Politics USA: Economy: Wall Street warned of strict enforcement of new regulations, no more bailouts

At last, President Barack Obama has indicated a strong approach to the financial sector, particularyly superbanks and brokers, like Lehman Brokers, which bellied up in the meltdown. A thawt may be formulated: which the govt allowed to belly up, quickly absorbed by a competitor finance/bank company.

Of course, the particularly r+twing media, particularly FoxNews.com economic ideologues, has piled on Obama for his increase of regulation over this particular industry. South Carolina Republican member of Congress, Jim DeMint, reduced the move on the basis of his time-frozen opposition to regulation in principle. Reformational philosophy and economic thawt informed by it has never weilded the slogan "No regulation by govt" in regard to the relation between our American govt and our American (relatively) free enterprises. I should at least in passing note that Obama has often cited the historical tradition of President's calling for health reform in America, he citing Teddy Roosevelt's advocacy 100 years ago.

I've chosen a passage for quotation a passage by Henry J. Pillizi and Eleanor Laisse, Obama urges Wall Street not to ignore lessons of crisis"m (Wall Street Journal, Sept14,2k9).

Mr. Obama's speech at Wall Street's Federal Hall marks the one-year anniversary of Lehman Brothers' failure. Since then, the government has undertaken an unprecedented effort to stem the financial meltdown, including the Federal Reserve's quantitative-easing measures, the Troubled Asset Relief Program and the bailouts of General Motors and Chrysler, initiatives Mr. Obama said are beginning to pay off.

"While full recovery of the financial system will take a great deal more time and work, the growing stability resulting from these interventions means we are beginning to return to normalcy," he said. "But what I want to emphasize is this: normalcy cannot lead to complacency."

Mr. Obama's planned overhaul would dramatically rewrite the rules of the road for the U.S. financial sector, with new protections for consumers and safeguards against the potential collapse of more big banks. But it is unclear if Congress can unite behind a revamp on Mr. Obama's timetable, given the time-consuming debate over health care and disagreements between lawmakers on the major components of the overhaul.