Subscribe: RSS Feed | Twitter | Facebook | Email
Home | Contact Us
  • Jim

    2 words: Glass -Steagall

  • Obsvr-1

    If the Clinton-ista’s would NOT have derailed Brooksley Born in the mid-90’s (that would be Greenspan, Summers, Rubin and ‘lil Geithner hanging on their Cloak-tails) then there would have been more openness and exchange traded derivatives transactions (Not the private OTC mess with cloaking devices fully engaged).

    And everyone thinks the Clintons are soooo wonderful … barf !!

  • Peter S.

    We no longer live in natural reoccurring economic cycles. Much of the “financial innovation” today is designed to separate mom and pop from their retirement savings. We have essentially three categories of investors today; the traditional long-term retirement savers, the compensated financial professionals traditionally investing on behalf of unsophisticated clients, and once former “gamers,” whose designs now turn to absconding with hopes and dreams of the traditional investor. Our markets are plagued with high frequency trading, computer driven algorithms, insider trading, front running, rumor mills; and the majority of those behaviors are being executed in dark pools. In one single decade our financial markets have been taken over by the first wave of “video game” playing hooligan. They never understood risk; they weren’t checked into the boards, picked off first, or backed off the plate with chin music– their game just ended and they could start right where they lost without consequence.

  • LD

    In one single decade our financial markets have been taken over by the first wave of “video game” playing hooligan. They never understood risk; they weren’t checked into the boards, picked off first, or backed off the plate with chin music– their game just ended and they could start right where they lost without consequence.

    NAILS IT!!

    Regrettably all too true.

  • LOL

    what went wrong ?

    LOL

    everything ! they are just a bunch of shameless scammers playing casino with our money, and now that the money is drying up (getting vacuusucked by dracula himself in the Bordeaux rothsheist castle), the scammers are starting to miss a few bets and it’s becoming painfully obvious.

    watch as they trip and fall in the next few months. of course the Demon RAT in charge will leave the sinking ship with a few billion in his pockets before it’s to late.

  • DL

    “In one single decade our financial markets have been taken over by the first wave of video game playing hooligans” ought to read “In one single decade our financial markets have been taken over by CRIMINALS AND PSYCHOPATHS” (though I do admit that many present-day psychopaths likely started out as video game playing hooligans, or folks who wouldn’t be caught dead in decent human relationships, which is why they played video games close to 24/7)

  • Patricia

    Oh the games people play now,
    Every night and every day now.
    Never meaning what they say now
    Never saying what they mean.

    …and they try to ‘sock it to ya’ — ANYWAY THEY CAN!!!

    When are we going to DEMAND reform and a cleaning up of this MESS to restore some needed TRUST in the markets along with the economy in general? Transparency and ENFORCEMENT of regulations where the regulations are more than on paper but APPLIED fully for the protection of the consumer.

    Wake me up when fiscal SANITY becomes popular again.
    🙂

  • Ivana Boastsky

    SEC Tells JP Morgan Enforcement Action Coming over Bear’s Mortgage Backed Securities Violations says there’s something in their latest SEC filing with respect to a Wells Notice for the Bear Stearns’ EMC Mortgage unit.

    Isn’t the currect GC (Cutler) a former SEC enforcement director?

    Wonder if he’s playing golf this weekend or working.

  • coe

    Have you also noticed, LD, that the proportion of the bank investment portfolio allocated to corporate credit has risen dramatically in these days of puny absolute rates…there was a time when banks exercised their views on credit risk through their own lending books – ie extending credit to customers they knew and had both relationship and underwriting experience with…do we really want these federal and state insured institutions leveraging deposit subsidies in corporate names – you know they do not really staff up to evaluate credit risk in the bond portfolios, and I have to bet they do not formally tap on the shoulders of the credit analysts for their input in any meaningful way…oh, that’s right – these bonds are rated by the NSROs…nothing to worry about then…when is a hedge a bet? only if it goes horribly wrong? I think not…hoist Jamie Dimon on his own petard…fix this problem fast!

  • Jim Wells

    The $2 billion loss is a symptom. The disease is greed. Since the TBTF banks have never been held accountable for the excesses that precipitated the Financial Crisis of 2008 and required a trillion dollar bailout, they have no reason to stop making massive bets on the same unregistered, make-believe securities that caused the crisis in 2008. Making matters worse, it was same type of speculation by banks supported by lax regulation that caused the Crash of 1929. The Volker Rule is a half-step. What’s needed now is exactly what worked after 1929. Reinstate Glass-Steagall to separate government-insured ‘banking’ activities where banks have a fiduciary responsibility to customers, from high-risk investment activities where banks act like casinos, and see nothing wrong with being on both sides of transactions and lying to everyone.






Recent Posts


ECONOMIC ALL-STARS


Archives