One last U.S. 2010 Mid-term Election Update

James Kwak, at Baseline Scenario, writes in a concise summary of the election results, “Is This What You Voted For?”.

“Spencer Bachus, the likely new chair of the House Financial Services Committee, has announced that he is planning to use whatever powers he can to gut the Dodd-Frank financial reform bill. Why? According to the Financial Times, Bachus “expressed concern that shareholders of Goldman Sachs and JPMorgan Chase will be hurt because the banks will be less profitable.”

So one major effect of the Tea Party movement will be to further enrich Wall Street banks and the bankers who work there. (Which, I guess, is consistent with the common Tea Party insistence on reducing taxes for the rich.)

Is this what you voted for?”

This quote is half of the post. Read the rest, follow Baseline Scenario, and take notice of how the “Volcker rule” is implemented. The Volcker rule prohibits proprietarary trading, which according to investopedia is

“When a firm trades for direct gain instead of commission dollars. Essentially, the firm has decided to profit from the market rather than from commissions from processing trades.”

Simon Johnson of Baseline Scenario has posted “he text of a letter (about 2,000 words) submitted on Friday to the Financial Stability Oversight Council, in response to their request for comments on the Volcker Rule.”

For more pertinent information from Baseline Scenario about the fate of financial regulation after the 2010 Mid-terms, see this post:

“The answer is straightforward: The Republicans have promised generally not to tighten restrictions on the financial sector, which means specifically that they will seek to make the recent Dodd-Frank financial regulatory legislation less effective.

The Dodd-Frank Act is not strong legislation to start with. The administration started with overly modest goals, and the banks then devoted considerable effort to weakening the bill as it passed through the House. But some pieces that survived have the potential to make a difference – including the Volcker Rule, which in principle would force big banks to get out of the business of betting their capital in ways that can bring down the entire financial system.”

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The “Dean of the Washington press corps”, the Washington Post’s David Broder, has written a column with this roundhouse:

“Here is where Obama is likely to prevail. With strong Republican support in Congress for challenging Iran’s ambition to become a nuclear power, he can spend much of 2011 and 2012 orchestrating a showdown with the mullahs. This will help him politically because the opposition party will be urging him on. And as tensions rise and we accelerate preparations for war, the economy will improve.

I am not suggesting, of course, that the president incite a war to get reelected. But the nation will rally around Obama because Iran is the greatest threat to the world in the young century. If he can confront this threat and contain Iran’s nuclear ambitions, he will have made the world safer and may be regarded as one of the most successful presidents in history.”

Broder, according to Wikipedia, is known as “The longtime columnist is informally known as the “Dean” of the Washington press corps and the “unofficial chairman of the board” by national political writers ” As such, his thoughts may be considered as representative of the pinnacle of American thought (at least one type of American thought). Does that mean that the U.S. always sees war as the best solution to both political challenges and economic challenges? It would seem that Mr. Broder has provided yet another answer to the question of why ‘they’ hate us. Quick, quick, name one leading or otherwise Tea Party person who would not proclaim hate towards a country where leading pundits advocate for a war against them.

LSW harbored a small hope that once Dick Cheney left the limelight the time of the dinosaurs might be over. Given the comments of this “Dean of the Washington press corps and the “unofficial chairman of the board”, that small hope was not founded in the real world.

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