Good News from Wall Street … Bad News for Democrats?

This morning, the financial world awakened to a wonderful sight — a record $3 billion first quarter projected profit from Wells Fargo.

The Democrats must be pissed.

Any signs of recovery–or, more accurately, any sign that a perceived “crisis” may be waning–translates into a more difficult task for our resident lefties in Washington, D.C., in that the radical, power-grabbing measures they’ve already been advocating and the rest of the government expansion they’ve been hoping for might be more difficult to pass by the American people if those people aren’t quite as scared as they were before.

Vladimir Lenin was known to say, “the worse, the better.” Conversely, according to the same logic, the better things are, the worse for anyone pushing a collectivist agenda.

Perhaps this is the reason that the Treasury Department, is hesitant to publicize the results of the banking industry “stress tests” until after earnings reports are in, despite the measure being hailed by experts on the political right and left as a good idea and step in the right direction to assess potential long-term pitfalls among Wall Street giants.

The Treasury argues that the decision to maintain silence until after the earnings season was made in order to avoid spooking the markets, but that line of thinking only works if the result is negative and one or more banks revealed itself to be in truly dire straits. For some reason, I get the feeling that the news might be on the positive side, that every single institution passed the federal “stress test,” and despite not necessarily being out of the woods, proved themselves to be far more solvent than previously thought.

See, by the same logic advanced by Rahm Emanuel, Hillary Clinton, Barack Obama and Vladimir Lenin, if the crisis wanes, so does the easy path to expanded power. Timothy Geithner and Barack Obama want to maintain control over banks and business–that’s why the federal government is refusing to accept TARP money being returned by those institutions–and, as always, good news for America translates into bad news for Democrats.

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Comments

  1. Anonymous says:

    So his policies are beginning to work and that’s good for the Republicans? The Party of No is impotent.

  2. Anonymous says:

    Yet another broken obama promise. With todays unemployment numbers at 650,000 new; BO is now a net 5.2 million jobs BEHIND on his promise to save or create 2-3million jobs since winning the election and butting into W’s adm. by taking control in December of last year.

  3. whats_up says:

    I’m sorry Jeff but Democrats arent upset by this news, they want to get things turned around as quickly as Repubs, they just have a different idea on how it would work. Also this gives credibilty to how they have handled things. Looks like maybe Obama’s plan is working (although it is still early), thats a good thing, not a bad thing.

  4. WENDRASK says:

    Hmmmm… and why won’t they take their TARP funds back?

    I’m planning on attending my local TEA PARTY on April 15th.

    I found a site where someone has provided PDFs for having your own signs printed for a couple bucks at FedEx Office or Office Max…

    Click here for Tea Party Signs

  5. Gail B says:

    A revealing speech by Kuttner at the beginning of an hour-long video (not his entire speech) is at

    http://ncrc.org/

    and makes great sense. AKA Obama has to succeed in three areas or he fails, his presidency fails, and America fails. Congress needs to have its nose pushed into its own poop because Congress caused this mess, including Barney Frank, Timothy Geithner, and others.

    Found another link that is too much for me to understand and wrap my head around, but it doesn’t look good for the US. Will be back later with it.

  6. Gail B says:

    Site looks better, Jeff–much better.

    Thanks for wider reading area. I’m happy (happier).

  7. cher-pa says:

    The Federal government needs to understand that the tarp money is our money.To all institutions that recieved this loan return it and tell Geithner to go to He–!!

  8. Paul says:

    Jeff,

    The new look is great. The news from Wells Fargo is a bit confusing – just recently, they were having financial problems and now they are doing great?! They have a large portfolio of second trust deeds on the books and they on California properties!?

    By the way have you seen this: http://barrysoetoro.com/ – The White House web site?

  9. tm says:

    Yes, they will never release these results because these are the results of the initial BUSH bailout’s. (short lived) The only entity “spooking” the market is Team Bam Bam and the ever making money machine to charge interest on it Helicopter Ben Bernake.

  10. tm says:

    PS We had a very small victory today in the senate with 10 democrats coming to our side.

    http://online.wsj.com/article/SB123923589432903367.html

  11. Anonymous says:

    Wonder how things would be if they hadn’t messed with everything and thrown away so much unaccounted for $ – ours.

  12. Anonymous says:

    Some clarification from
    http://www.therightsideoflife.com/

    Update: The domain owner wrote back:

    Hi Phil,

    No, I haven’t worked on whitehouse.gov. I simply pointed the domain name barrysoetoro.com to the whitehouse’s website. During the election, the domain was pointed to JohnMcCain.com (the candidate of my choice). In addition to the above mentioned domain name, I own several other Barack Obama related domains including:

    - amabokcarab.com
    - amaboniessuhkcarab.com
    - impeachsoetoro.com
    - kcarabamabo.com
    - kcarabniessuhamabo.com

  13. Anonymous says:

    I don’t get this:

    By the way have you seen this: http://barrysoetoro.com/ – The White House web site?

    Why does that addy link to the White House site????

  14. CAL says:

    I hope you are right. It would be nice to be coming out of this mess, but either way it is a win win for Obama. If the banks are out of the woods – he will take credit for it and all these bailouts will be justified. In reality, many if not most of the banks that took bailout money were made to be the fed.

  15. Ian Thorpe says:

    Don’t get carried away with the news from Wells Fargo. It is encouraging but we must remember the retail (current account transactions) side of banking was always profitable. They make their money from charging us fees and commissions on tranactions and interest on loans, overdrafts etc.

    In the deregulations of the 1980s and 1990s retain and investment banks were allowed to merge into superbanks and also take over specialist mortgage providers (called Building Societies in Britain and I think, Savings and Loan companies in the U.S.

    The superbanks invented debt derivatives, collateralised debt trades and all the other flavours of toxic debt.

    The cycle of writeoffs and writedowns of the value of these dubious assets caused the massive losses of 2008 has ended.

    Experts say there is worse to come as the web of debt trades unravels. $1Quadrillion has been mentioned. Ouch!

  16. vcw39 says:

    When I went to http://barrysoetoro.com/ and got a link to the White House I started laughing as my eye caught the item about the White House garden, and I then remembered a joke about the White House gardener getting fired because someone overheard him ask where the spade and the hoe were at.

  17. Anonymous says:

    So, taxpayers’ bailout allows record quarterly profits to Wells Fargo. And, again, how does the bailout aid the taxpayers? It’s clear how it aids the bank’s stockholders…
    .

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