Obama, so far

I'm beginning to have some serious doubts about Obama's handling of the financial mess so far. His latest plan to take care of the toxic asset problem seems like a classic case of privatizing the profits and socializing the losses. He's offered to lend money to large financial institutions and hedge funds to buy the troubled "legacy" assets of the banks with very little of their own money. They can put up as little as 6% of the total cost and borrow the rest from the Treasury. They are only risking the 6%, but have a huge upside potential if the assets turn out to be not as bad as expected. Not only is the risk/reward ratio out of whack, it looks like banks will be able to game the system to have guaranteed profits. The MSM hasn't really had a lot to say about all this, but some negative commentary by very respected economists is easy to find.  Look here, and here, if you're interested. 

I think the fundamental problem is that Wall Street owns the Treasury department, and has for the last 20+ years. Larry Summers, Robert Rubin, and Hank Paulson, all former Treasury secretaries are also former Goldman Sachs CEOS's. Tim Geithner and Ben Bernanke were at the helm at the Fed as all of this was unraveling a year ago. It's easy to think of it all as a giant conspiracy that would make Tony Soprano blush. 

If you have a half hour to kill, watch this video from Bill Moyers Journal. It's pretty scary.

Another point where Obama is falling down is the pursuit of justice for the war criminals in the Bush administration.  The Red Cross report on Guantanamo detainees has been leaked and some Justice department torture memos have been released.  I'm not sure what else he needs to let the prosecutors loose.  While paying lip service to prosecuting criminality, he says he wants to look forward and not back.  Imagine if that philosophy were applied to crime in general.  Isn't all crime committed in the past? Maybe he's slow-playing his cards, and the lord knows he's got enough on his plate, but the right wing is already rabid in their hatred of him, so I don't see what he's got to lose. 

And what's he doing in Afghanistan?  That truly will be his Vietnam if he continues on the course he's apparently chosen.

I'm still a fan of Obama, and he was by far the best choice for President, but I'm still waiting for some change I can believe in.