Posts Tagged ‘Finance’

Quick Hit: “Reconsillyation?”

Can we expect good  financial legislation out of this Conference?

Members of the House of Representatives and the Senate are meeting to hammer out a financial regulation bill that will be legislation for the ages!

It’s doubtful given the make up of the selectees forming the committee.

The obvious deficiencies in the conferees from the Senate are well documented in the recent article, “Are You Shitting Me?

It’s a little more difficult to judge the predisposition of the House representatives involved in this process. There are more conferees from the House and they represent smaller, more local segments of the country.

But, if John Boehner’s smoke screen and Ed Royce’s opening statement are any indication of the direction the Republican’s are going we can’t expect much help ‘for the people’ from them.

Reforming Fannie Mae and Freddie Mac will be necessary as we exit this recession. The problems at the mortgage giants are enormous and must be approached in the near future as a pressing and separate issue. But, Boehner, Royce and Republican’s use them as a diversion from their complicity in the financial meltdown.

If Fannie and Freddie are a separate issue, why do they keep pushing to include them in this financial regulation bill that they already claim is too many pages?

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Posted in Congress, Economy, Finance, Politics | Comments Off

“A Half-Fast Bill and Premature Evacuation!”

Powerful Financial Regulation would be good for all Americans!

The Senate passed their version of financial regulation, (S.3217) ‘The Restoring American Financial Stability Act of 2010.’ It now moves to conference to be melded with the House Bill, (HR4173) officially called ‘The Wall Street Reform and Consumer Protection Act of 2009,’ which passed the House 223-202.

Majority Leader, Harry Reid, with the help of Democrats and a few Republicans, in a moment of premature evacuation brought a half-fast piece of legislation to the floor without addressing or revisiting some of the most important amendments up for consideration.

Despite passing with a vote of 59 to 39, the Bill is weak and falls far short of its potential of fixing a messed up banking system, economy, the gambling on derivatives, and the Federal Reserve. Several amendments were added to strengthen the bill, but some of the most important failed to pass or were not brought up for vote. And there is little hope that it will get fixed in Conference.

Conferencing of the Bill will be conducted by Senators Shelby, Chambliss, Lincoln and Representative Barney Frank and a few others. But is it salvageable?

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Posted in Finance, Wall Street | 5 Comments »

“Financial Regulation, A Need for Strength and Vision!”

Today I sent the following missive to every member of the Senate Banking Committee, Democrat and Republican, requesting strong, comprehensive, and visionary regulation of the financial services industry. Tomorrow it will be sent to every member of the Finance Committee. Forty-two members of Congress will have received this request that they do their job for ‘the American people.’

It is my belief, as you will see in the e-mail, that we need to return to a time of greater consumer protection, a time when the Glass Steagall Act protected hard-working Americans from the predatory capitalism that devastated this country in the 1920’s. This letter will be followed in the next few days by my new article “Corruption: With a Lot of Help from Their Friends.”

Please read the following letter, join The Cutting Edge blog and join the conversation with your comments.

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Senator Dodd,

The need for financial regulation is obvious and your effort to pass financial regulation is approaching its nexus.

Is there any ‘real’ desire on the part of Congress to regulate financial predators or to help consumers, the victims of callous and avaricious bankers? Read the rest of this entry »

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Posted in Banking, Economy | Comments Off

“The Pain on Main” (reposted)

In April, the 16th, when the Dow had risen 20% I posted this article on It’s Worth an Opinion and sent it as an Op-Ed, to The Wall Street Journal. I predicted the market would decline by the end of April, based on the disconnect between Wall Street and Main Street. I was off by a few months, but now is the time to reread the reasons for that prediction. Though written last April the information, with different numbers, applies today:

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Originally posted – April 16, 2009

Over 610 thousand people applied for first time jobless claims today, and continuing claims surpassed six million; workers who are still seeking employment while collecting benefits.

The headline number, an improvement over last week, but during a holiday adjusted week, brought some level of excitement. It was “not as bad as expected” but it still translates to more Pain on Main Street. The ‘real’ impact will be lost on Wall Street.

The market has been on a tear for the last five weeks. The historic 20% rise in March continued well into April and hopes of a permanent turn in the economy was evident in the voices of the CNBC hosts, and the traders and analysts on Wall Street.

But, that euphoria, one of green shoots and mustard seeds, will be short-lived. The bear will again dominate the market much to the chagrin of hopeful and optimistic bulls.

No matter how traders and analysts evaluate the bits of perceived news in the economic data, they fail to see the disconnect between Wall Street and Main Street.

Main Street is in extreme pain, anguished by declining home prices and job losses that have a tremendous affect on the consumer, and an undetermined destructive force on the economy. Read the rest of this entry »

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Posted in Economy, Uncategorized, Wall Street | 8 Comments »