DEMS AND WALL STREET….The LA Times reports:
Hillary Rodham Clinton and Barack Obama, who are running for president as economic populists, are benefiting handsomely from Wall Street donations, easily surpassing Republican John McCain in campaign contributions from the troubled financial services sector.
….Some Democrats worry that the influx of money will make their candidates less willing to call for increased regulation of financial markets, which have been in turmoil after a wave of foreclosures on sub-prime mortgages.
Will? Considering that 18 Democratic senators voted in favor of the 2005 bankruptcy bill and that virtually no one in the party was willing to push hard to end the capital gains loophole for hedge fund managers last year, I’d say that will make is in the wrong tense. For better or worse, Democrats are already largely unwilling to take on Wall Street. It’s not yet clear just what kind of economic tsunami it’s going to take to get Chuck Schumer and the rest of the money wing of the party to risk the wrath of the billionaires and take the side of common sense instead. But the evidence so far isn’t encouraging.