Why Wall St. Is Deserting Obama

[ScreamingEagle]

Can our country afford to have investments in America disappear due to Obama's policies?

Daniel S. Loeb, the hedge fund manager, was one of Barack Obama’s biggest backers in the 2008 presidential campaign.

A registered Democrat, Mr. Loeb has given and raised hundreds of thousands of dollars for Democrats. Less than a year ago, he was considered to be among the Wall Street elite still close enough to the White House to be invited to a speech in Lower Manhattan, where President Obama outlined the need for a financial regulatory overhaul.

So it came as quite a surprise on Friday, when Mr. Loeb sent a letter to his investors that sounded as if he were preparing to join Glenn Beck in Washington over the weekend.

“As every student of American history knows, this country’s core founding principles included nonpunitive taxation, constitutionally guaranteed protections against persecution of the minority and an inexorable right of self-determination,” he wrote. “Washington has taken actions over the past months, like the Goldman suit that seem designed to fracture the populace by pulling capital and power from the hands of some and putting it in the hands of others.”

...

Now Mr. Loeb, who manages about $3.4 billion at his firm, Third Point Partners, has articulated in a more thoughtful way what a lot of others in finance and business are saying.

“We have given a great deal of thought about the impact that public policy has on individual companies, industries and the economy generally,” he said. Third Point has sold its investments in big banks as a result of “regulatory headwinds”; got rid of its stake in Wellpoint, which Mr. Loeb described as “a statistically cheap stock owned by several hedge funds, but which we saw as being overly exposed to unpredictable government regulation”; and taken a short position against for-profit education companies as a result of “the government’s increased willingness to use its regulatory muscle.”

Mr. Loeb’s views, irrespective of their validity, point to a bigger problem for the economy: If business leaders have a such a distrust of government, they won’t invest in the country. And perception is becoming reality.

Just last week, Paul S. Otellini, chief executive of Intel, said at a dinner at the Aspen Forum of the Technology Policy Institute that “the next big thing will not be invented here. Jobs will not be created here.”


Sorkin: Why Wall St. Is Deserting Obama - NYTimes.com

 

[johnrocks]

Wall St. is going to embrace whoever they think is going to give them the most cheese, no different than an inner city welfare recipient.

 

[8537]

It's becoming more difficult to socialize the risk.

 

[johnrocks]

It's becoming more difficult to socialize the risk.

They want the rewards to go untouched but want the risks to be underwritten by fools like you and me.

 

[Oddball]

I don't see the Fed, Fannie/Freddie, friends of Goldman Sachs and gubmint employee unions having any problems getting their risks and losses socialized.

 

[johnrocks]

They want their cheese too bro.

 

[Luissa]

And I should be upset by this?

 

[CrusaderFrank]

Wow, Obama's against free enterprise, whodathunkit?

 

[CrusaderFrank]

The raping of Chrysler Senior Secured Creditors, the extortion of BP, the takeover of the US auto industry, the takeover of US HealthCare were all just blips, but the Goldman suit! Wow! That's serious!

 

[ScreamingEagle]

Wall St. is going to embrace whoever they think is going to give them the most cheese, no different than an inner city welfare recipient.

Only one big problem....they are companies that provide tons of JOBS...you would rather a chinaman or indian take them?

Also....they are companies that millions of Americans invest in.....should we start investing in China or India instead?

 

[johnrocks]

Wall St. is going to embrace whoever they think is going to give them the most cheese, no different than an inner city welfare recipient.

Only one big problem....they are companies that provide tons of JOBS...you would rather a chinaman or indian take them?

Also....they are companies that millions of Americans invest in.....should we start investing in China or India instead?

Government intervention is why these questions even have to be asked.

 

[Mr. Shaman]

Can our country afford to have investments in America disappear due to Obama's policies?

Yeah.....we need to Allow The Marketplace To Regulate Itself.

[ame=http://www.youtube.com/watch?v=f2iHksmF7m4]YouTube - American Casino: Greenspan's "flaw in the model"[/ame]​

 

[editec]

AS Obama and company seek to regulate Wall Street naturally they will favor out of favor with the Wall Street mavens.

This is to be expected.

Given how much money All Street gave the Ds in the last election cycle, and how much they're now giving to Republicans I expect that if Obama tries to do the right thing, it is going to cost him dearly.

AFter all, isn't that the American way, today?

Money = FREE SPEECH.

 

[ScreamingEagle]

Wall St. is going to embrace whoever they think is going to give them the most cheese, no different than an inner city welfare recipient.

Only one big problem....they are companies that provide tons of JOBS...you would rather a chinaman or indian take them?

Also....they are companies that millions of Americans invest in.....should we start investing in China or India instead?

Government intervention is why these questions even have to be asked.

So you must agree then that Obama's policies are destroying jobs...

The libruls hatred of wall street only seems to destroy our country...

 

[Mr. Shaman]

Wall St. is going to embrace whoever they think is going to give them the most cheese, no different than an inner city welfare recipient.

Also....they are companies that millions of Americans invest in.....should we start investing in China or India instead?

Yeah....what're the chances THAT'S gonna happen??!!!!

​

 

[johnrocks]

Only one big problem....they are companies that provide tons of JOBS...you would rather a chinaman or indian take them?

Also....they are companies that millions of Americans invest in.....should we start investing in China or India instead?

Government intervention is why these questions even have to be asked.

So you must agree then that Obama's policies are destroying jobs...

The libruls hatred of wall street only seems to destroy our country...

Sure am but Corporations are no different than you and I are; we all are going to act and react in which serves our own best interests, companies will go abroad or do whatever it takes to increase their bottom line, I don't blame them for that but the GOP subsidizing and supporting things like NAFTA don't help us either.

 

[Care4all]

Wall Street donated $700 million to Democrats in 2008, but the Dems did not come through, and they feel demonized. Wall Street has donated nearly $700 million to the Republicans for the 2010 year elections and now the republicans are reaping the benefits....because Wall Street thinks they will help them.

the Ferris wheel keeps turning, just like the money meant to influence keeps flowing.

 

[Mr. Shaman]

The raping of Chrysler Senior Secured Creditors, the extortion of BP, the takeover of the US auto industry, the takeover of US HealthCare were all just blips, but the Goldman suit! Wow! That's serious!

That's more-or-less what the SEC suggested.........
​

"The SEC alleges that Goldman Sachs structured and marketed a synthetic collateralized debt obligation (CDO) that hinged on the performance of subprime residential mortgage-backed securities (RMBS). Goldman Sachs failed to disclose to investors vital information about the CDO, in particular the role that a major hedge fund played in the portfolio selection process and the fact that the hedge fund had taken a short position against the CDO.

"The product was new and complex but the deception and conflicts are old and simple," said Robert Khuzami, Director of the Division of Enforcement. "Goldman wrongly permitted a client that was betting against the mortgage market to heavily influence which mortgage securities to include in an investment portfolio, while telling other investors that the securities were selected by an independent, objective third party."

[ame=http://www.youtube.com/watch?v=MMSa1WYUFJc]YouTube - Goldman Sachs fraud, how they cheated investors with exploding bonds - Part 1 of 2[/ame]
*
[ame=http://www.youtube.com/watch?v=IvfyMn7MOyo&feature=related]YouTube - Goldman Sachs fraud, how they cheated investors with exploding bonds - Part 2 of 2[/ame]


Yeah......poor Goldman Sachs.....they couldn't help themselves.....​

 

[ScreamingEagle]

Can our country afford to have investments in America disappear due to Obama's policies?

Yeah.....we need to Allow The Marketplace To Regulate Itself.

[ame=http://www.youtube.com/watch?v=f2iHksmF7m4]YouTube - American Casino: Greenspan's "flaw in the model"[/ame]​

The day Waxman goes after Barney Frankenstein is the day i'll believe Dems are really concerned about protecting the American public...

So how was this real estate bubble created in the first place?

In 1994, the Clinton Administration went directly to the Department of Housing and Urban Development (HUD), and promoted an initiative called The National Homeownership Strategy, which pushed for looser and more creative lending guidelines from both the public (FHA & Fannie Mae/Freddie Mac) and private sector's lending institutions .

They released a document, called "The National Homeownership Strategy: Partners in the American Dream," and here's a telling excerpt:

"For many potential homebuyers, the lack of cash available to accumulate the required downpayment and closing costs is the major impediment to purchasing a home. Other households do not have sufficient available income to to make the monthly payments on mortgages financed at market interest rates for standard loan terms. Financing strategies, fueled by the creativity and resources of the private and public sectors, should address both of these financial barriers to homeownership."

And it worked: from 1994 to 2004, the percentage of U.S. homeowners rose from roughly 64% to roughly 69%. Loose lending guidelines, continued and exacerbated by the Bush Administration and its artificially low interest rates, made money cheap, easy, and available to everyone, which created a buying frenzy, which, of course, drove up real estate prices, creating the real estate bubble. Never mind the fact that many of these borrowers were simply not qualified for homeownership, and subsequently defaulted, leading to an avalanche of foreclosures, which burst that real estate bubble.

Incidentally the National Homeownership Strategy document was posted on HUD's website until 2007, when HUD removed it, presumably out of embarrassment and fear of denouncement.

The U.S. government specifically condoned and encouraged the subprime mortgage industry, despite its current cries of outrage. This is our government, that we created, out of complacency and foolishness. We wanted cheap money, they made it a reality, and now we want someone to blame, so we can sleep at night feeling like innocent victims. Look in the mirror, and look at your politicians."


Read more: The True Story Behind The Economic Meltdown: Hud, The Clinton & Bush Administrations, And The National Homeownership Strategy
Under Creative Commons License: Attribution

 

[johnrocks]

Can our country afford to have investments in America disappear due to Obama's policies?

Yeah.....we need to Allow The Marketplace To Regulate Itself.

[ame=http://www.youtube.com/watch?v=f2iHksmF7m4]YouTube - American Casino: Greenspan's "flaw in the model"[/ame]​

The day Waxman goes after Barney Frankenstein is the day i'll believe Dems are really concerned about protecting the American public...

So how was this real estate bubble created in the first place?

In 1994, the Clinton Administration went directly to the Department of Housing and Urban Development (HUD), and promoted an initiative called The National Homeownership Strategy, which pushed for looser and more creative lending guidelines from both the public (FHA & Fannie Mae/Freddie Mac) and private sector's lending institutions


. They released a document, called "The National Homeownership Strategy: Partners in the American Dream," and here's a telling excerpt:

"For many potential homebuyers, the lack of cash available to accumulate the required downpayment and closing costs is the major impediment to purchasing a home. Other households do not have sufficient available income to to make the monthly payments on mortgages financed at market interest rates for standard loan terms. Financing strategies, fueled by the creativity and resources of the private and public sectors, should address both of these financial barriers to homeownership."

And it worked: from 1994 to 2004, the percentage of U.S. homeowners rose from roughly 64% to roughly 69%. Loose lending guidelines, continued and exacerbated by the Bush Administration and its artificially low interest rates, made money cheap, easy, and available to everyone, which created a buying frenzy, which, of course, drove up real estate prices, creating the real estate bubble. Never mind the fact that many of these borrowers were simply not qualified for homeownership, and subsequently defaulted, leading to an avalanche of foreclosures, which burst that real estate bubble.

Incidentally the National Homeownership Strategy document was posted on HUD's website until 2007, when HUD removed it, presumably out of embarrassment and fear of denouncement.

The U.S. government specifically condoned and encouraged the subprime mortgage industry, despite its current cries of outrage. This is our government, that we created, out of complacency and foolishness. We wanted cheap money, they made it a reality, and now we want someone to blame, so we can sleep at night feeling like innocent victims. Look in the mirror, and look at your politicians."



Read more: The True Story Behind The Economic Meltdown: Hud, The Clinton & Bush Administrations, And The National Homeownership Strategy
Under Creative Commons License: Attribution

Don't hold your breath on that one, both Parties are like Mother bears, they are going to protect their own;come hell or high water.