Article Source: msnbc.com
from:msnbc.comTreasury Secretary Timothy Geithner will announce a plan on Wednesday to strengthen federal regulations governing risky financial instruments that helped bring down AIG.
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Isn't Geithner clamping down on dirivatives a lot like congess clamping down on spending? He was the problem. He helped create the problem, he profited from the problem, he has been married to the problem and now he's the one to fix it and take that profit source away from his long time cronies on Wall Street? Don't hold your breath. This is going to be the biggest financial smoke and mirrors act you have ever seen.
I just love how the goverment constantly blames the banking industry for everything. It was not just the banking system.
It was the PRIVATELY owned Federal Reserve that started the greed by lowering interest rates to feed the greed.
Talk to Greenspan, why hasn't anybody heard from him? Because he has the facts on the issues.
AUDIT the PRIVATELY owned Federal Reserve.
The Federal Reserve is facilitating the buyout of the entire banking industry. The small banks will just plain die out or forced into the fold of the central banking system.
This is how you control the world and make your new world order.
Nothing will be bought or sold without the mark of the beast.
As per usual. Just get that AIG stock back to $40 and I will be happy.
what a friggin JOKE......
this is about 2 years too late, and if they really wanted to improve the economy the stimulus money should have gone to the citizens not the same criminals that blew up the financial world......
Geithner and his coreligionists are the architects of the GLOBAL financial depression.
So let me get this straight. None of you think derivatives should be regulated? I know you hate Geithner. I get it. What about derivatives? You know, the subject of the article.
The sooner the people realize they have elected a hard-line socialist president, the sooner we will be able to bring ourselves out of this national nightmare. See triple w dot cafepress dot com slash endthestate for some educational material.
Treasury may tighten grip on risky derivatives
What the %#*^ do they mean by "MAY" There should be NO may about it!! Do it. This is a major reason we are in the mess we are in. Vote aginst all incumbents next election!!!!!
WOW ! Only now ??? Can you believe it took so long ???
I grow tired of the passive whistle blowing posturing of our present administration. Threatening to monitor a practice that should now be outlawed in U.S. Stock and commodity markets is simply puffing. Either we do it, or we don't do it.
The letter writing campaign of the U.S. treasury is inefective.
The Federal government as well as its financial safe guard dog , is being held captive by the Private financial sector.
The more you owe the Government, The more power you have in influencing the severity of the slap on the hand. Pitiful at best Tim.
Will this administration please wake up and give the Citizens of the USA something to believe in! Let's start by talking about a balanced budget ammendment and stop the insane budget deficits that are continuing to fuel the lack of confidence in our economy. Please give us some sign you elected officials care about us and our children. Please!
YES, finally we are getting into areas for trading accountability. There should be safeguards built into the proposal much like ones built into stocks.
All you chimps screaming socialism, GREAT. I am glad, because it is finally time that you and your party be held accountable for your contributors actions. Anyone who wants to be a wizard, are now warned that they may be exposed.
NOW they actually mention the term "derivitives."
LOL. Too little too late.
derivatives 101. I'll sell you a piece of paper for a million bucks, you sell it to the next guy for 2 million, he sells it to the next guy for 4 million.
While this crap is on the books we can loot the bank of it's real assets......
when the contract becomes worthless we just get the government to give us taxpayer money....... after all i do have pictures of senator such and such didling little boys .....
That's how the world works!
These criminals are not stupid or incompetent, they are quite smart and very EVIL.....
The New World order homosexual satanic crowd, wants to bring America down and they are doing it.
hey timmy boy see if you can track your tainted and false tax returns for the past 10 years you crook you should be in jail not running anything in the government however when you have a fool whose only real job was community organizer i guess you really stand out with those types.
Get rid of the Gramm-Leach-Bliley Act, November 12, 1999. Put the The Glass-Steagall Acts, 16 June 1933 back in place with the Glass Steagall Acts preventing another 1907 Depression and 1929-1939 Great Depression. This would also make illegal the International Swaps and Derivatives Assocation Incorporated (Incorporated at Delaware a major Campaign Contributor and Constituent of VP Biden).
See isda.org for the members and see why this turned into the 60-100 Trillion USD "Global Economic Crisis".
Make the Bipartisan Campaign Act manditory, not optional. So that elections cannot be bought, see list (November 2005) below as to major campaign contributors (recognized now as the Bailout Babies):
(november 2005 list) Delaware: Freddie Mac, Fanny Mae, Bank of America, Wilmington Trust, First USA / Bank One / JPMorgan Chase, AIG, Citigroup, Deutsche Bank, Barclays plc, GM, Chrysler, Wachovia, ExxonMobil, Chevron, ISDA, and those States with Corporations Incorporated at Delaware.
Especially, ISDA. The People that brought you: the 60 to 100 Trillion USD (it is not 700 Billion USD US Economic Crisis) Global Economic Crisis. These people will be back for more just like GM, Chysler, September 2008, 25 Billion, 1970s, 1980s, 1990s, 2000s, to milk the cash cow. updated add: AIG, Billions USD. The 60 to 100 Trillion USD does not include the usary interest protected by the Delaware Court of Chancery.
Over 50% of US publicly-traded corporations and 60% of the Fortune 500 companies are incorporated in Delaware;the state's attractiveness as a corporate haven is largely due to its business-friendly corporation law. Franchise taxes on Delaware corporations supply about one-fifth of its state revenue.
(previously posted) Also you think your "popular" vote means something? You are sadly mistaken. Example: President Bush and Florida chit thing. The Electorial College has already sold out their votes.
(previously posted) Who did the Majority of Electorial Colleges already sell out their souls to? The person that claims to have bailed out NY, NJ, CT, DE, PA, NC, MI, FL, IL, and other States with Corporations incorporated at Delaware. Soon the Electorial Colleges will declare the President and Vice President no matter who you vote for. Look it up for yourself if you do really believe what you say is true. Pull out your heart medicine, or high blood pressure medicine, maybe drugs, so that when you find out the truth, you will need them.
As previously reported by Donors, Bailouts & Politics CBS Evening News Dec 10, 2008
http://www.cbsnews.com/video/watch/?id=4661792n
Eliminate the Electoral Colleges. Specific locations that directly benefitted by Bailouts (TARP) for their Electoral College Votes:
http://realestate.msn.com/Buying/Article_busweek.aspx?cp-documentid=10856357>1=35000
http://realestate.msn.com/slideshow.aspx?cp-documentid=10857148
Eliminate the Federal Reserve or place them directly under control of the US Treasury and accountable to the US Citizens.
Term limits on Congressional Representatives. And direct voting, (telephone or internet) similar to American Idol, based on Social Security Number and pin number, this is to eliminate the possiblity of Illegal Immirgrants with forged (fake) identification from voting. Eventually this will enable the complete elimination of "Representatives". Before someone says hackers, this will be fought by the US Intelligence Agencies as a matter of "National Security".
Close the Southern Border, use the US Military from Iraq (to prevent massive Unemployment). This can be done due to the changes in US Codes (Laws) and the Operational Control would be US NORTHCOM. This can be seen as successful as like what Mexico has inplace on their Southern Border, "shoot to kill". As a matter of U.S. "National Security".
Supreme Court Ruling that the 14th Amendment applies to former Slaves (brought to the US unwillingly), not "anchor babies" (came to US to circumvent the Law).
Note all of these have something to do with the US Economy directly and indirectly (what you do not see).
DEMAND not ASK for CHANGE:
president@whitehouse.gov
http://www.whitehouse.gov/contact/
http://www.visi.com/juan/congress/
After our corporate/government has ripped-off the last dollar from the American people....they propose to actually trade these securities in the light and on an exchange that tracks the sale of derivitives. Someone still needs to explain to me why it took our corporate/government so long to stop destroying our economy.....but what ever the reason.... the American people got rolled and want restitution.
Add to post # 1.16
True, about reinstating Glass-Steagall Acts. However, there is not legislations, rules, backup plans on the securities market. We have it on the banking industry only (through past depression, recessions, junk bonds, bank failures...). We simply did not have enough experience on securities side. Look at the computer trading system that were being overwhelmed in the earlier years. We learn from that. Yah, many traders were soaked, but we did learn!!
This is no different. These guys will find new loopholes, and in the meantime we're going to fix whatever loophole is open.
Here's a idea....a Obama credit card! Yes, backed by the federal government, everyone is qualified...it has a million dollar credit limit, and if you don'tpay your monthly balance and fee, Obama pays it!!! Yes, stimulates buying, and the government backs up the credit line! Yes that's it!!! After all he did promise during his campaign to pay your house payments, your car payments and make credit available for everyone...mostly the poor and those that don't have good credit, but heck, everyone will qualify for their card! Apply today at the US Treasury....I mean Obama wants to take over Chrysler motors, he's already told them they are spending too much for advertising...hey, just issue credit cards!!!!
"Key elements of that robust regulatory regime must include conservative capital requirements"
That's the key. If the traders are required to have sufficient capital to cover losses, it will stop the speculation and bring common sense back into the market.
Derivatives, credit swaps,hedge fund markets, led to the Banking collapse of 1907, They were illegal in the U.S. until 1999, when Clinton ,the boy wonder, with Greenspan backing and stupid congress allowed them back into the banking system. This entire collapse was and is caused by the greed of the financial gurus, and a very stupid congress.
Even if they do it won't work. They'll create a special department that will cost millions to fund and will be designed in such a way that it won't work and it will hide the mischief these derivatives traders get into. Like someone else said "smoke and mirrors", they got that right. That's what our government has become. And if it somehow does work it won't take these characters long to invent a new way to get around it.
"He (Geithner) also wants to ensure that financial firms selling the instruments have enough capital on hand in case they default and subject them to stringent standards of conduct and new reporting requirements."
Another means to take control of financial institutions by the FEDERAL RESERVE. Sec Geithner could better use his time and energy in a complete audit and elimination of the FEDERAL RESERVE.
But figure the odds of someone like Geithner, who worked for and is a puppet now, to do these two things.
REV G: The Federal Reserve is facilitating the buyout of the entire banking industry. The small banks will just plain die out or forced into the fold of the central banking system.
This isn't a buy out. It's a loan to cover bad debt on actual property that exists. In short, a lien on a foreclosed home. It's not a gift but a lien on actual real estate. We the taxpayers may end up owning it. One has to decide for oneself if government should be in the business of doing this. My philosophy says, "No way." It would have meant a very, very painful collapse, however, with unemployment suddenly rising to around 15% or more; but it would have also been shorter and cleaned these risky mortgages out of the system faster. As it is, the stimulus is designed to try and temper the pain; it'll take longer and there's no assurance that it will work. If it does, most of the money will be re-paid when that actual property is sold in a recovered market, the loans repaid and tax revenues offset the remaining deficit. If it doesn't work, we probably should all bend over and kiss our asses goodbye. But it's the course of action that's been chosen. That's why they call it risk. We'll know more later in the year.
David -
Excellent post about Glass-Steagall and many other issues! I personally do not much care about "closing the border". To me, that is more of a distraction (like abortion and evolution) than a key, fundamental issue.
But I certainly agree with and applaud the rest of your proposals!
I couldn't tell the difference between a CDO and an MMO but I believe the only reason these things worked is because it was all insider markets.
The smart guys built them to be secret and leveraged them to be secret and then secretly hid all their risk while taking all the secret profits. They knew they couldn't sell these in the open if anyone knew what they really consisted of and how much they were leveraged. They got all the inside players (regulators and raters) to wink-wink as long as they could get in on the game.
Hey, you can be as greedy as you want and make a bazillion dollars but you don't get to do it by running a trillion dollar find the peanut under the cup scam.
This may not be but a start, but just cracking the door on this dank closet is better than nothing.
I hope everyone asks themselves, did I use my vote last election to change the congress or did I vote for the incumbent, self-serving politician, be it a Republican or Democrat , who has become entrenched in office. How is it that congress had a 12% approval rating yet 96% were reelected? The "my congressman is ok, it's all the others that are the problem" syndrome was, as always, in play. These politicians need to loose there job! They are responsible for the state of this country. The American people have gotten the Government that they deserve. Next election, vote against all incumbents, or look in the mirror to see the real problem.
Ahhh we have our usual third party people our I hate the present admin the I hate the treasury secretary and the I hate everybody posts taking up space and a couple of well informed people who may be over looked because they are sticking to the seed line. That is regulation of the derivitives called credit default swaps which are a tool to circumvent insurance regulations that require insurance companies to have on habd at all times capital to back up the insurance they issue. We can thank for this a nasty little piece of legislation that was craftily inserted into an omnibus spending bill that kept the country running as Clinton left office. Clinton signed the bill but it was Phil Graham who pushed this trough. You know Phil he was McCains financial advisor. The same guy who said we were a nation of whiners etc.
Well this little piece of chit almost killed the financial market worldwide. It said in effect you could offer insurance with no Capital as long as you were not an insurance business. Thats why people like AIG one of the worlds largest insurance companies has a seperate division for this thing.
pgcl -
I believe the reason Congress keeps getting reelected is due to the seniority system, where your state gets more goodies based on how long your congressmen have been in office, and what chairmanships they hold.
That is why, as David posts above, term limits are a critical aspect of getting this under control! I generally vote Democrat, but I have to say that Ted Kennedy has been in the Senate way too long, and it is because he can deliver goodies! Only one example. McCain is another.
Talk about putting the cart before the horse. Why wasn't this the first order of business prior to sending these folks billions in bail out dollars, gratis the U.S. taxpayer?
I think we were looking for "Locking the Barn after all the animals have escaped".
Yes, this C--P should have been addressed a long time ago. Certainly before any Bailout money was given out !!!!!
Exactly Brad and I might add they should have investigated why all the regulations that were in place were removed by Congress. Then they should publish a list of all the members of congress and Senate that voted to remove all of the regulations and remove them for incompetence. It would be massive on both sides of the isle.
These instruments of investment (which no one really understands) should have been outlawed with the first legislation on the bailout. Clamping down is no way to fix the problem, but total elimination is.
Exactly! Horse escapes, barn door is closed. Same o Same o.
I love to listen to these pukes and their BIG PICTURE crap. Roman scum.
Well it seems to be a matter of letting all the big players get away with their crimes and profits first, and then we'll come in a stabilize things and make sure it doesn't happen again (or so we're supposed to believe).
Of course people knew that the bubble wouldn't last forever, that necessary regulations had been removed, that AIG had been allowed to choose it's own regulators, they were way over-leveraged, etc, but there's no way the top dogs weren't going to get their payoff. I wish i could remember the Congressman's name from N. or S. Dakota who warned off all this about 10 years ago.
Yes d burger, there should be consequences on both sides of the isle, and for the financial elites.
nothing more than closing the barn door after all the cows have gone to slaughter
The question is - the derivatives have "been around" for awhile why is it such a big deal now???
there were multiple derivatives being written on a single asset. Basically writing multiple insurance policies on a single asset.
Someone in an earlier posting mentioned as many as 20 being written on a single asset and each one for it full value. One H--L of a scheme. (Starts to make Madoff look like a wimp, when it comes to ponzi or con games!)
It is also a big deal because there were regulations stopping most financial organizations from trading in these products. But over the past 15 years all of the regulations have been removed by congress and they were left to do all this damage. So it took a few years and blew up just like it did the the 1930's. Congress took donations from Wall Street and they voted in Wall Streets favor. Republicans and Democrats are both guilty! They sold the American people out for campaign donations.
There had been proposals to regulate these in the late 1990's but Robert Rubin (who was an architect in these instruments) and Greenspan blocked them. I guess no one really pushed it because the market was doing so well and who's to do anything to stop people from making money. As usual with our govt., however, instead of trying to be risk-aversive and avoid problems, they take action when the damage has been done.
As long as this is just the start to eliminate or control all of the shenanigans used by the insiders of Wall Street et al.
I realize that it should have been in place before the meltdown. I can't turn time back, can you ? Hopefully any future changes to market procedures should be reviewed by the appropriate government agency(s) and approved by them, prior to the implementation of said proposed changes.
That's why they call it "investing" and not "making money".
I say keep Bernanke and Geithner. I'm sure that dumber people can and would be found.
Excellent plan! While we're at it, why not save money in the prison system by enabling the prisoners to guard themselves?
I keep searching for the light at the end of the tunnel but this latest crop of morons don't seem to have a clue about anything.
We "may do this" or "may do that"......wishy washie politics......why not just stand out side the pollsters and call it a day, they tell you what "plays" and you create policy accordingly.
Not a single leader in DC, period.
The banking system IS at fault. This isn't debatable. And the banks own the Congress or at least, have owned the Congress. So, expect the Bank outcry to be loud and vociferous because they don't want anyone to tell them what to do. But their malfeasance has threaten Capitalism, and they clearly need a watch-dog with bite. And they'll get over it and move forward.
Meanwhile they'll drive the Markets down to make their point. So Be It!
BTW, if you have money, spend it wisely, but spend it!
David---Would this be a good time to pull everything out of the stock market? Invest in real estate? Just curious.
David you are wrong the bankers are corrupt scoundrels but the fault lies with Congress. The bankers do not have a vote only Congress. The bankers can donate all the money they want but we elected the Congress to look out for the best interest of our nation and they sold their votes. Congress is to blame. The bankers should be in jail!
A number of years ago, the central bank of the United States, the Federal Reserve, produced a document entitled "Modern Money Mechanics". This publication detailed the institutionalized practice of money creation, as utilized by the Federal Reserve and the web of global commercial banks it supports. On the opening page, the document states its objective: "The Purpose of this booklet is to describe the basic process of money creation in a fractional reserve banking system". It then proceeds to describe this 'fractional reserve process' through various banking terminology. A translation of which goes something like this: The United States Government decides it needs some money, so it calls up the Federal Reserve, and requests, say, 10 billion dollars". The fed replies, saying " sure… we'll buy 10 billion in government bonds from you." So, the government then takes some piece of paper, paints some official looking designs on them, and calls them 'Treasury Bonds'. Then, it puts a value on these Bonds to the sum of 10 billion dollars, and sends them over to the Fed. In turn, the people at the Fed draw up a bunch of impressive pieces of paper themselves, only this time calling them 'Federal Reserve Notes'…also designating a value of 10 billion dollars to the set. The Fed then takes these notes and trades them for the Bonds. Once this exchange is complete, the government then takes the 10 billion in Federal Reserve Notes and deposits it into a bank account… and upon this deposit, the paper notes officially become 'legal tender' money, adding 10 billion to the US money supply. And there it is… 10 billion in new money has been created. Of course, this example is a generalization, for, in reality, this transaction would occur electronically, with no paper used at all. In fact only 3% of the US money supply exists in physical currency. The other 97% essentially exists in computers alone. Now, Government bonds are, by design, instruments of Debt and when the Fed purchases these bonds, with money it created essentially out of thin air, the government is actually promising to pay back that money to the Fed. In other words… The money was created out of debt. This mind numbing paradox of how money, or value, can be created out of debt, or a liability, will become more clear as we further this exercise. So, the exchange has been made and now 10 billion dollars sits in a commercial bank account. Here is where it gets really interesting, for as based on the Fractional Reserve practice, that 10 billion dollar deposit instantly becomes part of the bank's Reserves, just as all deposits do. And regarding reserve requirements, as stated in Modern money mechanics: A bank must maintain legally required reserves, equal to a prescribed percentage of its deposits. It then quantifies this by stating: under current regulations, the reserve requirement against most transaction accounts is 10%." This means that with a ten billion dollar deposit, 10% or 1 billion is held as the required reserve, while the other 9 billion is considered an excessive reserve and can be used as the basis for new loans. Now, it is logical to assume that this 9 billion is literally coming out of the existing 10 billion dollars deposit. However, this is actually not the case. What really happens is that the 9 billion is simply created out of thin air, on top of the existing 10 billion dollar deposit. This is how the money supply is expanded. As stated in Modern Money Mechanics: " of course, they (the banks) do not really pay out loans from the money they receive as deposits. If they did this, no additional money would be created.
What they do when they make loans is to accept promissory notes (loan contracts) in exchange for credits (money) to the borrower's transaction accounts."
In other words, the 9 billion can be created out of nothing, simply because there is a demand for such a loan, and there is a 10 billion dollars deposit to satisfy the reserve requirements. Now, let's assume that somebody walks into this bank and borrows the available 9 billion dollars. They will then most likely take that money and deposit it into their own bank account. The process then repeats, for that deposit becomes part of the banks reserves, 10% is isolated and in turn 90% of the 9 billion or 8.1 billion is now available as newly created money for more loans. And, of course, that 8.1 can be loaned out and redeposited creating an additional 7.2 billion…to 6.5 billion..
to 5.9 billion etc. This deposit-money creation-loan cycle can technically go on to infinity… the average mathematical result is that about 90 billion dollars can be created on top of the original 10 billion. In other words, for every deposit that ever occurs in the banking system, about 9 times that amount can be created out of thin air. So that we understand how money is created by this fractional reserve banking system, a logical, yet elusive question might come to mind:
What is actually giving this newly created money value? The answer: The money that already exists. The new money essentially steals value from the existing money supply… for the total pool of money is being increased, irrespective to demand for goods and services, and, as supply and demand finds equilibrium- prices rise, diminishing the purchasing power of each individual dollar. This is generally referred to as 'inflation' and inflation is essentially a hidden tax on the public.
(Ron Paul) : "…what is the advice that you generally get, and that is inflate the currency. They don`t say debase the currency, they don`t say devalue the currency, they don`t say cheat the people with savings, they say lower the interest rates. The real deception is when we distort the value of money, when we create money out of thin air, we have no savings yet there`s so called capitol…so my question boils down to this-how in the world can we expect to solve the problems of inflation--that is the increase in the supply of money-- with more inflation? " Of course, it can't. The Fractional Reserve System of monetary expansion is inherently inflationary. For the act of expanding the money supply without there being a proportional expand of good and services in the economy, will always debase a currency.. In fact a quick glance at the historical values of the US dollars Vs the money supply, Reflects this point definitively, for the inverse relationship is obvious. In fact, One dollar in 1913 required 21.60 cents in 2007, to match value…that is a 96% devaluation since the Federal reserve has come into existence. Now, if this realty of inherent and perpetual inflation seems absurd and economically self-defeating… hold that thought, for absurdity is an understatement in regard to how our financial
system really operates. For in our financial system money is debt and debt is money. Here is a chart of the US money supply from 1950 to 2006. Here is a chart of the US national debt for the same period. How interesting it is that the trends are nearly identical… for the more money there is, the more debt there is… the more debt there is, the more money there is. To put it a different way, every single dollar in your wallet is owed to somebody by somebody; for remember, the only way the money can come into existence is from loans. Therefore, if everyone in the country were able to pay off all debts, including the government, there would not be one dollar in
circulation. (If there were no debts in our money system, there wouldn`t be any money"
-Marriner Eccles-Governor of the Federal Reserve September 30th, 1941 -House Committee Hearing on Banking and Currency )
In fact, the last time in American history the national debt was completely paid off was in 1835, after President Andrew Jackson shutdown the Central Bank that preceded the Federal Reserve. In fact Jackson's entire political platform essentially revolved around his commitment to shut down the Central Bank, stating at one point: " the bold efforts the present bank has made to control the government are but premonitions of the fate that awaits the American people should they be deluded into a perpetuation of this institution or the establishment of another like it." Unfortunately his message was short lived, and the international bankers succeeded to install another central bank in 1913…The Federal Reserve. And as long as this institution exists, perpetual debt is guaranteed.
I love how people bash politicians and think that politicians act on their own. Somewhere around 80% of all politicians are owned by powerful elites. These elites are rich and powerful and continue their quest of globalization.
I also love how this whole world wide financial meltdown is spun by a controlled corporate media so the average American is to believe that it's all about US mortgage defaults. Folks, don't buy this line of BS, this crisis is a corrupt GREED scam orchestrated by the elites. Educate yourselves on securitization, computational finance, speculation and shadow banking. PH.D invented financial disasters amounted to over $500 TRILLION dollars world wide, most of which is worthless and needs to be written off of balance sheets. Without mass amounts of money pumped into the system, world economies would be deflating, unemployment would go to around 60-75% and civil wars would breakout around the world. The power brokers screwed up, they believed in securitization without end, it failed. Alan Greenspan, just one of the SOB's that caused this mess recently stated that the current global credit crisis cannot be blamed on mortgages being issued to households with poor credit, but rather on the securitization of such mortgages. In his old age I guess he finally feels remorse. We will rise out to this mess but only after massive pain and a global reset by the elites.
we the people are the system! pump the money into us and watch the economy turn around over night
This I have to see happen......lots of loot going to be looked at and everyone knows they DON'T WANT ANYONE TO SEE WHAT THEY ARE DOING, it will never happen or if it does it will be loop holded to hell or watered down so it means nothing. I am losing my home for no reason of my own but because of what the "suits" in those industrys did to this country for their own gain. I would like to see them all "swing " until they rot. I get a kick out of them tripping all over themselves now to repay the money so they are not regulated .
These instruments are not much more complicated than your insurance company buying insurance on their insurance. Your home insurance company is probably no more than 25% capitalized. They are insured for the rest.
So if your insurance company gets huge losses they look to their insurer.
Now comes AIG. The huge losses started from the welfare pass through program set up by Clinton after Acorn sued the US with Obama as their Lawyer. The carriers were Fannie and Freddie. Now comes Obama claiming he will stop the atrocities when he was instrumental in starting this mess.
Don't you guys get it. First the stimulus to pay back all the money lost by the rich dems and repubs in office and to guarantee their retirement. Then the friends of theirs who lost money. To hell with you and I. Now that they have fixed their money problem they will regulate the industry to make sure this does not happen to them again. It has nothing to do with you or I. They have made thier money off of these crooked schemes and now will close them down. You all can't be that stupid to actually believe this is for your protection. Obama and friends created this mess. And not one of you will even start a recall petition against them.
President Obama couldn't please you with anything he does. Why do you even get on these blogs.
This is the first time I have seen something good come out of this administration. Anything traded under the table has the potential to make someONE rich, while the rest of us pay for it.
Now if President Obama would lower taxes to zero for a couple of years and stop the Washington Spending spree, we would have the economy going again in a few months.
Is this the same government that sent out thousands of Stimulus checks to dead people? They have certainly proven themselves to be on top of things....Horse S..t
Carol Ann, GWB could have started some oversight and he is the first to send the stimulous checks.
Get off President Obama's back.
Can not work at all...I am in the business...must trades are done by major players to anyone that walk up to the bar with no reporting at ll to SEC or Treasury...i.e. Shell, BP, etc.....if you Joe Blow want to do a trade call them directly...they may make you post a letter of credit but they will not....Fact....how stupid is the Obama Administration anyway?
What do you mean "might?", this crap should have never been on the market in the first place.
Just exactly what is a derivative? Does anyone really know? What is the product?
.
finance financial product: a tradable financial product whose value depends on the value of some other asset or combination of assets
Brad Melton
Talk about putting the cart before the horse. Why wasn't this the first order of business prior to sending these folks billions in bail out dollars, gratis the U.S. taxpayer?
d burger
Exactly Brad and I might add they should have investigated why all the regulations that were in place were removed by Congress. Then they should publish a list of all the members of congress and Senate that voted to remove all of the regulations and remove them for incompetence. It would be massive on both sides of the isle.
The repeal of Glass-Steagil started it; this was enacted in '33 to essentially keep the banks out of risky investment ventures and to require a formula that a certain percentager of capital be on hand to cover any risky loans.
Beyond that, Mr. Buffett and two states attorneys general warned about these derivatives as early as '05. But, hell, the money was flowing and who wanted to ruin a good thing
If the largest spender of our tax dollars - and I'm not talking about our military - is loaning money with no public scrutiny by either ourselves or our elected officials, then a standard is already set at the top for lack of accountability. The Fed has loaned an estimated $1-$2 trillion dollars to banks whose names the taxpayers don't even know.
I'm gonna use this as an opportunity to soap box about the institution that controls our money supply. One has to ask if it is in such disarray that it sets the standard for ineptitude, waste, fraud and abuse? Otherwise, why such secrecy surrounding its activities? These two video links aren't some fringe propaganda blurbs talking of conspiracy and New World Order. They're taken directly from House and Senate proceedings. The first is a clip of a Florida Congressman questioning a Federal Reserve Inspector General. The second is video of a Vermont Senator questioning Mr. Bernanke himself recently. Both should be required viewing:
http://therealnews.com/t/index.php?option=com_seyret&Itemid=91&task=videodirectlink&id=1389
http://www.youtube.com/watch?v=kyl8c91qPbw
Subsequent to these sessions, legislation was introduced in both the House and Senate called the Federal Reserve Transparency Act 2009. The bill is currently in committee. It is time that this institution came under a little more scrutiny, especially since it has loaned nearly $2 trillion of taxpayer money to banks whose names it will not even disclose. The legislation will provide for that as well as a thorough audit of the Fed.
If companies play with RISK.... Then IF they do stupid things; they should FAIL. The Gov should not control or BAIL THEM OUT. They take the RISK they live by the RISK. Who decided Geitner and Hussein Obama should CONTROL people that are stupid and take undue risks; and then BAIL THEM OUT if they FAIL. They have the right to fail; they did stupid things, and deserve to FAIL w/o any bailout. Taxpayers did not take stupid people to raise. Stupid is as stupid does.....
I wish I knew enough to understand how these crooks are going to use this piece of legislation to rob more money from hard working Americans. Surely they have no intention of doing us any good. But, the article seems to point to these scum trying to do the right thing.
Oh, they may have a trick or two up their sleeves, indeed...
Tuesday, May 12, 2009
Dawn Welsh of Hillsboro, MO Arrested for Trespassing in Her Own Home After Supposed Mortgage Scam
Dawn Welsh thought her house was paid off. She received paperwork from her bank showing it was paid off, but through a series of her mortgage being bought and sold, Wachovia Bank was the final owner of the mortgage and claimed Welsh was still owed on her home despite papers showing otherwise.
Today, Hillsboro, Missouri police came onto her property and broke her door down to remove her from her property near St. Louis. They used a battering ram to enter her home, despite her showing evidence in the past that she owned the property. She had gone to court previously and showed a judge the mortgage was paid in full, and it is a record of the court. However, these are desperate times for Wachovia who continued to threaten the 54-year-old woman.
These paperwork problems aren't uncommon. In fact many people wind up in court after they are told they owe more money on their homes after a series of mortgages being pushed back and forth through the mortgage process.
Wachovia Mortgage took over the mortgage and said they weren't going to honor the paperwork from the previous mortgage and continued to harass this woman. So we have a woman with the proper papers showing her house is paid off with the police and the courts ignoring the paperwork according to the story.
It seems so fitting that the banks have become so desperate to make up their losses that they are bullying themselves over hard-working people in scams to collect even more from the mortgages. They have received hundreds of billions from the taxpayers, and yet they pushed this lady into the corner.
Property rights are definitely in question in the United States and with the government's interest in the banks, we might see more of this as the government looks for sources of income to fix broken programs that are running out of money. Will they go as far as confiscating property through the banks? That's the real question that comes from today's story.
S - O - C - I - A - L - I - S - M
O ne
B ig
A ss
M istake
A merica!
Any Government that turns its eyes on these crooked ba$$tards that run these gambling organizations should be dissolved. These companies should be treated as traitors to America and I'm damn glad Obamas administration is taking aim on them and I can only hope the magic bullit is between the eyes once and for good.... And if you want to call this socialism then that allright by me. But its not socialism, it's called being practical at last especially when these scum bags have robbed America for eight years....
Bush did nothing to stop this crap he handed Obama and thank God America voted the scum bags out....
How cute!
Hasn't anyone noticed with this administration there is always tracking, forcing, controlling, blaming, and taxing going on??? They want to track our medical records with socialized medicine and vehicle milage (so they can tax us), they want to control salaries even on banks who DIDN'T receieve bailout $$$, control what kind of car we buy, control here, control there, force cap & trade on us over some b.s. golbal warming. Blames Bush admin for everything all the while Obama is the one selling us out. Lets be real libs, even the stupidest person can see that he's killing the United States of America! Great Britain has 60% + tax rate. Is this what you want from this man???
Yep,
Just like Clinton did!!!
You are all so detemined to try and take this President down. Boy are those of us who voted for him gonna have a good laugh.
Well it's laughable anyway since you are such a small minority.
wrong....
I say tighten up on Geithner and Obama and get the tax cheat (Geithner) to resign and retire. I am sick of his duplicity and arrogance.