Thursday, June 10, 2010

Nationalized Risk of Wall Street done by Congress not Wall Street

Recently, House Speaker Nancy Pelosi was heckled by members of ADAPT, a disability rights group, as she addressed a progressive audience this past Tuesday. According to the Politico ADAPT, and other groups, heckled Pelosi for about 20 minutes. As Pelosi wrapped up her speech she, again, accused the ills of the United States economy on the Bush administration. When does the blaming of a prior administration end? Did Pelosi forget that in Bush's final two years the Democrats controlled both chambers of Congress? I understand the blame game is part of politics and is an attempt to keep Americans polarized too.

The most troubling part of her speech was the words she had for Wall Street. "No longer will recklessness on Wall Street be able to cause joblessness on Main Street. No longer will those on Wall Street be able to privatize the gain and nationalize the risk" ( WHAT?!?!?! How can Wall Street nationalize the risk? It is Congress that passed the bailouts and not Wall Street. One can make an argument that lobbyist for Wall Street influenced the process but the lobbyist nor Wall Street actually cast a vote or sign on the dotted line. Granted TARP was signed by Bush but it was passed by Pelosi/Reed led Congress. Our current politicians failed America by nationalizing the risk that Wall Street takes.

The dotcom bubble was not nationalized yet Congress chooses to nationalize the housing bubble; why is that? Did the dotcom's not give enough money to Congress? There is nothing wrong with Wall Street in privatizing gains. Remember the increased profits and stock appreciation of Wall Street fuels our 401K's, IRA's and our nest eggs. I do agree with Speaker Pelosi that we cannot nationalize the risk but be honest as to who is nationalizing the risk. It is Congress that is nationalizing risk and the President rubber stamps it.