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Posted on 11/14/2008 5:27:19 PM PST by Lorianne
On Friday, the Federal Reserve, SEC and CFTC announced an agreement to begin anointing "central counterparties" for the credit default swap market. Before the pols create still more institutions that are too big to fail, and further endanger taxpayers, they might want to spend time defining the problem they intend to solve.
The same goes for House Oversight Chairman Henry Waxman. On Thursday he held his latest hearing designed to blame everything other than failed housing policy for the credit debacle. Eager to avoid being scapegoated, hedge-fund managers at the hearing agreed that the credit default swap market is a problem in need of a regulatory solution. But no matter how many financiers can be made to swear under the hot lights that credit default swaps are the problem, reality is not cooperating with this politically convenient theory. This derivatives market continues to perform better than the market from which it is derived.
Mr. Waxman's committee exists to stage show trials; he doesn't have jurisdiction to legislate about credit markets or anything else. But his media events are helpful to his comrade in exculpation, Barney Frank. The House Financial Services Chairman is among the most desperate to blame something other than housing, where he famously vowed to "roll the dice" with Fannie Mae. He too has fingered credit default swaps and now promises "sensible" regulation. If he does to this market what he did to housing, he will again be rolling the dice with other people's money.
(Excerpt) Read more at online.wsj.com ...
Let’s face it, the American people have handed control to the worst possible group in this time of crisis.
It’s as though people heard the facts, knew the democrats were the cause of the problem, and then decided to elect them anyway.
I'm not clear that any more than a small % of political junkies have any idea of how deeply implicated the Demagouges are in many aspects of the sub-prime fiascos and overall economic mess.
The Mediascum does not like to tell anyone the important facts.....
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Almost as if this entire thing is being staged.
Guess I don't trust government very much.
To quote Winston Churchill, "Men occasionally stumble over the truth, but most of them pick themselves up and hurry off as if nothing ever happened."
agree.
if you had a 401 k why would you vote democrat?
they were talking about confiscating those before the election.
I wish I was smart enough to know — but this entire “meltdown” or “crisis” seems kinda phony to me.
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Me Too...
OK ,, you went into legal agreements with someone else ,, those contracts look very much like insurance contracts but don’t require that you have a compelling interest in the underlying product (unlike life insurance where the persons life must affect you through blood or business) ... the vast majority of these contracts are really nothing more than bets ... and you have no guarantee through regulations that the bookie has the money on-hand to pay off... OK THEN ... I say place an arbitrary settlement date of 01/01/2009 on all these bets,, settle all of them you can and nullify the rest ... the people creating all these legally suspect $$$$ out of thin air should be happy that they aren’t going to jail or a firing squad..
"Force all OTC derivatives onto a regulated exchange similar to that used by listed options in the equity markets.
This permanently defuses the derivatives time bomb. Give market participants 90 days to get this done; any that are not listed in 90 days are declared void; let the participants sue each other if they can't prove capital adequacy. Total taxpayer cost: $0.00"
- - The Genesis Plan by Karl Denninger
We had the savings & loan “crisis” in the 1980’s; the dot com burst bubble in 2000-2001 with many people getting hurt then so what exactly happened this time?
What a piece of salesmanship or rather snow job this time with a couple of banks going south. They would have been scarfed up by other banks in any case had the Feds just stayed the hell out of it entirely.
This whole thing was nothing but a hyped excuse for the government to convert to Socialism. I can understand the Democrats’ looter mentality but where was Bush and the rest of our Republican Congress? I guess things moved a little too fast for our geezers who were supposed to represent the American people.
Excellent, but I think a nose would be better. If they make them keep an 90% cash reserve for loss, it would help. But just requiring that you actually own and have in your possession what you insure would help. And all sellers would need to licensed insurance agents.
A few weeks ago Sixty Minutes did a piece of the meltdown, and guess who they fingered as the culprit?: Why Credit Default Swaps naturally. The FMs were not even mentioned. CDSes will be the offical excuse for the Dems, facts be damned.
bump
Could the continued crimp in the credit market after the infusion of so many $ trillions have something to do with our skepticism that anybody has a clue what to do?
Yes, this will be ‘spun’ more than cotton candy.
A scary thing happened a little while ago...I started thinking. I was reading the Fox Online News article about the G20 meeting on economics and a paragraph stuck out:
According to one diplomatic source, the summit participants were also discussing ways to boost international coordination of stimulus packages.
So, my conspirasist’s mind kicked in. What if: this whole financial mess was instigated to get the world economic situation “coordinated)...our contribution would be (at the beginning) $700 billion with Congress poised to give more if necessary. I also remember reading the title What Happened To The Trillion Dollars Lost In The Stock Market? What did happen to it? One can blame the CEOs, etc but maybe the focus was put there to take it off another direction and people of blame.
What if: the One World (globalization) movement had been prepared and is now ready to be put into place?
What if: (as reported) Obama was picked to be the President over Hillary because he is more readily accepted by the world’s people and an easier candidate to step into the leader of the New World Order?
What if: John McCain was picked as the GOP candidate (remember how he won states’ elections by cross-over voting) because it is a known fact that he would not win the conservative vote and would thusly lose the election.
(Note how Lindsay Graham phoned Obama and has set this meeting up after the election. McCain could hardly phone and set it up without a big question WHY?
What if: Sarah Palin was chosen because she was an unknown...and considered a throw away candidate that wouldn’t hurt the GOP’s future elections when she lost....the unexpected was how the American people responded to her...instantly loved her....I think ‘they’ were shocked at the public’s reaction to her....so, they had to instantly start tearing her apart and trying to destroy her in any way possible.
You all may believe I am a kook, but I tell you...there are more things at play here than you or I really know....and it scares the living daylights out of me.
We MUST remain vigilant. There is a reason why the FBI has not given the results of a security check on Obama...now you gotta know one was done. Maybe the FBI sealed all his records...who really knows....the people certainly don’t.
I am so upset over this election. It truly scares me.
That is old hat to regular listeners of Coast. The truth is even scarier: nobody knows either what is happening or what to do.
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