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...and bank reform depends on transparent use of taxpayer's funds. Considering that the banks have already shown their irresponsible behavior with the "recovery" money that was handed to them, we can pretty much surmise we're in trouble.

Mari–check your facts about who was in control of Congress and when.I think you will be surprised to find that Democrats were responsible for the votes to go to war in Iraq, and the votes for the spending during Bush's administration.

Good thing that we have smarter people trying to fix things than those who post on blogs (self included). some things I find interesting and baseless:
1. Abolish the Federal reserve rants........Well now the Fed under geenspan did some damage with it's policies and I think there was some political motivation on that point. But, to rail on Ben Bernake? Who better for the job than a student of the last great deleveraging event in the US? Deny all you want but the Fed has actually served it's purpose well lately, the lengths they have gone in this "event" are incredible and history will bear that out.

2. Rants on Tim Geitner... Who better? I think that most people have a problem with him because they do not understand what he is talking about. Look kids this is no simple matter and there is probably no way to actually explain in real person terms what is going on in the banks.

3. This beleif that the free market will fix it's self is delusional at best. The market was supposed to, by consideration of it's best interest, regulated it's self to prevent such a thing. Did not happen, never will happen the history of 1880's & 1920's and current are but 3 examples of the falicy of the financial industries ability to self regulate.

For all of you who say "this isn't Obama's Problem"...

YES, IT IS.

If, as a private citizen, you take a job that the person who had it before you failed miserably on... guess what? It's your problem now.

If Obama didn't want the job, he shouldn't have run. If he doesn't want it now, he should resign.

Quit whining.

I read an interesting article in the NYTimes this morning, by conservative, David Brooks, I quote:

" ..... but let's face it the current Republican response is totally misguided. The House Minority leader, John Boehner, has called for a federal spending freeze for the rest of this year. In other words after a decade of profligacy, the Republicans have decided to demand fiscal straightjacket at the one moment in the past 70 years when IT IS COMPLETELY INAPPROPRIATE."

Mr. Brooks is right! Its insane of the GOP! First they controlled BOTH House & Senate from 1994-2007 and spent and DE-regulated all they could! And then, through EIGHT YEARS of Bush they allowed Bush to DOUBLE the National debt and .......... HIDE the TRUE cost of the war!

One question:

WHERE WERE ALL THESE SO-CALLED-FISCAL-CONSERVATIVES WHEN BUSH WAS SPENDING OUR NATION IN TO .......... OBLIVION?????????????????????????????????

Benanke is wrong–it's the economy that makes the banks strong, we need to do what the Chinese are doing–declare war on unemployment. Until people feel secure in their jobs they are not going to spend, they won't take out loans, buy houses or cars.Without that– the only capital these banks will recieve is the money pumped into it by the government, taken from those still employed. Those 12.5 million and growing unemployment number, means less people putting money in the governments pocket. What ignorance is a foot.

I think both democrats and republicans (and their pundit lackeys) are overstating this crisis to advance their agendas and, in the process, causing the market and consumers to panic.

The facts are that:

A) not everyone deserves a loan
B) your house isn't worth the inflated price you paid
C) no one that handles large sums of money should go unregulated
D) the vast majority of us have spent beyond our means and, now that we have stopped, the economy needs to adjust to reality.
E) we don't need 1000 credit card companies, 500 banks, and a starbucks and mcdonalds in every corner.

Once the economy adjusts to a new more common-sensical lifestyle, we will all be fine, just fine.

The Federal Reserve is the biggest risk and filled with crooks.Not many people even know it is a private bank run by unknown money mongers.

Capitalism........free market system.............

These are not religions.

If they don't work, and there have been plenty of examples throughout our country's history with devastating results, then why do we keep on keepin' on?

There are other examples of financial systems around the world....let's investigate them to see if they will work better.

Shocker that the guy who runs a bank cartel wants the banks to be given money. This is not surprising.

Is there someone independent of conflict of interest that has a recommendation on this?

What sense does it make if someone who makes a payment ONE DAY late has the interest on their entire credit balance raised permanently to outrageous rates into the 30% range?

This would discourage me from even making one more payment on that card. The debtor will never get that card paid off at that rate.

The banks haven't figured this out yet. They will when zillions of people stop making credit card payments.

Why bother? Use your money for the bare necessities. Yes, your credit will go down the tube, but you can resurrect it down the line.

Regarding credit card "plastic" debt, if the financial institutions keep raising interest rates/fees like they have been recently, they are really going to lose big in this part of their industry.

What sense does it make if someone who makes a payment ONE DAY late has the interest on their entire credit balance raised permanently to outrageous rates into the 30% range?

This would discourage me from even making one more payment on that card. The debtor will never get that card paid off at that rate.

The banks haven't figured this out yet. They will when zillions of people stop making credit card payments.

Why bother? Use your money for the bare necessities. Yes, your credit will go down the tube, but you can resurrect it down the line.

Does the Federal Reserve need to be re formed? Taken over by the government?

And these are the same banks that charge us outrageous card interest rates while paying out mere pennies on interest to savings accounts. That also hit us with excessive ATM fees, overdraft charges, transaction fees, fees to talk to a live teller ect... And we are suppose to bail them out? Let them fail!

Bernanke is correct, the banks must be reregulated before recovery can begin in earnest. Geithner has been lagging thus far on laying out the details of his plans. America must have a stable banking system to provide confidence in the economy.

Then reform the banks and get on with it.

How about stablelizing the public. Does it make sense for the person that makes 9-10 dollars an hour to be subsidizing the people that make thousands per day? If we live in a capitalist country whatever industry that can not make it. Well let if fail. If it is a good bussiness there wil be someone willing to take the risk and pick it up. The only ones that can't make their money back are the tax payers that are on a salary and always end up picking up the tab for the one that have squandered someone else's money. Every one that makes an investment knows there is a risk, just like every one that has a bussiness knows there is a risk. Let's grow up.

Heard some of the Fed Chairman's presentation and a few Q&As afterward. It struck me that if we do not incentivize the banking system to do the right thing, then bankers will spend most of their time figuring out how to get around the government's regulatory system; in other words, the banking system will do the wrong thing because they make more money that way. Questions are: (1) how do you create incentives so that correct behavior is rewarded? and (2) what is "correct behavior" in a free market?

Anyway, although not in the banking realm, as a parallel concept I thought about how to incentivize doctors and hospitals to treat patients without insurance: why not allow them some sort of tax breaks for treating patients without health insurance? Of course, it causes tax payers to pay the bill, but it provides the medical industry a clear message about what we as a society regard as "correct behavior" and it preserves the idea of a market rather than creating another government program. So what about banks – is there a regulatory system we can construct that promotes "correct behavior" with rewards?

not just reform, but OVERSITE, these people, especially the ones that received bailout monies,need a few FBI and IRS officials inhouse to monitor their comings and goings,then maybe the American people who are paying for this scandle will feel somewhat protected..

Blah, blah, blah, blah, blah.

S.S.D.D.

If we had just let them fail at the onset, we would likely be on the re-bound right now. If I recall correctly. About 85% of Americans demanded that. Instead, about .0000001% (Congress) decided to "Bail" them out. Well, they're still failing, and we're still paying.

Blah, blah, blah, blah, blah.

Micheal, I don't think any rational thinking person expects this president to fix our economy. First, I don't think government is ever positioned to do much for the economy, except maybe make it worse. Sadly, I think that is what is happening. Government never does ANYTHING efficiently or cheaply. We understand government has to do some things, but they are never done without all kinds of bureaucracy, red tape, cost overruns and waste. I support our military, but they are just as bad as all other government entities. If you have any doubts, look at VA Hospitals and the US Postal Service. Then compare them to privately run counterparts. There is no comparison.

This economy cannot be fixed by government, and certainly not by government spending. Government is too slow, cumbersome and lacking in incentive to ever do a good job of much of anything. Failing businesses, including banks, should fail. The market will not allow a vacuum. The "space" will be filled.

Isn't it sad that we cannot depend on the financial institutions, Wall St, to do the right thing? Their greed is criminal. They are even using our taxpayer dollars to lobby for their benefit.
Rules, regulations must be established as we they will not become credible on their own.
I am not against nationalization of the banks as they cannot be
trusted,

We need to stabilize Obama and Pelosi's spending plans!

The Dow is now at 6805, right about where it was in April of 1997.

Alas, Obama has returned us to the revered days of Clinton prosperity.

Why all the complaining? Those were great days, right?

The greedy rich destroyed this country.

Gotta love the libspeak. I remember when President Bush first came to office and libs were blaming him for the economy back then, nevermind the fact that the economy had started to turn South during the Clinton administration, Libs placed the blame squarely on Bush's shoulders. Now that Obama is in office, the Libs are screaming about how it's not Obama's economy and not his fault. Nice 180, libs, you are truly the masters of hypocrisy.

BTW, the market is UP 253 at the moment and this is the day AFTER the president changed stem cell research restrictions. Maybe republicans can say something negative to make it drop?

If the Recovery depends on bank reform, then what was the stimulus package for? I love Obama, but he is spending a lot of money. Am I right about that or is the GOP constant complaining just getting to me?

Think, people. The banks know that Obama's socialistic plans will bankrupt the taxpayers, so why would the banks now start lending to people who won't be able to pay them back in the future?

"Ben Bernanke said Tuesday that economic recovery hinges on stabilizing the financial system, and proposed new policies aimed at absorbing financial shocks in the future"..... he is dead on target. Obama should take heed. And, yes, this is Obama's economy.

I think it is way too late, the markets have already failed. We just refuse to believe it. Banks and large corporations have played an accounting figures game for so long that the numbers no longer add up.

An accountant/auditing professor once told me that figures can figure, but number never lie.

This is still very much a Republican problem. President Obama can't undo eight years of corruption overnight. The Republicans have cost the taxpayers years and years of $$$$.

This is not obama economy yet. Anybody who expected a turn around after his second day in office is a fool!

This means that the rich people who are taking all the bail-out money are going to have to stop placing their cuts into tax havens in the Cayman islands, and actually start paying US taxes. If all of them paid US taxes like they were supposed to, then we would NOT be in the mess.

Didn't we learn from the fall of the Roman Empire that nothing is too big to fail. Greed and corruptions will erode anything. If they are too big to fail, then that means they were too big to run with any efficiency.
Competion breeds effiency– looks like the don't interfer with business attitude forgot that is the true core of capitalism.

I would love to see the whole rotten Federal Reserve system reformed/abolished. But we all know that isn't going to happen.

Keith Olbermann last night did a great summary of why banks were not regulated. Over the last 10 years or so they spent BILLIONS on lobbying and political contributions. Basically, they own the government. That is why the CEOs can destroy companies and the economy by taking insane risks and then walk away with millions, plus bailouts. I bet no CEO will go to jail over this. Cramer also pointed out last night that we regulate gambling way more than Wall Street. Wall Street did what mafia could never do – rewrote the laws to legalize their criminal behavior. These guys ARE geniuses!

Darn! He had to talk today, just when the market was rebounding...

That's that problem.. Nothing should be too big to fail!!

I believe in the free market system but it seems that the government is having to do all of the heavy lifting while the private sector remains selfishly quiet about what they can do to roll up their sleeves and pitch in to help. The private sector has turned JFK's phrase on its head and has continually asked what the government can do for them, instead of asking what they can do to help their country.

Watched the speech, thought it a good one. If the markets cannot find any solace or good feeling in his speech then the markets deserve to tank, and tank badly. Wall Street has been acting like a 2 year old stamping its foot when things don't go their way.