  Not in a million years.  But did I give him the benefit of the doubt that he might be the best of the three options.  Yes, for all the crap he had, I thought his crap might prove to be the best of what we were going to get.  I repeat what I said above.  Do you really think anything substantive would be playing out differently right now with either of the other players in office?  It wouldn't.  I've already said that I will not be voting for either of the major parties again in the foreseeable future.  That is not an apology.  It is a lesson learned.

Assetman's picture

I had no less than 7 presidential candidates on my ballot in 2008.

Did you only have 3?

No need to answer... I learned my lesson in 2004.

Ned Zeppelin's picture

I'm with you on this one SofaPapa. There was no good choice, and regrettably, Obama was as good as any presented (bad choice among several). The rhetoric against him (not American, secretly a Muslim, etc.) is over the top inflammatory. But to the other guy's point, Obama certainly has dropped the "reform" ball.  But we knew that as soon as we heard Geithner had the nod.  Apology no, eyes opened, yes.  But in sum, every bit as bad as Bush.