Obama Talks TIME’s Wall Street Cover Story on ABC’s This Week

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TIME Cover: How Wall Street Won
PHOTO-ILLUSTRATION BY JI LEE FOR TIME

U.S. President Barack Obama told George Stephanopoulos on on ABC’s This Week on Sunday that while he believes “the banking system works,” America isn’t “near where we need to be” in terms of an economic recovery. 

Marking the fifth anniversary of the collapse of Lehman Brothers this weekend, Stephanopoulos questioned Obama about his views on financial reform, citing TIME’s latest cover: “I’m looking at the cover of TIME Magazine this week.  It says, “How Wall Street Won.”  And we’ve got polls showing that, you know, two thirds of the country still think we’re going in the wrong direction, think the economy is no more secure.  What do you say to those Americans who think Wall Street is winning but they’re not?” Obama replied:

Well, let’s think about where we were five years ago. The economy was on the verge of a great depression. In some ways, actually, the economic data and the collapse of the economy was worse than what happened in the 1930s. And we came in, stabilized the situation. We’ve now had 42 straight months of growth, seven and a half million new jobs created, 500,000 jobs in manufacturing, 370,000 jobs in an auto industry that had completely collapsed …

The banking system works.  It is giving loans to companies who can get credit.  And so we have seen, I think undoubtedly, progress across the board.  The housing market has recovered.  But what is also true is we’re not near where we need to be.  And part of it has to do with a whole bunch of long term trends in the economy, where the gains that we’ve made in in productivity and people working harder have all accrued to the people at the very top …

And the folks in the middle and at the bottom haven’t seen wage or income growth, not just over the last three, four years, but over the last 15 years.  And so everything that I’ve done has been designed to, number one, stabilize the economy, get it growing again, start producing jobs again, number two, trying to push against these trends that had been happening for decades now.

Obama explained that his policies are designed to better prepare the banking system for economic distress but that there is still a long way to go.

In a blog posted on the U.S. Treasury Department’s website on Friday, Deputy Assistant Secretary for Public Affairs Anthony Coley responded to TIME Assistant Managing Editor Rana Foroohar’s cover story, agreeing that there is “still more to do to protect taxpayers, consumers and our financial system” in order to contend the economy is no longer at risk, but that calling financial reform a “myth” — as Foroohar did in her cover story — is “wrong”. Foroohar’s response to the Treasury Department’s criticism can be found here.

9 comments
Uncle_Frank
Uncle_Frank

President Obama likes to talk a populist game but actually is doing the bidding of the Wall Street cabal which controls both political parties. Until we get more Elizabeth Warrens and Bernie Sanders elected to office nothing will really improve for those on Main Street. We have been under an oligarchy since that actor fellow became president and introduced the world to that system known as Reaganomics'.

arvay
arvay

This is the usual blabber nonsense from Obama.

He's an integral part of the Reagan (who he admires, remember?) Bush - Clinton- Bush deregulatory strategy that's in the process of destroying the middle class. His "reform" is a sham -- dependent on regulators who can be politically replaced and/or bought off by lobbyists. 

Progressives need to do their own Tea Party primary thing, and help to destroy both the democratic and Republican parties. 

Then we can actually duke it out for the future of America. 


MicheMM
MicheMM

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DumbNiggero3
DumbNiggero3

Obama is boring and has no credibilty.. when he gave his speech last Tuesday..more people watched reruns of seinfeld than him!! 

cloudninegirl
cloudninegirl

The banks have fed on the American Dream like hogs at a trough. All the politicians have done is help these greedy scumsuckers get fatter.

jmac
jmac

"The banking system works."  

Yes, it does.  For bankers.

"Obama explained that his policies are designed to better prepare the banking system for economic distress . . ."

The f-blankety-blank-bllank banking system CAUSED the recession.   Bundling toxic loans that they knew were worthless and selling them to other banks in the dead of night with clever little derivative/credit default swaps was a nasty little business based on greed.   THEY KNEW WE'D BAIL THEM OUT!  They knew we couldn't risk another great depression.  And now, according to the Time's spokeswoman I saw on tv in her bright yellow jacket, the banks are holding on to money because they're afraid we might not bail them out the next time     -----   ( if they decide to play casino with our money - she didn't mention that).  Why not?  Why didn't she add what they did as she said they're afraid we won't bail them out again?)

I'd personally rather go into a second Great Depression than bail out the banks for Wall Street again.  Let it crash and burn.   That apparently is the only way we're going to learn a lesson as Republicans continue to ignore what happened and push for more deregulation and less transparency.   



vstillwell
vstillwell

No one in Congress wanted to touch banking reforms after the collapse. I saw the hearing where two senators, one Republican and one Democrat, showed up to grill the Justice Department on why there were no convictions of the big bankers. Both of those Senators no longer serve. The Republican was voted out and the Democrat was a fill in for Joe Biden. 

The Democrats mustered together a piece of crap bill to regulate Wall Street. Republicans did nothing, and in the next election cycle, the American people rewarded those do nothing Senators with another term in Congress. Yes, this is all the American people's fault. We elect our representatives and we obviously hold them to a very very low standard. Maybe if we unplugged the TV and actually picked up a real news paper and used common sense for once, things would get drastically better in a hurry. I'm not holding my breath that this will happen. 

jmac
jmac

@vstillwell Both sides play the greed game with Wall Street - but one side doesn't believe that it was the banks who caused the crash and still want to deregulate and not have transparency in their actions./    It's not an equal Republican/Dem when you come to the answer of cleaning it up.  One side still is owned by Wall Street and the op-ed of the Wall Street Journal  - and it's not Democrats.  

The Democrats mustered through what they could get through and Republicans are still fighting even the watered down Dodd/Frank.     

joe64554
joe64554

@vstillwell Campaign finance it crooked therefore we never get any good people to vote for.  So much needs fix it's insane but without a strong independant leader the obvious insanity doesn't ever get addressed or even mentioned.