Lesson Learned?

Now that former Goldman Sachs acolyte John Corzine has been showed the door in the State of New Jersey. What does this mean for President Obama? Quite Simply, that business as usual is not going to get it done. Its really ludicrous for citizens of the Garden State to do something so self destructive as to elect Chris Christie, but something had to be done to alert Obama that the looting of America has got to stop. I totally believe that this victory by Christie was a protest vote not only against Corzine, but a vote against Goldman Sachs and Wall Street in general. Of course the economy sucks in Jersey, the property taxes are out of control, and the budget problems are a headache, no one can come in and fix them including Christie, but this was a vote executed out of anger and rage against what was seen as bottom line kleptocracy. Not all of the problems are Corzine's fault, but he is seen as proxy for Obama, and he had to pay for it.

This is not a GOP/DEM issue. Mayor Mike Bloomberg after spending $100MM in his election, barely defeated his opponent. Many people are just fed up with Wall Street executives. They are fed up that Geithner/Bernanke are more convinced that restoring the credit/financial system to what it was 5 years ago is in the bets interests of America. These fat cats are not interested in reform or regulation. You can see it Geithners FSA program.

The entire planet thinks that TBTF financial institutions are systemically dangerous. There has already been major downsizing this week alone in Great Britain's banking circles.

Ludicrously, the Obama administration has maintained that large banks should be preserved because they play an important role in the economy and that taxpayers instead should be protected by creating a new system for liquidating large banks that run into problems.

But the lesson to be learned from whats happening in Europe is the supposed economies of scale of massive financial institutions are outweighed by the difficulties in controlling risk inside them.

Why is this point not filtering into the minds of Geithner/Bernanke/Summers/Obama? What are they waiting for?

I am a NJ Democrat who is very happy that Corzine lost last night. Its a wake up call for the Democrats and Obama that the looting of America has got to stop!