Guest Post: Obama's Speech, His Banks, Our Jobs

Tyler Durden's picture

Submitted by Nomi Prins

Obama's Speech, His Banks, Our Jobs

Before tomorrow's 2012 pre-election speech in which President Obama's vocal elocution will be earnest, and results - to put it mildly - tepid, about about how he could create jobs dammit, if only the Republicans would behave, it's interesting to note who's supporting Obama keep his job.

A cursory look at the early stages of his campaign fundraising reveals that the same group of people that benefitted from policies (bi-partisan) that lavished them with cheap money, secret loans, debt guarantees and other forms of perks not available to the average citizen, are backing him for President. Big Time. 

And whereas it's true, Obama's most recent poll numbers look as abysmal as any President (save FDR who he will never, ever be) facing a depressed economy and a near double-digit 'official' unemployment rate (worse if you get beneath its massaged surface), this isn't effecting his most important support, the financial kind. To date, Obama's Presidential bid dosh comes largely from - wait for it - the financial sector.

Yes, the same sector that screwed the country over, and that, despite some unpleasant lawsuits they will likely settle,  remains as powerful, unrepentant, unaccountable, selfish and Main-Street-destabilizing as before Obama took office. No wonder he's been able to keep Treasury Secretary, Tim Geithner by his side - someone has to allay Wall Street concerns that true retribution or meaningful regulatory repercussion will befall them.

So far, Obama has raised $49 million dollars. (More than all the GOP wannabes combined, but that's largely because he's got the head-start and incumbent factor going for him. Plus, he's a hit at fundraising events. Here in Los Angeles, he's tied up traffic several times with those already.) Nearly $35 million has come from 'bundlers', those wealthy, connected, folks that circumvent the caps on their individual donations by pooling their dough together. And just over a third of that, or $11.8 million, comes from the Finance Sector (and yes, one of the sector's 44 bundlers is from Goldman Sachs, his number two contributer in the 2008 election). 

Now, it's not shocking that the banks are banking on Obama. Until they see a surer bet on the Republican side emerge, they're not going to be diffusive with their capital that way. And, beyond some scolding words a couple years ago around election time, followed by a Wall Street speech to which none of the CEOs showed, Obama has done zero to expose, denounce, or change the specific fraudulent actions of his supporters - that would be - political suicide for him. Plus, in the game of politics today, the issue for both parties is slamming each other, Wall Street ire has been replaced with entitlement spending cut banter, whether this results in meaningful policy is not even an afterthought.

Meanwhile, Obama will release details of a new $300 billion jobs stimulus program and urge the GOP to allow him to do his job by creating the nation's jobs. He might even throw in a sentence or two about helping downtrodden borrowers refinance, which will require bank approval and facilitation, which therefore will be as successful as HAMP. And the GOP will balk and say we must cut spending not increase it, refusing to acknowledge the extent of debt we created to float a criminal banking system.

Stalemate to the nth degree. Big yawns all around. 

What Obama will not discuss, is the private lending problem that caps the ability of individuals to stay afloat and small and mid-size businesses to hire. Though they have been treated with kids gloves and deep pockets by Washington, the big banks have not shared the joy they received. Small business loans remain anemically at late 2008 levels inhibiting hiring or expansion - and these are the companies that don't offshore in a heartbeat. Refinancing and mortgage restructuring, despite record low interest rates making the transaction sensible and reducing risk all around, are negligible, thus home movement is impossible and consumer confidence and construction jobs are hit in the process as well. Personal and business bankruptcies continue to mount absent opportunity. This isn't a healthy scenario for job growth.

You can blame it on 'the economy', 'tough times' 'all of us struggling together' or any other generic poli-sound bites. Or you can blame it on the biggest banks sitting on extra capital, which either a) is stored at the Fed in the form of $1.6 trillion worth of Treasury bonds that receive interest in excess of the cost of borrowing the money to purchase them, b)  is used to trade and speculate, or otherwise derive ways to make a 'quick' buck, or c) is set aside to deal with lawsuits they brought upon themselves. Again, none of this is nationally productive or job inducing.

The private banking system is holding people's homes, potential jobs, and general confidence and economic well-being hostage. Thus, however Obama phrases whatever he says tomorrow, and even if his plan for a job stimulus package is verbalized in a more coherent strategy than last time - without a loosening of credit - new or re-negotiated or otherwise more befitting the low rate environment that the Fed offers banks, it's just one tiny piece of a giant puzzle that won't be able to do squat to turn the tide.

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Long-John-Silver's picture

,

Obama's Speech, His Banks, Our Jobs, and our loss (Bitchez)
Dingleberry's picture

Will one of you that fell for this POS's "hope & change" mantra (primarily YOUTH, WOMEN, MINORITIES, and/or HOMOSEXUALS) tell me why the hell you believed it???? Were you really that stupid? Remember the little tears in your eyes when he won??  You are sniffling now because he SCREWED YOU OVER.  Look, If there is no one worth voting for, then fucking don't vote!!!  Do you think the powers that be care who wins?  HELL NO!!  They bought BOTH sides.  However, they would be scared SHITLESS if no one turned out to vote.  Then they would know that FINALLY the fucking dumb-ass masses have awakened from their football, beer, porn and american idol.

oldman's picture

Dingle.

Excuse me, but where have you found anyone awake in the US of A?

I'd like to go there and see this!

As it is, I will journey to Europe for a first-hand view of people who are awake. I'll try tio keep you posted on what I find.

Sorry, though I have looked everywhere here, unless they have something to sell----our people are still asleep    om

Taku's picture

The buzz I'm hearing is the TPTB would like to print until...unemployment hits 7%.

Really. Really?

Perhaps the buzz is from my single malt.

Joseph Jones's picture

I generally agree.  But did he not clear the way for homos to take over the military....I mean for the lawyers reresenting homos to sue our ass up and down the street to insure enough homos become generals and admirals? 

Rick Masters's picture

Stay classy. Its 2011, even if you disagree with gay people being allowed in the military (I don't see how it makes a difference) you and your ilk are destroying this site with your political hated filled nonsense. Yet I appear to be one of the first ones to call you out. Woe. Don't know if i can come here anymore as the information is all slanted now and thus it loses any semblance of great teaching and insight it once had...not sayin its your fault but you are a bigot and a scoundrel. There is a case for barring gays from the military but the status you burden them with is disgusting.

Dugald's picture

 

              Generally speaking......yes

 

HungrySeagull's picture

The electoral college will take care of it.

That and hunting the one'sies and two'sies at every little voting booth.

The closest we came to not voting last time was declaring no party links because the powers that be view the Tea Party as potentally hostile.

thunderchief's picture

Until we get a speech that says:

We are poor nation and need a WPA depression era work program to rebuild the nation, including bringing all troops home, making foriegn treasury debt redeemable in the form of infastructure ownership, and coming clean on all these Wall Street scams....

Well it's just another nice sounding speech, and another few hundred billion down the drain.

JW n FL's picture

Yes, the same sector that screwed the country over, and that, despite some unpleasant lawsuits they will likely settle, remains as powerful, unrepentant, unaccountable, selfish and Main-Street-destabilizing as before Obama took office. No wonder he's been able to keep Treasury Secretary, Tim Geithner by his side - someone has to allay Wall Street concerns that true retribution or meaningful regulatory repercussion will befall them.

I Love You!

I hope you are not a dude.. (not that there is anything wrong with that)

DeadFred's picture

I'm sure you are refering to her excellent analysis and fine writing style and not to the fact she's a bit of a babe.

Bob's picture

Before becoming a journalist, Nomi worked on Wall Street as a managing director at Goldman Sachs, and running the international analytics group at Bear Stearns in  London.

It's her experience!

island's picture

Nomi has been telling it like it is for a long time - with an insider's perspective to boot (because she was a Gold-woman for years).  Her last bailout tally, from Oct 10: $3.514 trillion to Wall St., $2.809 trillion to the GSEs, and the small slice of $1.511 trillion to Main St.  (see http://nomiprins.squarespace.com/storage/bailouttallyoct2010.pdf

Kudos to Nomi!

rocker's picture

As managing director of Godman Shafts I thinks we have a little problem here. Don't know her well. But, she has now been cultured and groomed by Wall Street's biggest crooks. This steals from her credibility.

Nomi says, "The private banking system is holding people's homes, potential jobs, and general confidence and economic well-being hostage. Thus, however Obama phrases whatever he says tomorrow, and even if his plan for a job stimulus package is verbalized in a more coherent strategy than last time - without a loosening of credit - new or re-negotiated or otherwise more befitting the low rate environment that the Fed offers banks, it's just one tiny piece of a giant puzzle that won't be able to do squat to turn the tide."

In this economy their is very little, or one could say "NO DEMAND" for loan money or credit. At least from those who would create jobs with it.

WHY?  Because their is "NO DEMAND" for anything beyond what is available now.  Why? Because most consumers either owe too much to the TBTF Banks or they do not have or make enought money to afford more crap they do not need. Hell, they can not afford what they need.  Hmmmm.  

Daily Bail's picture

Drop your love fest for Nomi and understand that she's a Keynesian who advocates more debt to cure what ails us.  She believes big spending is the solution.  Get a hold of yourself, before you so easily start slurping up her advocacy.

She takes the correct position on the bailouts and Bernanke's love of Jamie Dimon, but her solution is bigger government, in the vein of Keynes, Krugman and that idiot Brad Delong.  Witness this line from the piece above:

"save FDR who he (Obama) will never, ever be"

Not sure this one deserved to be published here at ZH, which normally does an excellent job of destroying Keynesians.

Rick Masters's picture

The site once, probably before you found a link on storm front, conveyed all kinds of info and wasn't a strictly austrian blog but there is enough of those so ... hope you don't get your way...cheerio mate

Daily Bail's picture

Before I found a link on Storm Front...?

First, I have never heard of Storm Front.

Second, I have been publishing my own site and reading this one since the month we both launched, January 2009.

Third, Keynesians, econo-trolls as I call them, since they are more politicians than economists, suck ass.

Fourth, ZH and I have been correct about kicking the fucking debt can for a long, long time.  Cheerio mate.

mess nonster's picture

Have YOU stopped reading StormFront yet?

DoChenRollingBearing's picture

The 2012 Presidential Election looks like is going to be very expensive and very dirty.  I have been picking up on this kind of comment recently.

The real answer, is to cut spending by .gov.  Taming the banksters would relatively easy next to that.  But, I hear no one (except Ron Paul) who has said they WILL cut spending, no matter whose ox is gored.

UGrev's picture

That's because they've all got Rick Perry's cock in their mouths.. 

you vote for that mother fucker, you vote for the same shit sandwich that the GOP has been pushing for another 4 years. 

disclosure: I'm a libertarian. 

HungrySeagull's picture

It's the same old dog and pwny show every election.

I got excited due to the hype over Carter making Ford look ancient and out of touch. Then Carter showed his colors later. Iran took one look at Regean 30 minutes after he was sworn in and freed the prisioners. And he broke the USSR.

I miss the days where bombastic USSR strongmen stood up and publically announced that "We" will Bury you!" while deploying assets and missiles in a time of quite high living between heaven and hell delivered by missile, thirty minutes gauranteed.

 

These days the elections I don't even care to follow them. I have already made up my mind who to put in and who to fire when I get to that court house on that day. Until then, they can stay the fuck out of my telephone, mail and television with thier political crap.

 

I know this.

 

If we get 4 more years of Obama, then we are truly fucked. *inserts faux Braveheart irish accented voice.. "Yes! We aree fucked!"

Conrad Murray's picture

Vote with a bullet.

Cursive's picture

@Conrad Murray

If it wasn't so controversial, it would be interesting to see the results of an InTrade contract on this.

topcallingtroll's picture

I take back the one nice thing I ever said about Obama.

ShoeShineBoy's picture

it is getting late and time for those effers lurking in the dark to raid, i guess. i put my stop-buys at 1750s hoping they get filled overnite

NumNutt's picture

Of course the banks love Obama, He steals from the poor to give to the rich, I can only imagine the type of conversations they have when they are sitting around drinking and smoking - Obama"So I tell the dumb bastards 'I am going to give 6 billion to the banks to loan to you', and they are to stupid to realize it is their own money that I taxed from them! They will be paying us twice! HHAHAHAHHA" Bernanke replies " I will print more and they will pay it back for the rest of their lives! HHAHAHHHHA! Oh and then we can tax them on the property they purchase with the loan money, damn this is to good to be true!!! HHAHAHHAHHHA!"

rocker's picture

+1 NumNutt.  It is especially funny when Hank Paulson, (under Bush), gave 700 Billion to his favorite bankers to save the economy. Gosh, that worked so well. 

sun tzu's picture

0bama = Bush on steroids

hope n change for the suckers

Royal Fleming's picture

I deleted what I was gonna say....Its just not worth it...

zorba THE GREEK's picture

If the Republicans had half a brain, they would pass whatever Obama proposes.

That way, when it fails to create any meaningful jobs, Obama will have no one to blame

but himself. Obama's political strategy so far seems to be blaming everything and everyone

for his failures. I guess he doesn't believe in policy of 'the buck stops here'

DeadFred's picture

And it will only cost all of us $300,000,000,000.00

connda's picture

Obama's political strategy so far seems to be blaming everything and everyone

This is Barry's real strategy...hate and discontent.  Offer the "little people" something that he can't deliver on and then blame congress.  Partisan politicals - that's all this is.

Anyway, he's putting a bandade on a cut artery.  And he missed his chance by not moving on this in 2009.  Instead of bailing out banks he should have funneled money to small and medium sized businesses and infrastructure projects...that at least would have gotten money to the consumers.  The strongest banks would have filled in the void of the TBTF if they were allow to fail.  The recession would have come and gone, markets would have deleveraged, and we'd be walking out of the woods by now.  Instead, the problem is magnified exponentially and kicked down the road where it will do untold damage to the next generations.

What a f*cking mess!

Bob's picture

This is Barry's real strategy...hate and discontent.  Offer the "little people" something that he can't deliver on and then blame congress.  Partisan politicals - that's all this is.

That's the monumental irony, connda--Barry is the guy whose own mind-boggling incompetence--or simple unwillingness to make this argument when it could have arguably had a real chance--is what delivered the entire process (limited to debt cutting, of course) to a "Super Committee."

Now he stands back and points the finger at them

Unbelievable.

 

Mugatu's picture

Every Presidential speech reminds me of that scene in Idiocracy

 

http://www.youtube.com/watch?v=GFyUvlfZ8j0

 

So true its sad!

UGrev's picture

Holy Fucking Shit.. talk about a look behind the curtins on an Obama speech..lol

HungrySeagull's picture

Wizard of Oz. The original 30's version made in Liberal Kansas.

I screamed with terror dreams of that fearful green head with storm and flame/fires roaring amid rolling smoke... I was not very big when they took me to watch it.

 

Today the family would be arrested and charged with some kind of crime.

 

StychoKiller's picture

"POMO-ADE, the Growth Thirst Mutilator - Rich in "electronlytes".  Pour it on everything and watch it grow."

With apologies to "Idiocracy!" :>D

Deadpool's picture

Bread and circus. Smoke screen while the country is looted. Same as it ever was and will be until there is nothing left...

RingToneDeaf's picture

Used to think the revolution would start with his second term.

Not anymore.

I think it is going to kick off next year, just like the Mayan calendar says as we transition into another world order. Pay attention, do you hear the shooting yet?

stiler's picture

somewhere a lake of fire has been prepared.

UTICA CLUB XX PURE's picture

It's all by design people: He's handing the torch back to the Clinton Dynasty before the last great American silver & gold rush.  

lynnybee's picture

Our Jobs   ........ our jobs ?    HAAAAAHAAHHHAAA  !    yea, they were our jobs, weren't they.    what a laugh.    THE COUNTRY HAS BEEN LOOTED, PEOPLE VIA WALL ST. FRAUD .    OBAMA IS A BANKER & JAMIE DIMON IS HIS BOSS.    I'm not stupid .   

UGrev's picture

Rand Paul: Vote of no Confidence in Turbo Timmy

http://dailycaller.com/2011/08/10/rand-paul-pushing-for-vote-of-no-confidence-in-tim-geithner/

Not a fucking PEEP from the establishment GOP. 

Homey Da Clown's picture

watching "tingles" Mathews and the rest of the LSDMBC crowd analyze a GOP debate is like watching mpnkeys try and fuck a football. It's funny as hell to watch, but they have no idea what the hell they are doing. Twleve radical liberal/socialists all trying their best to hide their utter disdain is pure comedy gold, while doing their best to point out how their savior Obama deserves another 4 years.

Oh and it's Bush's fault by the way.

Uncle Keith's picture

Actually, it is Bush's fault. Most of the credit still goes to the uber-anti-intellectual-bigot, industry deregulating, Reagan.

 

You know, Clinton fixed everything. Cheney claimed, quite famously, Deficits Don't Matter. Pimp Mama Rove was running all policy towards electioneering. So, pump up the rich; pack the Supreme Court with another Chief Justice who is a self hating homo and, run the fucking table. Oh, if you don't see what's wrong with that, that's politics and not governing.

 

We were at a cross roads in 2000 - Gore; Bradley; McCain; Fetal Alchohol Syndrome Kid. America chose "self-indentity" and they picked Damaged Goods - Cuz He's Stupit Just Like Me!