Mar 10, 2010

"For nearly two years now we have waited for a speech.  We need a simple speech and a direct speech – most of all a political speech – about what exactly happened to our financial system, and therefore to our economy, and what we must do to make sure it can never happen again.

President George W. Bush apparently did not consider giving such a speech, and Secretary Paulson could never talk in this way.  President Obama seemed, at some moments, close to making things clear - when he talked on Wall Street in September and, most notably, when he launched the Volcker Rules in January.  But President Obama has always come up short on the prescriptive part - i.e., what we need to do - and his implementation people still move as if there were lead weights in their shoes.

Without a definitive speech, there is no political reference point, there is no convergence in the debate, and there is not even any clarity regarding what we should be arguing about.  Without the right kind of speech, there are just many lobbyists working the corridors and a lot of backroom deals that most people do not understand - by design."

Click to go to the Baseline Scenario website and view the entire article.