Yet Another Reason Obama Is a Bad Joke: Denis Hughes
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Author:
Harrison
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banking denis hughes Empire State College Harry Van Arsdale School of Labor Studies ny fed Obama Stephen Friedman Unions.jpg)
Only in America.
Let’s think this out for a moment. You run a bodyshop that repairs cars… paint, dents, glass, etc. You need to hire somebody and can’t afford to put the wrong person in the job. You have three candidates: The first candidate ran a flower shop for 10 years and knows how long it takes to get an orchid to bloom. The second person taught college for 20 years and speaks five languages. The third candidate used to work in a bodyshop before they had to move to a new city.
Which person do you hire?
If President Obama owned the bodyshop he’d pick the florist or the professor.
Huh..?
President Obama made sure that a graduate of Harry Van Arsdale School of Labor Studies at Empire State College who has had “no significant finance experience” was appointed to the Federal Reserve in New York.
That’s right… at a time of perhaps the greatest financial turmoil in this country’s economy in decades someone with no significant financial experience is named chairman of the New York Fed board of directors!
Mr. Denis M. Hughes does have the kind of experience Democrats are looking for however… he was the president of the New York State A.F.L.-C.I.O. union!
This is how the New York Times spun the appointment:
Both Mr. Hughes and Mr. Bollinger represent nonbanking interests on the New York Fed, and their being named to the organization’s top positions is notable at a time when federal regulators are accused of being too close to the banking industry they oversee.
It’s not like the guy was appointed by his uncle to run a carpet store in Texas. The New York Fed is, according to Wikipedia:
The New York Federal reserve is the largest, in terms of assets, and the most important of the twelve regional banks. Operating in the financial capital of the U.S., the New York Fed is responsible for conducting open market operations, the buying and selling of outstanding U.S. Treasury securities. Note that the responsibility for issuing new U.S. Treasury securities lies with the Bureau of the Public Debt. In 2003, Fedwire, the Federal Reserve’s system for transferring balances between it and other banks, transferred $1.8 trillion a day in funds, of which about $1.1 trillion originated in the Second District.
Hughes’ predecessor, Stephen Friedman, ran into trouble when his dual role at the NY Fed and a boardmember of Goldman Sachs seemed to have allowed him to profit from the capital injections that investment bank recieved from the US government. He resigned last May.
Doesn't Obama's photo belong here?
So one guy, Friedman, who apparently had conflicts of interst in the banking community, quit and now Obama put in someone else with conflicts of interest (“big” labor) and no significant financial experience to that job during a time of economic troubles!
According to Investor’s Business Daily:
Of greater concern is his career as a bought-and-paid-for union official and political operative. The New York Fed chairmanship is hardly a place for a person whose entire career has been spent fighting and strong-arming the very people he’ll now be regulating.
More to the point, can those on Wall Street who come before him in routine regulatory matters expect fair treatment? Will union issues become part of the New York Fed’s agenda? Will banks find requests to expand or merge stymied because unions fear a loss of jobs somewhere?
Putting this key Fed bank in the hands of a person whose experience suggests a bred-in-the-bone hostility to capitalism strikes us as bizarre at best and dangerous at worst. And it bears the unmistakable imprint of the White House. Just last week we wrote about plans to elevate former United Steelworkers adviser Ron Bloom from head of the auto task force to “industrial policy czar.”
Putting so many union people in powerful positions of economic policymaking is a recipe for disaster. Since 1955, the share of the workers belonging to unions has plunged from 33% to about 11%. Still, though increasingly unpopular, unions have helped wreck two major industries: autos and steel. Not much of a track record.
Doesn’t anybody remember the stink made when Dick Cheney invited members of the energy industry to the White House for discussions on energy policy? Oh… it was “big” oil and “big” gas coming to control things! What news has been reported about “big” labor with no significant financial experience being a member of the largest and most important banks in the country?
Oh, right, when a Democrat does it it’s okay. No wonder Germany and France are coming out of the recession while the White House warns:
The long-term deficit outlook remains daunting.
Hmmm… I see no connection between the two.
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07:45
Why not give the union guy a shot he can’t do any worse than the financial experts that drove us into this mess to start with.
07:50
Why don’t we put the winner from American Idol in there how could they do worse? Or maybe start a TV show called “American’s Next Top Banker.” We could have Madoff and Milken be the judges.
09:52
This all goes to show that sheer ideology is far more pressing to the Obama administration than “pragmatic” appointments of non-partisan and qualified individuals. This Hughes guy is a union man that will use the N.Y. Fed to influence public policy the way Obama and Progressives want it. So much for the non-partisan, level-headed leadership that the legions of O-Bots (Obama zealots) have spent so much time telling us that Obama was all about. BTW, Tim “turbo-tax” Geithner was a former N.Y. reserve bank president and the man is a tool.
vulcanhammer´s last blog ..This is why California is a mess…
09:53
I’ve been scratching my head since January. I’m not thinking I’m going to quit anytime soon either. We are in a heap of trouble.
Comedy Plus´s last blog ..Butterfly Blogger Award
13:59
Quit what?
12:24
If Obama appoints experienced financial industry types like Larry Summers and Tim Geithner, he gets criticized for not making enough reform. If he appoints somebody from outside the industry, he will also get criticized. So I guess no matter what he does, he can do nothing right.
But in this case, your comments are off base for other reasons. Denis Hughes became a member of the board of the New York Fed in 2004, under the Bush administration. Also the President does not even appoint the boards of the regional Fed branches, only the members of the Federal Reserve Board of Governors. The regional board members are appointed by the member banks or the Board of Governors.
13:58
Thanks for your comments. I did not state that President Obama appointed Denis Hughes only that he “made sure” he was the one who was elevated. He was primed for this position to made permanent back in May when the other guy left. No coincidence between “big” Labor getting such a high profile selection and Labor-loving Democrats running 2 out of 3 branches of government?
One only needs to look at the AFL-CIO NY State website to find this press release:
“Hard decisions made by Obama Administration lead to easy path for state government on extending benefit. State’s inaction means New York’s benefit level remains lowest in the region, while New Yorkers victimized by the recession continue to struggle.
“Thanks to leadership from the Obama Administration, New York State has now added an additional 13 weeks of extended unemployment insurance benefits. This means thousands of individuals who have been victimized by the current recession and were on the verge of exhausting their unemployment benefits will continue to be eligible for unemployment in the near term.
Congress and the Obama Administration’s swift and decisive action with regard to economic stimulus and unemployment benefits were intended to jump-start the economy and spur the states into action of their own. Unfortunately, Governor Paterson and the State Legislature have yet to build on the President’s initiative by enacting necessary reforms at the state level. This includes increasing the state’s embarrassingly low maximum benefit, indexing that benefit and restoring our chronically underfunded Unemployment Trust Fund to solvency.
Unfortunately, the federal government cannot do everything. Thanks to President Obama and Congress, the federal government did its part to help the unemployed. During the Great Depression it was the combined efforts of President Roosevelt and Governor Lehman that helped working New Yorkers. Now, we need our Governor and state legislature to take action themselves on the issues that only they can fix.”
http://www.nysaflcio.org/?zone=/unionactive/view_article.cfm&HomeID=127362
That’s 4 Obamas in one release!
Let’s also not forget under the Government Motors/Obama plan, “big” Labor gained a seat on GM’s Board.
And being a guy on the board of directors is very different from being the head of it all.
And let’s also know that The Federal Reserve Act says this:
“The Federal Reserve Act (section 4, paragraph 20) says that chairmen of boards overseeing regional Fed banks need to have “tested banking experience.” Mr. Hughes, who is head of the New York branch of the AFL-CIO labor union, doesn’t seem to have that kind of banking experience on his resume. He’s spent most of his professional life as an electrician and union leader.”
http://blogs.wsj.com/economics/2009/08/24/hughes-appointment-shines-light-on-century-old-rules/
I stand by my article and the facts/opinions presented in it but I do appreciate and value your opinions. I should have clarified that I felt Hughes’ appointment was a “soft” use of presidential powers.
18:17
Perhaps the contention that he can do nothing right is predicated upon reason, that he actually can’t do anything right. Obama’s selection of individuals to positions of power is dubious and without logic, unless one intends to quantify one’s position through ideological means. Within this measure he is exceedingly brilliant. If I were to deconstruct a Republic I would most definitely utilize his methodology.
theLibertyPen´s last blog ..The Failure of Social Justice part 2
19:38
I think the issue is that he does everything Left instead of everything Right!
19:18
Are you seriously suggesting that the president can’t do ANYTHING right? My point is that you lose credibility when you say every single thing the man does is wrong. It is fine if you want to criticize some of his appointments, but no one can say with any degree of credibility that every single one of his appointments is dubious, unless you just want to have a knee jerk negative reaction to every single thing the man does. What about the retention of Secretary of Defense Gates? Was that dubious and without logic? Or the re-appointment of Ben Bernanke just this past week? And even as to appointments that conservatives might disagree with as a matter of policy, I think you would have to grant that at least some of these people are well-qualified. My point is that people who want to criticize Obama would have a lot more credibility if they gave him credit once in a while.
Joe Markowitz´s last blog ..Obamaland
19:36
To be fair to myself, I have rarely written of appointments made by Obama… only Sotomayor thus far.
I don’t agree with Obama’s philosophy or his politics so it would be uncommon for me to have much to say in support although just a few days ago I did just such a thing:
“To his credit, Obama has distanced himself from such comments as Paterson (maybe he learned from the Gates Gate backlash).”
http://harrisonprice.com/2009/08/26/gov-paterson-a-blind-man-really-cant-see/
This has not been the only time though it is the only example I can readily find because it was only a few days ago. And it’s not like I am criticizing Obama for petty, insignificant things as a great many other websites do… I try and list the issue, an example, and reasons why I feel the way that I do which, to me, make sense and are logical.
So did I gain or lose credibility in this interaction?
09:20
Firstly, I have little concern over your due consideration for what quantifies as credible. Second, your enamored tendencies towards Obama has led to political myopia. Can I examine every single political appointment and infer on the basis of convincing evidence that said individuals have questionable character and intent? Yes I can. In fact, to devote full investigative measures to illustrate how dangerous Obama (and his appointees) are would require more space and time than is permitted here. But quite frankly, given your disposition that would be an exercise in futility.
The unfortunate formality of having to purvey proof after proof to those in political and ideological alignment to the Democrats and Obama is subsequently greeted with intellectual inconsistency. What shall we discuss then?
The infectious health care bill
Massive Czar appointments
Dissolution of free market principles
Cap and Trade violations
Stimulus waste
The ability of the Fed to not explain the absence of 2 trillion dollars of stimulus money (video and statements by members of the including Bernanke Fed are in Committee evidence)
Promises broken by Obama himself
The failure in utilizing Keynesian economics
I could go on and on and provide the relative material to substantiate my position, so what would your response be. I shudder to guess.
theLibertyPen´s last blog ..The Failure of Social Justice part 2
21:52
Your credibility is pretty good. My comment was mainly in response to Liberty Pen above.
Joe Markowitz´s last blog ..Obamaland
22:48
Harrison, good work in this post and in the comments.
Yes, we can pick apart any President’s appointments ’til we’re blue in the face but it just seems that this particular one’s seem to be so tone-deaf. Tim Geithner may be the most brilliant economist of our time but how does being a tax-cheat play on main street…especially when same-said cheat says he’s going after overseas accounts?
The President has made some wise choices like retaining Gates, as Joe points out, but I believe his inexperience has led him to listen to and act upon counsel that has been less than beneficial when it comes to his political appointments, overall.
(and yes, fire is still hot
)
Dean´s last blog ..Rethinking vacation destinations
07:31
Thanks for the comments I appreciate them.