Curmudgeon's Corner

'Fat Cat' Bankers?

Posted by Al Campbell on Dec. 14, 2009

Economy, Political, U.S., Wisconsin, Quality of Life

President Obama, in his Saturday radio address, used this term to describe the latest "enemy of the people" that has come into the politicians' cross hairs.  The insurance companies and 'big pharma' have had their turn in the barrel, so it stands to reason that it is time to roll out the next victims.

The Democrats are now pushing a very substantial piece of legislation through both the House and Senate.  This is, of course, taking a back seat to 'health care reform' and that is likely by plan.  Rep. Barney Frank has been the champion of this re-jiggering of the rules by which all financial institutions must play.

There is, seemingly, an 'enemy of the month' club in place in Washington.  Rep. Frank is among those who have caused significant financial issues in this country through legislation that has been in place for years.  When it becomes apparent, even to those in Washington, that they have created a monster, they roll out the 'name-calling' game plan and vilify those who followed the rules that were laid on them.

An enemy in the cross hairs apparently makes the foul-tasting medicine easier to sell to a dubious public.  Give us someone or something to despise and we'll go along with almost anything, or so it seems.

If there are 'fat cats' that need to be reined in, I'd suggest that we begin with the political elites who throw our money around as if it had no value...wait a minute...I guess its value has largely eroded under the shepherding of the political elites.  The political 'fat cats' are those who unscrupulously make use of their offices to provide favors for their backers always at the expense of the taxpayer.

The financial institutions did precisely what the Congress told them to do through the regulatory environment that exists.  They followed the rules they were handed.  When that advice proves to be bad, it never comes to the minds of politicians to take some share of the blame.  It has amazed me for a long time that we can create so many and such significant 'unintended consequences' in such short time periods as those usually associated with major legislation.

Those who have actually fostered the problem, the 'fat cats' in Congress, begin the process of publicly demeaning an industry that followed their dictates in order to obliterate the trail that leads back to Congress.

This game plan exists at the state level, too.  The difference seems only to be in the number of 'zeroes' that follow the lead digit in the string after the dollar sign.  It seems to be a matter of "only" billions at the state level while its has gotten to be a matter of "trillions" at the Federal level.

All this, in my opinion, demeans the Office of the President when its current occupant stoops to the same level as some in Congress.  Our president needs to be above the use of such tactics, at least 'on the record'.

In the final analysis, it is us who created this problem and it is us who perpetuate this problem every time we vote.  Unless and until we make changes in our vote-casting process, there is little to no likelihood that things in politics will change appreciably.  Maybe that admonition ought be in large type face at the top of every ballot.

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The Curmudgeon Blog today is titled "Durbin In The Dark?".