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Gasparino: Wall Street Will Back Obama in 2012

Tuesday, 19 Oct 2010 04:01 PM

Despite his recent rhetoric against Wall Street, President Barack Obama is actually in cahoots with fat-cat bankers, giving rise to crony capitalism and the likelihood they will support him in a 2012 re-election bid, says best-selling author and Fox Business Network correspondent Charles Gasparino.

Wall Street’s support of Republican candidates in this year’s elections simply reflects the fact that it wants to be on the winning side, Gasparino, author of the new book “Bought and Paid For: The Unholy Alliance Between Barack Obama and Wall Street,” tells Newsmax.TV.

“It’s a hedge,” he says. “Wall Street likes divided government, but the question is will they support this president, and I believe in 2012 they will. They are telling me that they are willing to support him as much as they support a Republican.”

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And why is that? It’s because the White House and Wall Street have engaged in crony capitalism, Gasparino says.

“These big companies like GE, like the big Wall Street firms, make money more than Main Street when big government starts doling out the benefits,” he says. “They know that the Republican Party’s activist wing is the tea partyers, who are dead set against crony capitalism, dead set against bailouts.”

Editor's Note: Get "Bought and Paid For" at a Great Price from Amazon -- Click Here Now.

And that’s the ideology that will push the Republican agenda, he says. “They (big corporations and banks) would rather deal with the Obama Administration than a Republican party supported by tea parties any day of the week.”

The new bank regulation goes too easy on the big banks, continuing to protect those deemed too big to fail, Gasparino says. And that creates the danger of another financial crisis.

“The mechanisms are in place for this to occur again, because too big to fail is now in the law,” Gasparino says. “When this thing is forgotten, and it may be three years from now, I can't tell you, but you will have the mechanism in place for round two of a banking crisis.”

Obama’s tax policies are causing great economic harm, Gasparino says. “There's a reason why we have meager GDP growth and we have 9.5-10 percent unemployment,” he says. “It's because businesses are afraid of all of the taxes that are going to be heaped on them come next year.”

And it’s not just the expiration of Bush era tax cuts, Gasparino explains. It’s also taxes paid by those who hire new workers. “We're talking about entrepreneurs, small businesses,” he says.

“While Wall Street may not care about crony capitalism, small businesses do because they worry about the administration’s crash course to socialize vast portions of our economy.”

As for Obama, there’s talk that he’s a socialist, Gasparino notes. “I can't tell you whether he is or not, but I can tell you this: he's either economically na├»ve or a guy that is so dead set on a progressive agenda that he doesn't care about high unemployment.”

Further easing by the Federal Reserve will do little to help, he says. “We've had interest rates at zero now for two years and still we haven't had the ‘V-shape’ recovery,” Gasparino points out.

“So now the Fed is doing this other program (quantitative easing), and I don't think it’s going to have much impact because the bottom line is people need to work.”

Editor's Note: Get "Bought and Paid For" at a Great Price from Amazon -- Click Here Now.

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Despite his recent rhetoric against Wall Street, President Barack Obamais actually in cahoots with fat-cat bankers, giving rise to cronycapitalism and the likelihood they will support him in a 2012re-election bid, says best-selling author and Fox Business...
Gasparino,Wall,Street,Obama
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2010-01-19
 

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