FOR ONCE, CODE PINK HAS IT RIGHT!!
Posted on 07/10/2009 10:11:59 AM PDT by NormsRevenge
WASHINGTON – The huge amount of money tied up in complex derivative transactions helped cripple the economy, Treasury Secretary Timothy Geithner told lawmakers Friday as he laid out a case for greater government control over a generally unregulated sector of the financial markets.
"Establishing a comprehensive framework of oversight is crucial," Geithner said ..
Despite apprehension among Republicans, the effort to add government restrictions to these more freewheeling financial instruments has gained support within the Democratic-controlled Congress.
"Clearly, we're going to be significantly expanding regulation of derivatives," said Rep. Barney Frank, ..
(Excerpt) Read more at news.yahoo.com ...
Just wait til they see the ‘Carbonized Debt Obligations’ and ‘Carbon Default Swaps’ in the Cap and Trade go wild!
Great, Congress is going to write regulations for a product only MIT MBA grads understand.
Could never have been any derivatives without their underlying assets created via the Community Reinvestment Act and Fannie Mae.
I’ve said it before and I’ll say it again; Burn this Mother DOWN and let’s get ON with our lives!
All this proping up and lames excuses are delaying the inevitable, and it is going to be ug-lee!
...Geithner is crazy if he thinks he can stop Wall Street from coming up with new financial products....capital flows where it’s welcome.
Sorta like how TurboTax blindsided ol’ Timmy, eh?
“Great, Congress is going to write regulations for a product only MIT MBA grads understand.”
At least John Thain can explain it to us ;-)
Derivatives helped FUND the famous Bush economic recovery, you mean we couldnt just sell them forever? Ran out of buyers? Ponzi maybe? Remember thoose fun days when we partied and lived life big based on home equity loans paid by derivatives?
Gee, didn’t the government sent Michael Milken to prison for creating junk bond derivatives about 20 years ago? That makes Geithner’s claim pretty preposterous.
Painful, yes. But I really don't think it's avoidable.
Get ready to stone the goat!!!
AIG Prepares to Pay More Bonuses to Executives
CNBC | 7/10/2009 | Staff
Posted on 07/10/2009 5:31:52 AM PDT by Red in Blue PA
http://www.freerepublic.com/focus/news/2289562/posts
That’s the “problem” with freedom, when people have it they use it.
“That’s the “problem” with freedom, when people have it they use it.”
....yep...and I got more news for Geithner...if he makes things too onerous on Wall Street, there will be even more capital flowing out of this country into foreign markets.
NOTE TO LITTLE TURBO TIMMY:
We don’t buy it and neither does anyone else ,, you went to parties and had dozens of these derivative billionaires in your inner circle for almost a decade.. You were blindsided? BS! you were right there. I still say wipe the derivative holders out ,, they are illegal insurance products.
Bill Klintoon, at the end of his term, signed the Commodity Modernization Act, which specifically excluded derivatives from SEC regulation, and prohibited regulation of hedge funds (Private Equity Firms). The bill was sponsored by Republicans.
Geithner is incompetent and a tax cheat and a lifelong government hack, but I think its right that the feds were unaware of the massive scale of the derivatives markets.
I watched the webcast of the hearing on my webcast. Geithner was a slippery as a wet rock. It was clear they are going to do nothing to impede the super-profitable business of over the counter credit derivaitives like credit default swaps that have already cost taxpayers hundreds of billions and counting.
Risk analyst Christopher Whalen has done the most to expose the fraud behind credit derivatives. See story on his hard-hitting testimony before Senate Finance at this link: http://mindovermarket.blogspot.com/2009/07/credit-derivatives-largest-source-of.html
Bump for later
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.