Elizabeth Warren for Senator?

President Obama over the weekend backed down on appointing Elizabeth Warren as chair of the new Consumer Finance Protection Bureau.

She would have been the most logical person to head the board, which was her idea.  She saw the financial crisis coming, and how the crisis was connected to predatory lending practices.  Predatory credit card and mortgage companies offered low interest rates to entice people to go into debt, then made up for the low interest income by large hidden penalties and fees.  This turned out to be bad for everyone.  Warren’s aim was to make financial marketing transparent, so that people know what they’re paying and so that they can compare financial products and make intelligent choices.  No reasonable person could object to that, except those who profit from the bad existing system.

From her standpoint, it may have been for the best that she didn’t get the job.  Republicans in Congress, and the Wall Street faction in the Obama administration would have done their best to thwart her, and I don’t think she would have got support from President Obama.  If not for her popularity and the need to appease public opinion, I don’t think he would have proposed her in the first place.

I would have expected President Obama to give her token support through the 2012 elections, and then for her to resign in frustration in 2013 or 2014.

Now she has a new opportunity—the chance to run for Senator from Massachusetts in 2012.  Some Massachusetts Democrats are getting up a nominating petition.  She hasn’t said what she will do.

I hope she decides to run, and I hope she wins.   She would be a voice for reason and justice in the Senate.

The clips in the video above are from “Maxed Out,” a documentary movie that came out in 2006, but what is being said is as true now as it ever was.  (The side comments about the Social Security trust fund are misleading, but the interview with Elizabeth Warren is highly enlightening.)

Below, Elizabeth Warren talks about the Consumer Finance Protection Bureau and its enemies in an interview by Rachel Maddow.

Click on Why banks fear Elizabeth Warren for a good article in the Houston Chronicle about the issues on consumer finance protection.

Click on Elizabeth Warren for Senate?  Why Obama’s Capitulation May End Up Working Out for an article by David Corn in Mother Jones on Warren’s future.

Click on Elizabeth Warren Makes It Personal for an article in The Atlantic about her personal future.

The following video is long, but it gives a good idea of Warren’s background and her ideas.

It is interesting that the three public officials who correctly saw the need to rein in financial markets before they crashed were all women—Brooksley Born, chair of the Community Futures Trading Corp. in the Clinton administration, on derivatives; Sheila Bair, chair of the Federal Deposit Insurance Corp. in the G.W. Bush administration, on subprime mortgages; and Elizabeth Warren on predatory lending.  Like Cassandra, they were all ignored by men in power.  None of them were rewarded for being right.

Click on Brooksley Born wiki for the Wikipedia biography of Brooksley Born.

Click on Sheila Bair wiki for the Wikipedia biography of Sheila Bair.

Click on Elizabeth Warren wiki for the Wikipedia biography of Elizabeth Warren.

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One Response to “Elizabeth Warren for Senator?”

  1. Keynesian Theory John Maynard Says:

    Keynesian Theory John Maynard…

    […]Elizabeth Warren for Senator? « Phil Ebersole's Blog[…]…


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