Obama had one key job to do as President: Reform Wall Street. He punted. Instead of breaking up the mega Wall Street banks by restoring the Glass-Steagall Act, Obama signed into law the toothless Dodd-Frank financial 'reform' legislation that has allowed all of the worst abuses of Wall Street to continue. At the time the legislation was signed into law in 2010, Democrats controlled the House, the Senate and the Oval Office.
The brutal truth is that the Obamas have been in tacky, let-them-eat-cake mode for a long time now."
Pam Martens, Barack Obama's Fall From Grace
"The Banks must be restrained, and the financial system reformed, with balance restored to the economy, before there can be any sustainable recovery."
Jesse, May 2009
It was painfully evident even in the first 100 days that Obama's candidacy was a marketing meme backed by billionaires and the Wall Street money crowd. His economic appointments made that very clear, and the legislation that the corporate Democrats enacted to 'reform' the financial system was a means of deflecting the public outcry for genuine reform of a corrupt financial system..
The GOP is worse, and even more servile to corporate and moneyed interests given their turn. But that is just another chapter in the story of how we got to where we are now.
Stocks managed to 'recover' from a fairly significant selloff and closed green for the day.
One wonders if the markets will be soothed by barrels of money poured on them into the lead up to Jackson Hole.
Gold and silver both gained, continuing to rebound off the sharp and most likely illegal price manipulation of last week, which we have labeled 'Dr Evil' on the charts.
The dollar was up ten cents.
The VIX is rebounding off its lows. The markets continue to be edgy, and vulnerable to a shock.
I think the likelihood of an 'event' in the markets is rather elevated here because of the reckless lack of management by the Fed and the regulators to rein in their cronies in the Banks and hedge funds.
Have a pleasant evening.
