Comments on: President Obama’s Regulatory Reforms Announcement: A Viewer’s Guide

By: Top Posts « WordPress.com

Top Posts « WordPress.com — Fri, 19 Jun 2009 00:20:58 +0000

[...] President Obama’s Regulatory Reforms Announcement: A Viewer’s Guide At 12:30pm on Wednesday at the White House (someone: please update the Treasury’s schedule of events), President [...] [...]

By: eric

eric — Thu, 18 Jun 2009 17:31:11 +0000

Simplicity is dangerous, too, when it concentrates power even more than it already is. The Fed and the Treasury have taken near-dictatorial actions in the past year. And we still don’t know what the Fed is up to with their reported $9 Trillion dollars of off-balance sheet transactions. A lot of what the Fed does is like a black box — shrouded in mystery. The money flows in and out. We are not allowed to know where and why.

Why should we place any more power in the hands of an institution that was a large part of causing the problem? Oh yes, it is a simple fix. It’s also the dumbest thing to do, if you believe in accountability.

Is anyone minding the store at the Fed?

By: eric

eric — Thu, 18 Jun 2009 17:21:57 +0000

As a practical matter, I do not see how to “rebuild the economy” without reducing debt. And that will be painful. Obama is not about pain, except for the top 5%, allegedly. What he’s about is kicking the pain down the road.

The latest figures I’ve read put total debt-to-GDP at 375%. I don’t believe this is sustainable. Obviously the credit markets are having doubts as well. “Restoring the flow of credit” — banks don’t want to lend and people/companies who are overleveraged can’t reasonably borrow. The US Gov’t is overleveraged, too. Until Washington wakes up to this reality, there is no way out.

By: Jameson

Jameson — Thu, 18 Jun 2009 16:00:42 +0000

“SOME SAY what happens in Iran may well be far more important than financial regulation”

By: News Day: MN unemployment up to 8.2 percent / Foreclosures dip / Preventing the NEXT economic meltdown – or not / more « Mary Turck

Thu, 18 Jun 2009 14:17:35 +0000

[...] to inspire new regulatory zeal. Not so. For perspectives on the watered-down reform plan, here and here. If you haven’t bookmarked Baseline Scenario yet, it’s worth doing so – they [...]

By: Bart

Bart — Thu, 18 Jun 2009 12:23:27 +0000

The Serious Pundits in Washington still have their jobs and pensions. They have moved on while the country has not. The banks are still too big to fail. Greed has not been significantly tempered by any of these proposals.

By: MinnItMan

MinnItMan — Thu, 18 Jun 2009 11:51:31 +0000

I am very surpised by Obama’s timidity – the problem is not going away and when the next wave hits, it will be his wave, not his predecessor’s. He appears to be betting that there is no next wave. He needs to take a look at his hometown as the first wave is just breaking there.

By: Links: 2009-06-18 - Credit Writedowns

Links: 2009-06-18 - Credit Writedowns — Thu, 18 Jun 2009 04:06:37 +0000

[...] insurance a la Taleb is warranted at specific times when markets become extremely overbought.President Obama’s Regulatory Reforms Announcement: A Viewer’s Guide- Simon Johnson1230 PM is when we find out if Obama wants real reform or a cosmetic dusting. Simon Johnson provides [...]

By: Per Kurowski

Per Kurowski — Thu, 18 Jun 2009 03:00:02 +0000

Sorry I just do not trust Monday morning quarterback regulators to quarterbacki our future regulations. Some of those speaking about fundamental principles like the “too big to fail” issue, never uttered a word about it when it was truly needed.

Also anyone not willing to face head on the stupidity of the current Basel regulations and foremost there the minimum capital requirements for banks and that so interfered with the risk allocation mechanisms of the market should perhaps not be trusted too much. You see the same way some could be too cozy with the bankers others could be too cozy with the regulators… and I honestly do not know what is more dangerous.

By: Madeline

Madeline — Wed, 17 Jun 2009 23:50:26 +0000

It is no longer the right that is critical and I think ‘substance’ is the key word. Too bad there is none.

By: Making Finance Work « Breakthrough Generation

Making Finance Work « Breakthrough Generation — Wed, 17 Jun 2009 23:30:35 +0000

[...] result of the damage caused by the financial sector, US national debt rose from 40% of GDP to somewhere between 70% and 80% of GDP [...]

By: canadada

canadada — Wed, 17 Jun 2009 23:20:15 +0000

… what use is any of this if it is not a GLOBAL initiative?

Wall Street/Main Steet FAT CATS will just park their moola somewhere else until the heat/dust settles …

… In the meantime, ‘Credit’ is 100% ILLUSIONARY. Until America starts PRODUCING something, anything, again, it’s just one big finger in the dyke.

… pity, btw, about U.S. Treasury bonds. That ‘unloading’ has just begun …

By: Ted K

Ted K — Wed, 17 Jun 2009 22:46:45 +0000

ANNE!!! That’s http://www.newdeal20.org No worries.

By: Michael Donner

Michael Donner — Wed, 17 Jun 2009 20:02:38 +0000

Clearly they don’t have the important stuff even on the table for discussion and debate:

Too big to exist they still act as if too big to fail is a given

breaking up banks/brokerage etc something like Glass-St… is needed. the collusion between the arms of the same company is not only unethical but very destructive. GS upgrades WF, WF up grades MS, etc etc.

GS sells california bonds (or whatever) then sends its brokerage arm to sell CDS after a downgrade..then trades CDSs…etc etc..what a joke!

banks get taxpayer money then use it to jack up the markets while banks sell stock to raise needed capital…all very ‘legal’ of course.
this is not even on the table. what BS.

big is better…knocking out community banks and credit unions when only the bottom line is an indication of success..nothing aobut the health of cities and towns.

fox guardingthe hen house still. what a joke!

nothing of real substance is on the table or horizon. tinkering around the edges with feel good BS.

read: David Korten’s small book Agenda for a new Economy, from Phantom wealth to real wealth…why wall street can’t be fixed and how to replace it….with main street interests finally in front.

so, the conversation will continue around the edges and rotten core left fully in place.
Michael

By: Three Views on Financial Regulatory Reform

Three Views on Financial Regulatory Reform — Wed, 17 Jun 2009 17:25:12 +0000

[...] is supported by the fact that most of the specifics with regard to large financial firms look like moderate technocratic tweaks, i.e., hardly what you’d expect in the aftermath of what the President himself called, “the [...]