Obama Transition: Meet the New Team, Same as the Old Team

Progressives and others who backed Barack Obama for president are pulling their hair out a bit as the Obama presidency begins to take shape as … the Clinton presidency.

Here’s what we know and what we think we know:

• White House CoS – Rahm Emanuel – Clinton Alumni
• Secretary of State – Hillary Clinton – Former First Lady
• Secretary of HHS – Tom Daschle – Former Senate Leader from Clinton Era
• Secretary of Homeland Security – Janet Napolitano – Actual Newcomer
• Secretary of the Treasury – Larry Summers – Clinton Alumni
• Attorney General – Eric Holder – Clinton Alumni

Now some are looking at this list and wondering where the change is coming for the top cabinet spots.  Here’s where the benefit of the doubt has to come in.

If you voted for Barack Obama and believe that he means what he says and that he’ll work toward a different Washington, one more responsive to the needs of regular folks and less so to the special interests – remember that he’s not even in office yet. 

When these prospective Cabinet members worked for or in the Clinton administration it was in the heady days when the Democratic Party first fell in love with Wall Street and its money.  They were smitten.  These smart people were tired of ceding the “business” argument to the Republican Party.  Except for perhaps Robert Reich and James Carville every Democrat in Washington during the nineties bent over backwards to deregulate and tear down firewalls because Goldman Sachs and their favorite Republican, Alan Greenspan, said it was good for business.

Here’s what’s different: Obama.  Despite all the crap that John McCain and the Republican Party threw at Barack Obama during the campaign, he stayed on message.  That’s integrity.  That’s steadiness and steel.  I believe the guy when he says things are going to change.

As for the retreads – other things have changed.  The Democratic Party is still heavily funded by the investment class and its economic brainpower is still a little too tied to Wall Street for my comfort, but these people aren’t stupid.  They got caught up in the same high flying economy so many did during the nineties.  The difference was they were in power and we can trace some of today’s financial crisis to the policies they pursued back then.  We can only hope they’ve learned their lesson and the great talent of people like Rahm Emanuel and Tom Daschle will be fully aligned with Barack Obama’s world view and public policy.

One thing I do wish they’d try again from the nineties.  Remember when they deregulated cable TV?  I’m still waiting for the “competition” to lower my cable bills.

Bailout Gaining Steam – Investment Class Once Again the Winners

The news today is pointing to Congressional – Administration common ground on the $700 billion Wall Street welfare program.  Here’s hoping that the final plan contains a way for the U.S. taxpayer to be paid back – with interest would be nice (and capitalistic).  I wonder how many of our representatives in Congress know how their constituents feel about this whole rush job while they sit isolated in Washington, D.C.?  Here’s one of them from the comments section of this post:

Bush wants to spend 700 billion dollars to ensure the financial success and future of the same companies that got us into this mess. Since when has the government been in the business of buying privately owned corporations? Why does he think that giving $700 billion to the idiots that got us into this problem is going to solve anything? All he’s going to do is make the rich richer, and our credit-hungry consumerist country is going to continue tanking down the drain until we make some real social change to how we live.

The republican party has got its head screwed on wrong. Let’s wake up and realize that throwing money at the problem isn’t going to fix it!

Congress, right now the Bush Administration owns the concept of this bailout.  Pretty soon, you folks are going to be co-owners of more than the concept.  How about making sure there’s something in there for ordinary Americans?  I’m not talking about bailing people out of houses they couldn’t afford in the first place.  I’m talking about new regulations, the fat cats paying us all back with interest, and ensuring that we’re not here again in five or ten years.

The George Bush Economy – Looks Like a Bailout for the Investment Class

The total silence on the economy and markets this week from the White House was finally broken today when President George W. Bush took to the podium – and said absolutely nothing of real substance.

Bush ran through the bullet points of what his administration has done to calm markets:

• Fannie/Freddie Bailout
• AIG Bailout
• Federal Reserve “adds liquidity” to the market
• Minor moves by SEC to step up “enforcement actions”

This is what he ended with – the reason he cancelled his travel today:

These actions are necessary, and they’re important. And the markets are adjusting to them. Our financial markets continue to deal with serious challenges. As our recent actions demonstrate, my administration is focused on meeting these challenges. The American people can be sure we will continue to act to strengthen and stabilize our financial markets and improve investor confidence.

Bush said, “Our financial markets continue to deal with serious challenges.” Yep, so serious it took you four days this week to speak up. “Challenges,” you say. A challenge is something one encounters that is unexpected, most often meant to be a difficulty not of one’s own making. People – or organizations – which overcome challenges are highly thought of; they’re the folks Americans love. The markets aren’t dealing with challenges. The markets are dealing with karma. Bad behavior, poor choices, and greed put “the markets” in the shape they’re in today. Bush also says his administration is “meeting these challenges.” After more than seven years, Bush is still full of it. The Bush administration is rewarding bad behavior and the entire country is paying for it, bailout by bailout.

The financial markets are no longer the playground of just the investment class. The financial markets add to or detract from the bottom line of nearly every American who has anything socked away for retirement. While nearly a trillion dollars of wealth was wiped out this week on Wall Street, Main Street suffered too. If you have money in a 401k or IRA or other investment vehicle, there is less in that account than there was a week ago. You paid for the unregulated free market. Every time the Bush Administration bails out another one of these pigs, or “adds liquidity” (borrows more money from China) you pay again.

It will be interesting to see what Bush, Paulson, Bernanke, Franks, Cox, and all the other politicians come up with on Friday and through the weekend to save the skins of a few more of their campaign contributors. Just remember, you’ll pay while the folks that got greedy wipe the sweat from their brows, say “Phew,” and enjoy another weekend in the Hamptons.