Massive Fight?

Suddenly now it seems
I'm sleeping with the enemy
--Kylie Minogue

In response to recent criticisms that a proposed trade deal would reverse effects of financial regulations implemented since the 2008 credit meltdown, President Obama responded in part with this one:

"Think about the logic of that, right? The notion that I had this massive fight with Wall Street to make sure that we don't repeat what happened in 2007, 2008, and then I sign a provision that would unravel it? I'd have to be pretty stupid."

The actual 'logic' of trade deal effects, particularly this one, on regulated markets is fodder for another day. Here let's consider the president's claim that he has engaged in a 'massive fight' with Wall Street to eliminate risk of a repeat market meltdown.

The president is almost surely referring to the Dodd Frank legislation and other regulation which does nothing to eliminate the root cause of the 2008 collapse: leverage many times in excess of what would be possible in unhampered markets.

Not only has that root cause not been eliminated but policies enacted under the Obama administration have increased leverage to levels far above where they stood before the 07-08 wipeout.

Add to that a couple of additional tidbits. Like all regulation, the supposed burden of Dodd Frank et al regulation is actually a boon to established players as it raises barriers to entry against innovative entrepreneurs who would otherwise enter the industry and chop down inefficient incumbents.

Moreover, the Obama administration has supported various policies that bailed out the supposed 'enemies' that this president has warred with. Wall Street profits, salaries, and bonuses are way up. Income disparity has widened. Many of Obama's Wall Street enemies have been large campaign donors.

With enemies like this, who needs friends?