Denial is not just a river in Egypt

President’s weekly address – Moving Forward on the Economy vs. Moving Backward.

Following the signing of historic Wall Street Reform legislation, the President lays out his plans to strengthen the middle class, give tax breaks to small businesses that create jobs here, invest in homegrown, clean energy, and cut taxes for working families. The President also contrasts that plan with the agenda outlined by the Republican House Leader that would return America to the policies that created this economic crisis [Ed. in the video he adds "the last 10 years"], drastically increase the deficit, and make permanent massive tax breaks for the very wealthiest Americans.

This is what you will hear from now until the November elections. The economy isn’t bad because of what we did, its all the fault of Bush and the Republicans. Just ignore facts like the Democrats took over the House in 2006 so if they were so smart, why didn’t they stop all the bad actors on Wall Street then? Hmmm? Also, no mention of Shirley Sherrod.

His and the Democrats finance reform is nothing but more of the same. Did the SEC figure out Enron was cooking its books with off balance sheet transactions? There were a whole host doing much the same (Dated video – Global Crossing is hardly mentioned because it was mostly Democrats.). Where was the SEC? Enron got exposed because of an insider whistleblower. A point made by Alan Greenspan in his book, The Age of Turbulence, where he notes in all his years in banking, no regulator ever caught anything without a whistleblower. He also pointed out the only value of Sarbanes-Oxley was requiring chief executive officers and chief financial officers to sign off on company financial reports and thereby could be held accountable. The rest are hoops to be jumped through of no value in revealing fraud and are little more than Flypaper Reports. Sarbanes-Oxley was the result of Enron and its use of off balance sheet transactions to make the company look profitable. Yet Leeman Brothers did the same thing! Yes, the SEC missed it even the second time around.

Harry Markopolos handed slam-dunk proof that Madoff was running a Ponzi scheme to the SEC yet the SEC did nothing. When someone of lower rank was interested, upper levels didn’t think an investigation was warranted. Incidentally, they were all lawyers. Even a lawyer should understand that if Madoff was batting with an average of 0.960, and you could not duplicate his returns with perfect 20-20 hindsight, something must be wrong. Rep. Ackerman (D-NY) – He should also know that once legal proceedings begin the SEC can not discus the case. Wait he does know but it makes good TV for his next campaign plus these were Bush people. His question is valid but “We the People” could ask the same question of him and the other members of the House Financial Services subcommittee. Where was their oversight? While there are checks and balances in the Constitution for elected officials, there is little or no checks or oversight of the bureaucracy. If you want to read something scary, make your blood boil, destroy all confidence in regulators, and will make you doubt anything is different now, read the book by Harry Markopolos, No One Would Listen. Someone should see if he would addres a Tea Party gathering.

This reform adds more bureaucracy, more intrusion into our daily lives, with no assurance of any better performance of the regulators. After reading Harry’s book, you will be certain this is the case. If they can’t solve a Ponzi scheme handed to them on a silver platter, how are they going to find derivative scams or whatever the next scam will be?

In his weekly address he also referenced the decade that gave us the huge debt. Evidently he is not familiar with this plot.

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