The President seemed was playing the Statesman today in his speech. He appeared to create space for compromise, inviting the Republicans in by not being soft on Wall Street. He highlighted the failure as a collective failure, which it is, but that is not the point. The crisis could have been prevented by the exercise of:
1) Effective Regulation
The topic of the speech was Financial Regulation. It would have been fitting to clarify exactly why the behavior of financial institutions needs to be regulated. It was not a time for pulling punches. More graphic description of the failures of restraint and ethics, might have made a stronger case for regulation.
So what is the title of this Post about? There seems to be a dynamic where a “Promise” is being made. The Promise is that the bill will do what it is reputed to do. It will prevent systemic meltdown and/or cost to taxpayers of future bailouts. A word of warning. A promise is often used to get people to not focus on the current reality, to deny the truth of their actual experience and their present intuition in order to hope a promise plays out. The President downplayed the present experience and the intuition of the American people in an effort to get legislation to pass on the basis of a promise.
The “Promise” is closely related to the “Con”. The Confidence Game involves a “Con Man”, sometimes a “Shill”, and the “Mark”. The “Mark” is the one who believes the Promise and gets taken. I don’t mean to be too negative on the President. I believe he is well intentioned. But unknowingly, he is playing the roll of the “Shill” to Wall Street’s “Con Artist”. You are the “Mark”
The instruction for America? “Don’t rock the boat. We’ve got this.” Do you believe it? $50 Billion in resolution authority funds is nothing if risk is not reined in.
From Wikipedia: A confidence trick or confidence game (also known as a bunko, con, flim flam, gaffle, grift, hustle, scam, scheme, swindle or bamboozle) is an attempt to defraud a person or group by gaining their confidence. The victim is known as the mark, the trickster is called a confidence man, con man, confidence trickster, or con artist, and any accomplices are known as shills.