By George Washington of Washington’s Blog. Preface: Please read to the end to see the humorous quote. I have previously debunked numerous false arguments used to defend the too big to fails. See this and this. But the apologists for the TBTFs are now arguing that breaking up the beached whales … er, giant banks […]
Read more...By George Washington of Washington’s Blog. When a liberal labor leader and a conservative financial policy analyst unite against something, you know that something is really bad (actually, I don’t believe in the whole false left-right dichotomy; I think its Americans versus those trying to steal our wallets and our rights, but that’s another story). […]
Read more...By George Washington of Washington’s Blog. On September 25th, I wrote: Paul Volcker and senior Harvard economist Jeffrey Miron both testified to Congress this week that the government is trying to make bailouts for the giant banks permanent. Writing Wednesday in The Hill, Congressman Brad Sherman pointed out that : In my opinion, Geithner’s proposal […]
Read more...By George Washington of Washington’s Blog. I have repeatedly pointed out that big banks are not more efficient than smaller banks. For example, I previously noted that an article in Fortune concluded: The largest banks often don’t show the greatest efficiency. This now seems unsurprising given the deep problems that the biggest institutions have faced […]
Read more...By George Washington of Washington’s Blog. What is the current American economy: capitalism, socialism or fascism? Socialism Initially, it is important to note that it is not just people on the streets who are calling the Bush and Obama administration’s approach to the economic crisis “socialism”. Economists and financial experts say the same thing. For […]
Read more...By George Washington of Washington’s Blog. Financial insider and commentator Yves Smith wrote an essay last week entitled “MSM Reporting as Propaganda” arguing that the government has been using propaganda to make people think that things are getting better, no one is angry, and – therefore – no one should get upset: The message, quite […]
Read more...By George Washington of Washington’s Blog. In 2000, America was described as the sole remaining superpower – or even the world’s “hyperpower”. Now we’re in real trouble (at the very least, you have to admit that we’re losing power and wealth in comparison with China). How did it happen so fast? As everyone knows, the […]
Read more...By George Washington of Washington’s Blog. Congressmen Grayson, Clay and Miller are introducing an amendment to the Consumer Financial Protection Agency bill: Today we will offer the “Financial Autopsy” amendment. The Grayson/Clay/Miller amendment is essential to attacking the root problem of consumer bankruptcy and foreclosure because it requires the CFPA to do a financial audit […]
Read more...George Washington of Washington’s Blog. Joe Biden said yesterday: My grandpop used to say … “When the guy in Minooka’s out of work, it’s an economic slowdown. When your brother- in-law’s out of work, it’s a recession. When you’re out of work, it’s a depression.” [Asked how he views it, Biden responded:] Well, it’s a […]
Read more...By George Washington of Washington’s Blog. William K. Black – professor of economics and law, and the senior regulator during the S & L crisis – says that that the government’s entire strategy now – as during the S&L crisis – is to cover up how bad things are (“the entire strategy is to keep […]
Read more...By George Washington of Washington’s Blog. Everyone knows that the lobbyists for the financial giants are trying to kill any tough new regulations. But they are also trying to weaken existing regulations. Specifically, Robert Borosage notes: The [derivatives] bill that the House will consider on Wednesday creates a clearinghouse, not a publicly managed exchange. It […]
Read more...By George Washington of Washington’s Blog. According to Bloomberg, the original draft of Barney Frank’s derivatives legislation: would have given the Securities and Exchange Commission and Commodity Futures Trading Commission joint authority to “prohibit transactions in any swap” that they determine “would be detrimental to the stability of a financial market or of participants in […]
Read more...By George Washington of Washington’s Blog. The battle to reform the American banking system needs to include reimposing the barrier between investment banking and depository banking (Glass-Steagall), pay incentives based on what is best for Americans and not just the top executives, the end of too big to fail, and other changes which are frequently […]
Read more...By George Washington of Washington’s Blog. You know all about the subprime, alt-a, option arm, and commercial real estate crises. You’re well-aware of the house of cards built with credit default swaps, securitized assets and other exotic investments. You’ve heard about the massive debt overhang threatening individuals, companies and the country as a whole, and […]
Read more...By George Washington of Washington’s Blog. Preface: CDS traders, read the note at the end… Tomorrow, the House Committee on Financial Services will be talking about regulating about over the counter derivatives. Committee Chair Barney Frank has already circulated a draft of the proposed legislation. The star witnesses are Commodities Futures Trading Commission chairman Gary […]
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