Get ready for another derivative meltdown.
Despite gridlock in Washington, a new effort to loosen Wall Street regulations and water down the 2010 Dodd Frank Act is getting bipartisan support in Congress. Republican Representatives Patrick Henry and Scott Garrett are backing the measure, as is Democratic Rep. Gwen Moore. Moore justified her support by saying the plan is only meant to relieve regulatory burdens on companies that do business with big banks. Another democrat, Representative Jim Himes, even wants to roll-back Dodd Frank, and stick taxpayers with the bill, should the derivative market implode again.
But some Democrats still understand the dangers of banks-gone-wild, and are fighting for tougher regulations to protect us all. Less than a week ago, Senator Carl Levin issued a scathing report on the devastation JP Morgan caused with risky multibillion-dollar derivative trades. Levin said, “It is incredible that less than a week after new JPMorgan Whale hearings detailed how the bank's London office piled up risk, hid losses, and dodged regulatory oversight, that some House members are again supporting the weakening of derivative safegaurds.”
It's only been five years since the banksters crashed our economy by gambling with derivatives, and the modest legislation we've enacted is meant to prevent another economic meltdown. Representative Alan Grayson, a leading voice for financial reform, criticized his colleagues for considering putting our nation at risk again. He said, “the road to hell is paved with these bills.”
We should be strengthening regulations on Wall Street, not giving banksters another free pass to gamble with our economic future. Call Congress today and tell them they must stop the next derivatives debacle before it's too late.
When criminals get away with crime they tend to repeat the crime only bigger the next time. As long as we let the top criminals in this country get away with their misdeeds we send the message to all that crime pays.
When we let politicians lie us into war with false flag attacks like The Golf of Tonkin or Pearl Harbor, they repeat the act. The stakes have risen steadily in intensity until 911. What is going to happen next. No one has been held accountable. Until justice prevails we can expect these criminals to push as hard as they can until We the People push back.
Compared to the crimes of War, these Bankers are Pikers!
New RepubliCON strategy: chip away, chip away, chip away....and hope we're not paying attention. Why do I think the two Republican Representatives cited in Tom's and Louise's report will say "bi-partisan support" over and over and over again. Look at "small funding cuts" to the Affordable Health Care Act....look at attempts to defund the CFPB (or replace a single head with a do-nothing governing board)....the list goes on and on !
Pull all your money out of the big banks and put it in small local banks. For what its worth My tip of he year. I hate banks. I am blessed being Canadian when it comes to banking. We don't do a lot things well but banking we are good at.
Hey it worked so well last time; why not do it again? What's not to like?
Agreed with Kend: The Canadian banks, with rational regulation seemed to weather the last global-crash relatively well. Other countries could do well to emulate some of that.
Does Canada have anything like Citizen's United or Buckley vs Vallejo (sp?)?
Kend: Amen to that. The citizenry could easily bring the big banks to their knees by a full-scale withdrawl of funds and a full-scale refusal to fund their downfall with taxpayer money. I prefer my local bank for everything--it was the only one giving out loans and fueling growth in my community when the stingy big ones were withholding their priate booty--ill-gotten gains--taxpayer bailout.
No. But Canada does not have fixed election dates. The party in power calls the election, within a time period and 3 months later the election is over. So big business and big unions don't have time to pour in money. Also religion is never brought up in our elections. We don't believe it has anything to do with politics.
Our public servants pretending to be members of the Democratic Party are no different than the republican ones pretending to be members of the Republican Party. All completely serve the same 1%. Isn't that just special, when it comes to the very rich and their desire for deregulation we get some bipartisan cooperation.
I agree, here we go again, privatize the capitalist profits, socialize the capitalist losses. Why won't they listen to Paul Krugman?
Get me on record too, for a matchless agreement with Kend, holy cow!
Hey, I've come down with March Madness, so got some time off from work!..... Anyone else have the infliction?
I did that before Bush was appointed President, only into a local credit union. It is so very obvious that the Koch- Teapublicans only are loyal to the Koch brothers, and none of them and the rest of the wealthy/corporations are a bit Patriot parteners to the USA.
The solution is simple...we need more banks.
Everything goies down to supply and demand. Increase the supply of banks and JP Morgan Wells Fargo B of A will start crying like little babies.
How do u do this? Simple, allow super markets to issue credit cards make home loans up to $250k car loans up to $40k and people will go to their super markets for loans.
The next financial meltdown is right around the corner so having more banks will allow us to weather the next one easier.
Banking now is much easier the big boys want u think it is difficult but it is just accounting that is all it is.
You know we could even let the US Post office do limited banking too. Solve their problem overnight!!!!!
DODD/FRANK DID NOT ADDRESS DERIVATIVE TRADING! It mostly adds paper work to small to medium local banks. Just ask the loan officer at your corner bank/branch what they think of D/F.
Hey There 4 ~ Love your messages and your little furry friends. Please keep them coming. Thanks!
akunard ~ Strange you mention Dodd/Frank. Hey There 4 suggests we focus on repealing The Futures Comodities Modernization Act signed into law by President Bill Clinton. What do you think? It wouldn't be the first time that changes made during The Clinton Administration are responsible for doing serious damage to our country. She/He/It/? says we need to reinstate bank regulation from the FDR era. Makes sense to me. What say you?
By the way, it is quite disturbing when a regular on this blog disappears without a trace or an announcement. I don't know if anyone else has noticed but Palindromedary, Ken Ware and David Abbot have simply disappeared without an announcement or trace. The disturbing part is that Palindromedary had just pulled his Avatar with a brief explanation of concerns about legal Daemons hounding him. Ken Ware just completed a series of anti-government rants and complained about feeling sick. I hate to admit loosing sleep wondering about the well being of Ken Ware; but, it is what it is.
So, Palindromedary, Ken Ware, David Abbot, if you're out there and just busy and read this could you kindly send out a shout of:
I'm fine, just busy!
That would be more than enough to sway any unnecessary apprehension on our part. Feel free to just cut and past it if you're that busy. In the future, please have the courtesy to announce a departure--like AliceInWonderland did. It would be greatly appreciated. Thanks!
Kend ~ I took the time to research Corporate tax rates in the US. True it has been the highest in the world--up to 2011. Before it was 35%; but in 2011 it was lowered to 12%. Since individual income tax below $50k is at a rate of 15% do you really think it is fair to tax an individual earning less than $50k at a higher rate than you tax a Corporation?
Dispite the facts--from a Business Man's perspective--if you include the hassle and cost of business regulations as tax than you may have a good point. Moreover, if you consider worker benefits such as health insurance a tax I would certainly agree as well. The government in Canada, as well as many other more progressive and successful countries have relieved the burden of health care from the payrolls of the workers in their countries. This has the net affect of lowering payroll as well as raising wages. Raising wages has the net effect of raising demand and increasing profits. The system is a win win for everyone involved.
I have very mixed feelings about regulations. Anyone who is wondering what we are talking about who knows little about business management can get a taste of regulations by walking into any business in the US. Licenses, and Permits for conducting business by law have to be placed in an area for public viewing. Usually a large bulletin board, or more likely a glass case. (They cost a fortune so companies usually like to protect their investment.) One glance to the uninitiated will shock you. Considering the red tape and "hoops" business owners have to jump through in this country to conduct business it is amazing there are any businesses.
All I can say is after returning from Mexico, a country with hardly any regulations, I couldn't wait to get back to the US. Regulations protect not only the company and employees, but customers and the public as well. They are a tremendous burden to the company, but a necessary evil. I can only suggest they be consolodated in order to reduce the burden of diverse costs and wasted time.
As far as lowering Corporate tax below 12%, no way. IMNSHO, if you are going to tax the income of the poorest workers in this country at 15%, Corporations should be taxed at a rate no less than twice that at 30% minimum. If you want to save them money, do it the way they do in Canada--Single Payer Government Sponsered Medicare for All. That is the main insentive for seeking workers in Mexico, China, Hong Kong, and anywhere else Corporations flee. It is not the result of taxation or unions--it is the result of Govenment not doing it's job.
CFTC and SEC don't have a lot of teeth and mostly bite the little guy. The best minds in both seem to end up working for Goldman. When Goldman was caught front running a small fine and told don't do that again. The talking heads always saying what great traders Goldman has, never a loosing week. No trading desk is that good! After the flash crash some trades got busted others not! Neither agency has a clue what went on. That was just a test. Goldman only firm payed 100 cents on the $ from AIG. Sec of Treas, Hank P. pulled that one off. Where did he work prior?
NO BANKING REGULATION WILL EVER BE WRITTEN THAT WILL HURT---- TAKE A GUESS.
akunard ~ Thanks for the insight. You are probably right--depressing as it is.
Time to take a walk, smell some flowers, and enjoy the beautiful weather. Have a good one!
DAnneMarc: The rumors of my demise are greatly exaggerated! Still kicking, just took a break and needed to spend more time learnin' stuff. I have pretty much kept up with scanning what you all have written since I "disappeared". Thanks for your concern. It is nice to be missed. But I found I was spending way too much time writin' stuff when I needed to be readin' stuff. Besides, taking adversarial positions are stressful at times and one needs a break...AIW had the right idea. Some people can be downright scarey and it is best just to avoid them. I'm glad you got back from down south ok.
The Banks have it all set up now -- where they can take risks and if they WIN, they get to keep the money, and if they LOSE, the people have to pay their losses (bail them out).
In other words, the Banksters and their Republican and Democratic and Government Bureucratic BAGMEN have created a perfect scam.
Until We The People rise up and eradicate their theft scam and paralyze these predators, we are doomed to be their victims. STOP THE SCAMMING BANKSTERS!
DAnneMarc, I disappeared because the government put me in Guantanimo. But when they found out that I like waterboarding and am entertained by electric shocks and kept asking them to up the voltage while singing the national anthem, they got freaked out and let me go.
Don't worry, I'm fine. I simply need to take a break from politics from time to time, to remind myself that the sun is shining.
They just never get it, do they? The banksters do, though.