There is even speculation that she may make a run for the Senate from Massachusetts in 2012 challenging Tea Party fave Scott Brown.
At the same time, economics analyst Yves Smith warns, don't believe the hype: "It is now official that Warren is at best a placeholder; she cannot have much impact. She can't make much in the way of policy or personnel choices; that would encroach on the authority of an incoming director. And even her ability to influence the choice of a nominee is questionable. Her taking the advisory role now assures that the nomination of the permanent director will come after the midterm Congressional elections. Given the virtual certainty of Democratic losses, the odds are high that Team Obama will settle on a "conservative" meaning "won't ruffle the banking industry" choice, and argue its hands were tied.
On the right, Warren, a former Republican, is pictured as a bring down the banks revolutionary. The financial industry hates her, perhaps because she is too smart for them,
Progressive critics fear the Consumer Protection Bureau is only a way to placate the public by containing abuses but without doing too much harm to the bankers. One example: Credit card "reforms" do not roll back usurious interest rates. Requiring disclosure is not the same as ordering the restructuring of loans to make them affordable.
The banksters are publicly unhappy but privately know they are getting off easy. According to the Financial Times, "The full impact of the new global bank capital rules announced at the weekend is likely to be 30 per cent tougher than the headline ratio suggests, according to regulators and industry participants who have studied private banking data."
Just 30 percent! Most Americans don't realize the global dimensions of the crisis and the fact that many in the world are suffering more than we are because of unchecked speculation on Wall Street.
So much for the international bankers at Basel forcing their American kin to impose the tough rules that are needed. What they have achieved has been characterized as bringing forth a mouse. There is nothing in place that will stop a recurrence of the Lehman collapse two years this week, There is no real debate about whether more institutions will fail, only when,
I watched an interview on BCC's Hard Talk program with the head of Britain's Hedge Fund Association who told a hostile interviewer (or maybe an interviewer merely posturing as hostile) that (a) The industry realizes regulation is in its interest and (b), the reforms in America are not that tough.
When you hear a banker say that, you know that the proposed regulations so far are more of a show than anything else.
The Financial News reported that the men (and some women) once labeled the "big swinging dicks" on Wall Street are doing well, thank you. The magazine features a "where are they now" spread showing that many of the top CEOS responsible for the loss of Trillions have landed on their feet, and are now in jobs/sinecures in new firms, and live free of any fear of prosecution.
In fact the new compromised and watered down rules has actually helped the banks prosper. Here's one headline in the FT: "US financials boosted by new bank rules."
At the same time, as the economy continues its jobless non-recovery, the overall situation is bleak according to a more substantive report in the same newspaper: "Big US banks are nearing the end of another disappointing quarter for their trading businesses that has deepened fears over job losses on Wall Street." The New York Times reports that "Wall Steet's Engines of Profit Are Slowing Down." Billionaire Charlie Munger, Warren Buffet's partner says those in economiuc distress should "suck it in and cope."
New figures show a significant rise in poverty with one in seven barely making it. That represents 44 million people. 47 million Americans are on food stamps. One out of five children are in this group. For many, the depression is here.
Last week in Britain, Mervyn King the Governor of the Bank of England spoke to the Trade Union Congress. He admitted that it was unfair when banks were bailed out while there was no help was provided to workers who lost jobs when factories were closed.
Nevertheless, he appealed to the workers to accept tough austerity measures that will lead to public service cutbacks and job losses.
One union leader attacked the TUC for inviting him, calling him the devil. comparing his own union convention to church that invites Satan to give the sermon.
(Note: You can view every article as one long page if you sign up as an Advocate Member, or higher).
