Wall Street to Play Less Dominant Role (Says Obama)

Wall Street is not going to play as dominant a role in the economy as regulations reduce “some of the massive leveraging and the massive risk-taking that had become so common,” President Barack Obama says.

In other words the government will control the economy and the regulations that have been known in the past to create stagnant and depressed economies, will be put in place and recovery will be slim to none.

The changes in the role of Wall Street and the huge profits that came from that risk-taking could mean other adjustments as well, Obama said in an interview in this week’s New York Times Magazine.

The risk taking was somewhat forced upon financial institutions by the government and their sub prime push.  Organizations such as ACORN and big Democrat donors who were proponents of the GSEs like Freddie and Fannie, exclaimed there were no issues with the fundamentals of these institutions or the sub prime markets when there were plenty of warning signs and republicans tried to curtail the crash in 2006 (when Democrats controlled Congress).

“That means that more talent, more resources will be going to other sectors of the economy,” he said. “I actually think that’s healthy. We don’t want every single college grad with mathematical aptitude to become a derivatives trader. We want some of them to go into engineering, and we want some of them to be going into computer design.”

Is everyone getting this?  The government is sounding more and more like the USSR.  Do people recall how the USSR told you what job you would get based on your skills and qualifications or the government would decide if you would be an athlete at a young age!?  I would have been a gymnast if I grew up in the USSR back in the 80′s – the state is trying to control your life – so long freedom!

The Obama administration is trying to restore more regulations on the financial sector to avoid some of the risk-taking that helped cause the current economic problems.

I guess I should point to my recent flashback post of Milton Friedman(world renown economist) who states what massive regulations do to an economy and that the government cannot fix the economy.

“Wall Street will remain a big, important part of our economy, just as it was in the ’70s and the ’80s,” he said. “It just won’t be half of our economy.”

Obama, obviously didn’t study very much in college (definitely not economics), or he is just so egotistical that he feels that the things Carter did just didn’t work because it was Carter, but he can do the same thing and it will be different.  The economy in the late 70′s early 80′s was a disaster.  The economy began to recover after massive tax cuts for corporations and individuals and when the government got out of the way – Reagan did this and Obama is the antithesis of Reagan – why does he think that doing the opposite of what was done in the 80′s to get the economy back on track will work?

Obama said he expects that government efforts to fix the economy will cause long-term changes.

Sure, because the government is just so efficient at everything else.  It’s also amusing that this class warfare is so “put-on” because most of his cabinet came from Goldman Sachs or has ties to and donors from Wall Street.  Wall Street contributes on average more to Democrats than Republicans.  Almost everyone, including Obama himself, have received kickbacks from Wall Street or have worked there at one point.

WAKE UP people!

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