“We’re an empire now, and when we act, we create our own reality. And while you’re studying that reality – judiciously, as you will – we’ll act again, creating other new realities, which you can study too, and that’s how things will sort out."We all know how that reality turned out. Fast forward to the present and more recent past. The right has adamantly refused to assign any blame to the banking world for the financial collapse in 2008. They have fought every attempt to regulate the financial markets. All the GOP candidates vowed to repeal the Dodd-Frank financial reform completely.
Their cause took a hit last week when J.P. Morgan announced they had just lost $2 billion in a matter of weeks on high risk bets. Jamie Dimon, their CEO has long railed against financial reform. Admittedly J.P. Morgan handled risk somewhat better than other investment banks in the financial meltdown but all the same. Boo effing hoo. Take your medicine and shut your piehole.
In this weeks announcement, Dimon said, "We made a terrible, egregious mistake," and "There's almost no excuse for it.". No shit Sherlock! Out in the real world, this could help undermine Mitt Romney's position that Dodd Frank should be repealed in full and it may help Obama a little.
Then along comes John Thune with the GOP version of reality. The shorter version, We should mitigate risk but not at the expense of forming banks to mitigate risk and we definitely shouldn't be jumping to conclusions.
“We need to make sure we get all facts before jumping to conclusions about the need for greater financial regulation,” he said on Fox News Sunday, "it is important that we make sure we have got some good safeguards in place but in a way that doesn't impair their ability to mitigate risk and to protect themselves and their balance sheets as well."Fortunately J.P. Morgan can handle the loss. What it shows is the financial markets haven't leared a damn thing and unacceptable risks will still be undertaken. Meanwhile, the GOP's vision of reality remains at odds with reality.