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Sunday, May 20, 2012

Why Deal with Reality? Dodd-Frank and Obama

In his weekly radio address, president Obama spoke about the need for regulation of Wall Street and about how lobbyists and Republicans are trying to block that regulation from happening. Huh? The speech makes no sense. It is roughly the equivalent of Obama blaming pro-choice activists for currently trying to get his mother to abort him. Sure, Obama's mother is dead and Obama was born long ago, but the argument in the speech is about the same thing. The Wall Street regulation that Obama wanted was passed in the Dodd-Frank law in 2010 by an overwhelmingly Democrat Congress. It already is law. Any regulations that have to be issued will come from agencies under Obama's control. Congress cannot stop those regulations unless it votes to overturn them after they are issued. Of course, most of those regulations have not yet been made public even though the law that authorized them passed about two years ago. In other words, any delay in Wall Street regulation is due to the lethargic performance of the Obama administration and not due to anything that Congress has done.

In summary, Obama already has all he needs from Congress. The GOP cannot stop it; the Democrats put Dodd-Frank in place two years ago. The delay in issuance of regulations is the fault of Obama's own people. Here too, the GOP cannot do anything to stop this; it is Obama's own mess. In other words, Obama's whole speech yesterday is based upon a fantastic lie. It really makes me wonder if Obama believes what he says. Is Obama delusional? Or, is Obama just a blatant liar? Either way, Obama has got to go!

One last note: the Dodd Frank law is responsible for slowing the pace of economic growth in the USA. We also know from the huge losses suffered at Chase due to a failed hedging strategy that Dodd Frank has not prevented a recurrance of the kind of unexpected losses that helped cause the 2008 meltdown. So, Obama's plan does not work and it helps kill jobs and growth. No wonder Obama wants to blame the GOP.

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