1) Make banks and financial sector smaller - either through hard 'Glass-Steagall -type' rule, Volcker Rule or much higher capital requirements. Regarding, proprietary trading, and this something Michael Lewis points out, why do we allow financial conglomerates advise their clients to buy/sell certain investments and at the same time allow them to take trading position in the opposite direction.
2) Derivatives: As Michael Collins suggests: repeal CFMA and specifically declare purely speculative OTC derivatives legally unenforceable. Here is a good article explaining this.
3) Rating agencies - prohibit rating agencies from getting paid by securities issuers.
4) Consumer Financial Protection Agency: CFPA must be independent, with it's own budget, rule-making authority and enforcement authority. Anything short of this is NOT a victory.
Bottomline: FIRE sector must be made smaller and more accountable. Some people argue that this will come at a cost and I don't disagree with that but we have incurred trillions plus a global financial crisis for allowing FIRE to run hog wild for over 20 years. Something tells me we will survive with a much smaller FIRE sector.
It's not really a coincidence that Dodd decided not to run for re-election as he began working on this bill. He knew it would be a sell-out; the plan is to take the plum job that will be handed him as he leaves office. He will be paid well for whatever loopholes installed in the bill so that it is useless.
Which leads to this question, why are we, one and a half years later, still getting watered down bills presented as reform with Senator Dodd so bad, at this point I personally will not bother to read the legislative text.
I don't want to sound CT here but looking at what is happening with Greece, plus the notorious "turn to the IMF" who seems to always love agendas which wipe out the workers, middle classes....
And please don't forget Iceland, Latvia, Ireland....
The global financial virus of concentrated ownership of credit derivatives (JPMorgan Chase, Goldman Sachs, Morgan Stanley, and bringing up the rear, Citigroup & BofA) grants awesome power, and then the misdirection and global securitization by the World Bank's IFC, which wants everything to be privatized, and is always pushing the privitization of public education everywhere.
And President Obama has appointed Simpson and Bowles to address the deficit, and the first words out of Simpson's mouth are about the privatization of those "entitlements" (Social Security, Medicare, etc.), while ignoring the biggest entitlement in America's history, the monetization of that once-private debt, which was shifted over to the public arena by all those debt-financed billionaires.
This Sunday: a vote on extending private insurance - referred to by one group of crazies as a "government takeover of the healthcare" (?????), and by another group of crazies as "healthcare reform " (??????).
It all looks like privatization to me.
And the end result? The promise of a dramatic increase of future remittances to the health insurance industry, and the pharmaceutical industry, yields a dramatic increase in the amount of leverage they wield, as well as evermore categories of credit derivates they will securitize.
In thinking about sovereign debt and CDSes plus credit rating agencies.....do the Banksters and the credit ratings agencies literally have more power than sovereign nations?
With a credit ratings downgrade they can toast an economy due to increased interest rates on the national debt. With CDSes they can cause the cost of borrowing to increase.
I don't want to sound CT here but looking at what is happening with Greece, plus the notorious "turn to the IMF" who seems to always love agendas which wipe out the workers, middle classes....
and it is like a naked short in that the purchaser does not have to own or be affiliated with the underlying bond. I also found out the CDS values are influencing the interest rate and terms of borrowing more as well as current sovereign debt, which of course would make the problem worse.
I see various articles defending this stuff and this time looking at Greece, saying it's a $9 billion vs. $400 billion ratio of CDS to bonds, but I don't know who the actual issuer is. Aka AIG issued CDSes, not the underlying issuer of the CDO or securitized whatever it was, so who actually is the issuer, I don't know that either but bottom line to me, that's just ridiculous. There is risk to invest and sometimes you lose you ass and if you want to insure something, do it the old fashioned way with a policy that can't be traded.
Ugh, these things just remind me of collapsing house of cards because while the thing should stand up by the theory...someone forgot that small breeze in the doorway in their construction and there it all goes down.
There is also the "share this" button but frankly I've had no luck with a lot of those. To me it's almost a mystery on which posts get picked up on, but the good news is I am positive we have a whole lot of intelligent readers, which means we have to be doing something right.
We need to do a follow through on what derivatives reform should look like. It has to be the most complex, maze of confusion, which is one of the reasons I don't think it is getting attention (besides the fact the Banksters are lobbbying night and day to leave it all untouched). I have to be careful on this and reference the obvious and also point out legitimate uses of them, which do actually exist (surprise).
When you have to fill out a CAPTCHA, that means you're not logged in and thus cannot track your comments, uprate posts and so on.
I don't know but assuredly a $600 trillion dollar market would have to be wound down with great care even if we could get the much needed reforms.
Now, I don't know the market size, what's going on, but a naked CDS purchase is a glorified naked short in a lot of ways, so requiring a 100% payout to god knows how many parties if say Greece defaults does seem like a sure fire way to cause a massive Economic Armageddon and wildfire contagion.
Your country is goin' down! Your nation sucks! Now pay up on the insurance I bought guaranteeing your crappy countries debt!
(where can I place this bet?) CDSes drive me nuts because they violate the mathematics in the first place and then one CDS can have an infinite number of buyers, in no way affiliated with the underlying asset.
Anywho I would imagine a ban would have a similar affect of banning naked shorts and even if there was a consequence, from the above scenario is sure sounds like something all should do fairly quickly.
Betting on national demise. 100 Quatloos on the newcomer!
This is an excellent recap of Dodd's effigy. He will go down in infamy, as he deserves to. That is funny about the 16 months.
Nice: "Right. All you have to claim is this isn't your main business and wala, you are exempt. There will assuredly be more. After all, why regulate the #1 element which brought down the globe and has us in hock past our asses? " CDS, the belle of the ball retains her crown.
They could do two things right away. Restore Glass-Steagall and repeal the Commodities Futures Modernization Act. That's what started it. I have a question for you. A week ago, the President of the European Commission said this: "In this context, the Commission will examine closely the relevance of banning purely speculative naked sales on Credit Default Swaps of sovereign debt."
What if they actually did this? What would the impact on the CDS market be? The European sovereign debt market must be a significant part of the overall CDS market (I presume, don't know).
This is an excellent recap of Dodd's effigy. He will go down in infamy, as he deserves to. That is funny about the 16 months.
Nice: "Right. All you have to claim is this isn't your main business and wala, you are exempt.
There will assuredly be more. After all, why regulate the #1 element which brought down the globe and has us in hock past our asses? "
CDS, the belle of the ball retains her crown.
They could do two things right away. Restore Glass-Steagall and repeal the Commodities Futures Modernization Act. That's what started it.
I have a question for you. A week ago, the President of the European Commission said this: "In this context, the Commission will examine closely the relevance of banning purely speculative naked sales on Credit Default Swaps of sovereign debt." http://tinyurl.com/yfe8aut
What if they actually did this? What would the impact on the CDS market be? The European sovereign debt market must be a significant part of the overall CDS market (I presume, don't know).
Same with Mussolini. Italy's trade deficit was over 5% of GDP, causing massive job losses (anyone notice where the U.S.'s is?)
the WWI economic punishment of Germany along with hyper inflation and so on, caused such despair and unrest...wala, here comes the evil high step march.
The U.S. plain lucked out in getting FDR and more often one gets some psycho dictator takeover instead when the people are getting royally screwed....usually on the promise of something completely different (Russian revolution case in point).
I guess this shouldn't surprise too many people, given the circumstances.
They turned out in their hundreds despite the snow: grizzled old men in overcoats and thick anoraks. Nearly all of them were in their late eighties and many hobbled on walking sticks. Watched by more than 1,000 blue-uniformed riot police, they brandished red-and-white Latvian national flags and barked out patriotic wartime "warrior songs" that echoed ominously through the narrow streets of Riga's old town.
The march, by some 350 surviving former members of Latvia's Nazi Waffen SS division and more than 2,000 of their supporters, looked like an act of collective octogenarian defiance. In many ways, it was.
If the world economy takes another big dip, and I expect it will before the year is out, then we should expect other fascist demonstrations.
The Latvian SS Legion was one of the last Nazi armies to surrender in WWII.
In America today there are possibly three, maybe as high as five, radio programs I would label "progressive" or truly "populist."
There are quite a large number who award themselves such labels, and they continuously come out with the most obscene, disinformation and misinformation.
One radio "promotion" I recently heard, urges the expansion of the pool from which to generate cannon fodder for the imperialistic forays overseas, from the mass murder in Iraq to whatever is occurring in Afghanistan (I could have sworn those 9/11/01 attacks "officially" involved Saudis and Kuwaitis, and to my knowledge - and I've read extensively on this subject - not a single Afghanistani.)
This falls under the category of removing that nonsensical "Don't ask, don't tell" DOD provision.
Ideally, those so-called "progressives" or "populists" will be happy when openly Gay and Lesbian types are allowed into Blackwater's torture squads and assassination squads.
Or KBR's gang-rape squads.
Nope, there is simply too much corporate control of the media in this Propaganda State. Too many foundations funnel focused money to slant too much of the so-called "news" -- and control what is allowed, or not allowed, to be written about.
Judging by that very sane, and well-thought final document and tape left by that fellow who flew his plane into that IRS facility in Austin, and that other fellow who made that frontal assault on the Pentagon -- many understand something of reality, they simply don't fully grasp who the enemy is.
A very common state of affairs in America today.
Back during the Great Depression, many understand what was economically occurring at that time, as well as who was at fault.
Perhaps today, there are simply too many points of data disbursal on the Web, and too many focused points of misinformation on the PopCultureMedia, for people to comprehend reality?
I see little hope based upon my daily conversations with most Americans.....
I appreciate the comment, but don't think it really warrants any expanded explanation (having already explained this thousands of times over the previous ten years I admit I am fully exhausted and burnt out on this avenue).
He presents significant data, as is the norm, then backs away from blaming anyone, but acknowledging that many walked away with millions and billions.
Thus, his book gets published and he receives much publicity. Jesse Ventura, for simply bringing up logical questions about an "untouchable" subject, is hit with flagrant censorship!
In the aftermath of that S&L meltdown in the '80s, which gave us the credit derivative instrument, one thousand (I repeat ONE THOUSAND) execs at various levels WENT TO JAIL.
Amazing, isn't it? That pales by significance to what has, and is still, transpiring (this economic meltdown and ensuing unemployment), yet no one has gone to jail.
(And no, Bernie Madoff wasn't really connected to it, his was just a straightforward Ponzi scheme, not that different from the typical Hollywood movie biz shelter scheme. And no, neither was Bradley Birkenfeld - recently jail for attempting to offer up tax evasion schemes of the mega-rich, nor Martha Stewart connected to this meltdown. Yet, they are, or were, jailed?)
One hundred percent corruption is no longer deserving of explanation upon explanation upon explanation. And one should always be suspicious of anyone and everyone craving those endless explanations.
People are forgetting to click on those arrows next to posts you want on the front page.
Authors, don't forget to uprate your own post if you want it front paged (that doesn't mean someone else will agree with you!)
On the weekly series posts, that's the FMN, SMC, Must reads, you really don't have to uprate those, they are series and have their own group of fans who know they will be there during certain times...
but when you see a really well done, well formatted, cited posts with lots of good information, please remember, to write these things is a lot of work and so one would think they should get a little front page time.
Being on the front page will expose the post to more people, plus it changes the site look, which is always a good thing.
Also, fortunately people use this sparingly, but in case something really horrific makes it on this site, the opposite is true on the arrows....enough down votes and a post is unpublished.
I have found not a single reference to Federal Reserve guaranteed advances other than in this single transaction.
But something has to come out about this here:
Court orders Fed to release bailout documents
financial regulatory reform is worthless:
1) Make banks and financial sector smaller - either through hard 'Glass-Steagall -type' rule, Volcker Rule or much higher capital requirements. Regarding, proprietary trading, and this something Michael Lewis points out, why do we allow financial conglomerates advise their clients to buy/sell certain investments and at the same time allow them to take trading position in the opposite direction.
2) Derivatives: As Michael Collins suggests: repeal CFMA and specifically declare purely speculative OTC derivatives legally unenforceable. Here is a good article explaining this.
3) Rating agencies - prohibit rating agencies from getting paid by securities issuers.
4) Consumer Financial Protection Agency: CFPA must be independent, with it's own budget, rule-making authority and enforcement authority. Anything short of this is NOT a victory.
Bottomline: FIRE sector must be made smaller and more accountable. Some people argue that this will come at a cost and I don't disagree with that but we have incurred trillions plus a global financial crisis for allowing FIRE to run hog wild for over 20 years. Something tells me we will survive with a much smaller FIRE sector.
RebelCapitalist.com - Financial Information for the Rest of Us.
what are we going to do about it. We are living in the Era of No Accountability.
RebelCapitalist.com - Financial Information for the Rest of Us.
It's not really a coincidence that Dodd decided not to run for re-election as he began working on this bill. He knew it would be a sell-out; the plan is to take the plum job that will be handed him as he leaves office. He will be paid well for whatever loopholes installed in the bill so that it is useless.
Thanks for your comment, much appreciated!
And the answer is at this site.
And in regard to this,
And please don't forget Iceland, Latvia, Ireland....
The global financial virus of concentrated ownership of credit derivatives (JPMorgan Chase, Goldman Sachs, Morgan Stanley, and bringing up the rear, Citigroup & BofA) grants awesome power, and then the misdirection and global securitization by the World Bank's IFC, which wants everything to be privatized, and is always pushing the privitization of public education everywhere.
And President Obama has appointed Simpson and Bowles to address the deficit, and the first words out of Simpson's mouth are about the privatization of those "entitlements" (Social Security, Medicare, etc.), while ignoring the biggest entitlement in America's history, the monetization of that once-private debt, which was shifted over to the public arena by all those debt-financed billionaires.
This Sunday: a vote on extending private insurance - referred to by one group of crazies as a "government takeover of the healthcare" (?????), and by another group of crazies as "healthcare reform " (??????).
It all looks like privatization to me.
And the end result? The promise of a dramatic increase of future remittances to the health insurance industry, and the pharmaceutical industry, yields a dramatic increase in the amount of leverage they wield, as well as evermore categories of credit derivates they will securitize.
What is the cumulative CPI for FY 2010?
In thinking about sovereign debt and CDSes plus credit rating agencies.....do the Banksters and the credit ratings agencies literally have more power than sovereign nations?
With a credit ratings downgrade they can toast an economy due to increased interest rates on the national debt. With CDSes they can cause the cost of borrowing to increase.
I don't want to sound CT here but looking at what is happening with Greece, plus the notorious "turn to the IMF" who seems to always love agendas which wipe out the workers, middle classes....
and it is like a naked short in that the purchaser does not have to own or be affiliated with the underlying bond. I also found out the CDS values are influencing the interest rate and terms of borrowing more as well as current sovereign debt, which of course would make the problem worse.
I see various articles defending this stuff and this time looking at Greece, saying it's a $9 billion vs. $400 billion ratio of CDS to bonds, but I don't know who the actual issuer is. Aka AIG issued CDSes, not the underlying issuer of the CDO or securitized whatever it was, so who actually is the issuer, I don't know that either but bottom line to me, that's just ridiculous. There is risk to invest and sometimes you lose you ass and if you want to insure something, do it the old fashioned way with a policy that can't be traded.
Ugh, these things just remind me of collapsing house of cards because while the thing should stand up by the theory...someone forgot that small breeze in the doorway in their construction and there it all goes down.
I reposted this few places. It's excellent
The Agonist DailyCensored COTO Report thepeoplesvoice.org
Thanks for the answer on CDS. It it can fail, they'll figure out a way to make it happen.
There is also the "share this" button but frankly I've had no luck with a lot of those. To me it's almost a mystery on which posts get picked up on, but the good news is I am positive we have a whole lot of intelligent readers, which means we have to be doing something right.
We need to do a follow through on what derivatives reform should look like. It has to be the most complex, maze of confusion, which is one of the reasons I don't think it is getting attention (besides the fact the Banksters are lobbbying night and day to leave it all untouched). I have to be careful on this and reference the obvious and also point out legitimate uses of them, which do actually exist (surprise).
I posted a few paragraphs of the article in the following blogs with a link to Economic Populist. Getting the word out:
DailyCensored
The Agonist
thepeoplesvoice.org
COTO Report
When you have to fill out a CAPTCHA, that means you're not logged in and thus cannot track your comments, uprate posts and so on.
I don't know but assuredly a $600 trillion dollar market would have to be wound down with great care even if we could get the much needed reforms.
Now, I don't know the market size, what's going on, but a naked CDS purchase is a glorified naked short in a lot of ways, so requiring a 100% payout to god knows how many parties if say Greece defaults does seem like a sure fire way to cause a massive Economic Armageddon and wildfire contagion.
Your country is goin' down! Your nation sucks! Now pay up on the insurance I bought guaranteeing your crappy countries debt!
(where can I place this bet?) CDSes drive me nuts because they violate the mathematics in the first place and then one CDS can have an infinite number of buyers, in no way affiliated with the underlying asset.
Anywho I would imagine a ban would have a similar affect of banning naked shorts and even if there was a consequence, from the above scenario is sure sounds like something all should do fairly quickly.
Betting on national demise. 100 Quatloos on the newcomer!
This is an excellent recap of Dodd's effigy. He will go down in infamy, as he deserves to. That is funny about the 16 months.
Nice: "Right. All you have to claim is this isn't your main business and wala, you are exempt. There will assuredly be more. After all, why regulate the #1 element which brought down the globe and has us in hock past our asses? " CDS, the belle of the ball retains her crown.
They could do two things right away. Restore Glass-Steagall and repeal the Commodities Futures Modernization Act. That's what started it. I have a question for you. A week ago, the President of the European Commission said this: "In this context, the Commission will examine closely the relevance of banning purely speculative naked sales on Credit Default Swaps of sovereign debt."
What if they actually did this? What would the impact on the CDS market be? The European sovereign debt market must be a significant part of the overall CDS market (I presume, don't know).
Could this move by Europe crash the CDS market?
This is an excellent recap of Dodd's effigy. He will go down in infamy, as he deserves to. That is funny about the 16 months.
Nice: "Right. All you have to claim is this isn't your main business and wala, you are exempt.
There will assuredly be more. After all, why regulate the #1 element which brought down the globe and has us in hock past our asses? "
CDS, the belle of the ball retains her crown.
They could do two things right away. Restore Glass-Steagall and repeal the Commodities Futures Modernization Act. That's what started it.
I have a question for you. A week ago, the President of the European Commission said this: "In this context, the Commission will examine closely the relevance of banning purely speculative naked sales on Credit Default Swaps of sovereign debt." http://tinyurl.com/yfe8aut
What if they actually did this? What would the impact on the CDS market be? The European sovereign debt market must be a significant part of the overall CDS market (I presume, don't know).
Could this move by Europe crash the CDS market?
Same with Mussolini. Italy's trade deficit was over 5% of GDP, causing massive job losses (anyone notice where the U.S.'s is?)
the WWI economic punishment of Germany along with hyper inflation and so on, caused such despair and unrest...wala, here comes the evil high step march.
The U.S. plain lucked out in getting FDR and more often one gets some psycho dictator takeover instead when the people are getting royally screwed....usually on the promise of something completely different (Russian revolution case in point).
I guess this shouldn't surprise too many people, given the circumstances.
If the world economy takes another big dip, and I expect it will before the year is out, then we should expect other fascist demonstrations.
The Latvian SS Legion was one of the last Nazi armies to surrender in WWII.
In America today there are possibly three, maybe as high as five, radio programs I would label "progressive" or truly "populist."
There are quite a large number who award themselves such labels, and they continuously come out with the most obscene, disinformation and misinformation.
One radio "promotion" I recently heard, urges the expansion of the pool from which to generate cannon fodder for the imperialistic forays overseas, from the mass murder in Iraq to whatever is occurring in Afghanistan (I could have sworn those 9/11/01 attacks "officially" involved Saudis and Kuwaitis, and to my knowledge - and I've read extensively on this subject - not a single Afghanistani.)
This falls under the category of removing that nonsensical "Don't ask, don't tell" DOD provision.
Ideally, those so-called "progressives" or "populists" will be happy when openly Gay and Lesbian types are allowed into Blackwater's torture squads and assassination squads.
Or KBR's gang-rape squads.
Nope, there is simply too much corporate control of the media in this Propaganda State. Too many foundations funnel focused money to slant too much of the so-called "news" -- and control what is allowed, or not allowed, to be written about.
Judging by that very sane, and well-thought final document and tape left by that fellow who flew his plane into that IRS facility in Austin, and that other fellow who made that frontal assault on the Pentagon -- many understand something of reality, they simply don't fully grasp who the enemy is.
A very common state of affairs in America today.
Back during the Great Depression, many understand what was economically occurring at that time, as well as who was at fault.
Perhaps today, there are simply too many points of data disbursal on the Web, and too many focused points of misinformation on the PopCultureMedia, for people to comprehend reality?
I see little hope based upon my daily conversations with most Americans.....
I appreciate the comment, but don't think it really warrants any expanded explanation (having already explained this thousands of times over the previous ten years I admit I am fully exhausted and burnt out on this avenue).
He presents significant data, as is the norm, then backs away from blaming anyone, but acknowledging that many walked away with millions and billions.
Thus, his book gets published and he receives much publicity. Jesse Ventura, for simply bringing up logical questions about an "untouchable" subject, is hit with flagrant censorship!
In the aftermath of that S&L meltdown in the '80s, which gave us the credit derivative instrument, one thousand (I repeat ONE THOUSAND) execs at various levels WENT TO JAIL.
Amazing, isn't it? That pales by significance to what has, and is still, transpiring (this economic meltdown and ensuing unemployment), yet no one has gone to jail.
(And no, Bernie Madoff wasn't really connected to it, his was just a straightforward Ponzi scheme, not that different from the typical Hollywood movie biz shelter scheme. And no, neither was Bradley Birkenfeld - recently jail for attempting to offer up tax evasion schemes of the mega-rich, nor Martha Stewart connected to this meltdown. Yet, they are, or were, jailed?)
One hundred percent corruption is no longer deserving of explanation upon explanation upon explanation. And one should always be suspicious of anyone and everyone craving those endless explanations.
It's time to begin jailing the guilty.
People are forgetting to click on those arrows next to posts you want on the front page.
Authors, don't forget to uprate your own post if you want it front paged (that doesn't mean someone else will agree with you!)
On the weekly series posts, that's the FMN, SMC, Must reads, you really don't have to uprate those, they are series and have their own group of fans who know they will be there during certain times...
but when you see a really well done, well formatted, cited posts with lots of good information, please remember, to write these things is a lot of work and so one would think they should get a little front page time.
Being on the front page will expose the post to more people, plus it changes the site look, which is always a good thing.
Also, fortunately people use this sparingly, but in case something really horrific makes it on this site, the opposite is true on the arrows....enough down votes and a post is unpublished.
Pages