http://www.youtube.com/watch?v=gUkbdjetlY8
http://www.youtube.com/watch?v=sfX1htAH6ww
Contrast. Lol.
http://www.youtube.com/watch?v=GKZgfrsItmw
Posted on 09/18/2008 7:36:13 AM PDT by reaganaut1
[1] We need to have the Treasury and the Fed on television saying that they will issue $300 billion in one-year paper that will be used to finance the purchase of distressed assets that do not have home equity loans attachments at 30 cents on the dollar for those who want to sell them.
...
[2] We also need, as I have been calling for endlessly, a Home Mortgage Resolution Trust that can buy distressed mortgages from banks and brokers and then work them out over time turning absurd exotic mortgages into 30-year fixed mortgages that would keep hardworking people from being thrown out of their homes.
...
[3] [W]e immediately need to change the rules on these credit default swaps. This is a market -- not unlike the old options markets, or stocks before federal regulations were created -- where there is no regulation whatsoever.
...
These rules should be made immediate going forward. That way, these insurance contracts cannot be used to destroy the underlying security or company. Right now, this stuff us like taking a life insurance policy out on someone you hate, and it is legal to murder them.
[4] The SEC should immediately bring back the uptick rule and extend it to ETFs. All this would do, like the rule against naked shorting, is bring things back to the '90s, where there was nothing wrong with the functioning of the market.
...
[5] Finally, the Federal Reserve needs to temporarily cut the fed funds rate on an emergency basis to 1% as it was in 2003 even though things were not nearly as bad then as they are now.
[6] The SEC should ask for equal disclosure for long and shorts, and the difference is just plain silly.
(Excerpt) Read more at thestreet.com ...
John McCain *must* have informed opinions on these questions. If he just issues general broadsides about corporate and Wall Street "greed", he deserves to lose. But America does not deserve Obama.
Well put. I surely hope “they” are listening.
Here’s what the government must do:
1.
2.
3.
and finally,
4.
......
What McCain needs are surrogates who can talk about this stuff in a way that shows leadership. He’s going to have to show that he can out good people in at treasury and the fed.
Needs to hire Greenspan as his finance advisor!
http://www.youtube.com/watch?v=gUkbdjetlY8
http://www.youtube.com/watch?v=sfX1htAH6ww
Contrast. Lol.
http://www.youtube.com/watch?v=GKZgfrsItmw
McCain does need to have more ideas on the economy.
As a start, I’d recommend that he have a good idea to ignore Cramer. I’ve never seen a guy be so consistently wrong. It is pretty clear after looking at Cramer’s record that he didn’t make his alpha with good stock picking - he made it with inside information and leverage.
1) Separate loans (banking) from investments (brokers)
2) Cap the amount of the first or primary residential loan at 80% of the value of the home
3) Cap the amount of a secondary residential loan at 20% of the value of the home
4) Prohibit any home to be used as security for any loan about in excess of 100% of the value of the home
5) ACTIVELY prosecute individuals that submit fraudulent paperwork in an attempt to get a loan.
6) Do not allow any loan to be sold or transfered to another bank or other financial until that loan has been held by the originator for a min of two years for a fixed loan or until 6 months AFTER the first rate adjustment on an APR.
7)Remove the “redlining” restrictions
That's absurd. While CDSs trading is unregulated, many of the players that deal in CDS contracts are regulated. Regulators should monitor the use of CDS dealings (and all risk shifting arrangements) by those whom they regulate, in the context of the whole enterprise, rather than create a regulatory scheme that focuses on specific trades. That's the main problem with financial regulation, too much myopic focus on discrete activity with little regard for how such activities relate to the rest of the economic picture.
Also, CDS arrangements cannot be standardized to the point that would allow exchange trading. I don't think these issues can be dealt with appropriately in the context of a political campaign. I would push the general concept of an integrated regulatory scheme and leave as much of the detail as possible for after the election.
The SEC (Securities & Exchange Commission) is unquestionably partially responsible for the recent volatility and drop in the stock markets. They have done a terrible job protecting American investors and need to be reprimanded loud and clear by the Senate Banking Committee.
Here are some of the most glaring problems with the SEC that need to be addressed immediately:
1) On, July 6, 2007 the SEC got rid of the Uptick Rule regulating short sellers which had been in place since 1938 because of short selling bear raids during the Great Depression. Since the Uptick Rule was taken out, the volatility on the stock market has increased by 70% as measured by the VIX Index.
2) On November 2, 2007 the SEC allowed the NYSE to get rid of the Program Trading Curbs that had been in place since the 1987 stock market crash. The NYSE formerly implemented a curb on program trading whenever the NYSE Composite Index moved 190 points or more from its previous close, and permitted program sales to be executed only on upticks and program buys on downticks.
3) TODAY, SEPTEMBER 18, 2007 FINALLY - The SEC has issued a ruling to stop the abusive and criminal practice of Naked Short Selling, which is simply counterfeiting the shares of publically traded stock. WHY DID IT TAKE THEM UNTOLD YEARS AND A FINANCIAL CRISIS TO DO THIS???
These are major problems that NEED TO BE FIXED IMMEDIATELY BY THE SEC. These problems have resulted in a massive amount of increased volatility and instability in the equity markets, reducing the net worth of American investors, driving companies out of business, substantially raising the cost of capital, and costing American taxpayers billions in government funded bailouts.
Because the SEC is regulated by the Senate Banking Committee, I urge FReepers to send letters & emails to the Senate Banking Committee demanding that the SEC reinstate the Uptick Rule and Program Trading Curbs, and ensure that the criminal practice of Naked Short Selling is truly stopped once and for all.
In addition, a full investigation needs to be made into corruption at the SEC - and some heads definitely need to roll at the SEC for their gross incompetence.
“John McCain *must* have informed opinions on these questions.”
I distinctly remember him announcing in public some months ago that “I admit I don’t know that much about economics”.(maybe not and exact quote, but close enough)
Don’t you think it’s going to be an uphill battle for him to convince people that HE knows what he’s doing??
I’m afraid he doesn’t have much more credibility than most other politicians on this issue.
7) All principals (including accountants) currently or recently working for any company that is bailed out by the Fed’s must do 5 years in a Federal prison and are banned for five more years from any position (or responsibilities) similar to their currently held position (or responsibilities) with any corporation represented on the stock exchange board. If there is found to be deliberate mismanagement (cooking the books) then its ten years and permanently banned.
Make’em pay.
That’ll stop the bailouts immediately.
JB
What I'm afraid of is the government (or something backed by the government) buying a $400,000 mortgage on a property that now would sell for $250,000 - for four hundred thousand dollars.
Even if the interest rate goes to 0.5% fixed, you'd be nuts to want to stay in a house which is seriously underwater on the loan.
A writedown of loan balance, not interest rate reductions, is the only way to keep people in homes. That writedown needs to be eaten by the private sector, not the taxpayer.
Whatever Jim Cramer says... we should do the opposite and we’ll be in good shape.
You are way too logical to work in the government or banking industry. I have had three mortgages and each one was issued using your rules, but that was back in the day when grownups ran the country.
Banking was a business now its just a plain scam.
Increase the bank reserves. Its like 10% on daily transaction balances and ZERO on everything else. How about 50% on Total bank obligation.
Short sale must be settled in 24 hours no washing through other institutions.
Borrowers must continually increase equity in purchase. No Interest only BS.
Everyone is not entitled to a loan you must earn that right through Equity you put up and ability to repay.
Quick question. Have you defaulted on any of those three mortgages? I suspect not .... and that why those rule (or actually a reversion back to the old rules), work. Those rules are designed to minimize risk not increase risk.
And that is what is the problem with today’s rules.... let the banks and housing markets run free ... of any restrictions, of any common sense of any sanity. And combine that with the promise or implied promise from the feds that the banks would be bailed out and you end up with today’s situation.
You are correct sir ... back when grownups ran the country. Man I miss those days.
For the record nary a one. They were all paid in full each month until the houses were sold. In fact my first wife and I were turned down the first time we applied for a loan because our debt to income ratio was a little off, about 5% as I remember, and we were pretty young (we were in our mid 20’s and right out of college) with a good but not long term credit history. Two years later, with more time on the job and a longer credit paper trail, the same S&L happily gave us the first of 3 loans they would give us.
As Archie and Edith used to say “Those were the days”
How about the part where we put the criminal fraudsters in jail instead of bailing them out?
When does that start to happen?
[And that is what is the problem with today’s rules.... let the banks and housing markets run free ... ]
We wouldn’t be where we are if the “banks” were lending their own money. They weren’t - in fact major players in the sub-prime game weren’t even banks.
Ameriquest mortgage was never a bank. Every one of their loans was bundled up and sold to some sucker via securitization.
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