Robert Oak's blog

Financial Reform Declared D.O.A.

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Financial Reform Legislation is D.O.A. according to Simon Johnson, an expert and watchdog on the Financial crisis. He is not alone in assessing the health of the patient.

At the end of the day, essentially nothing in the entire legislation will reduce the potential for massive system risk as we head into the next credit cycle.

That's right. What managed to get passed is now being stripped in conference, as we warned about and updated on here.

Now lobbyists are after the very weak version of the Volcker Rule:

To secure the support needed for their bill, Senate negotiators are leaning toward creating a series of exemptions to the Volcker Rule that would allow banks to continue to operate these businesses as investment funds that hold only client money, according to several Congressional aides, industry officials and lawyers.

Sunday Morning Comics - Holier Than Dow Edition

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Brought to you by Congressional Hearings - We generate plenty of outrage in hopes you won't notice the lack of any real action.
Cup O' Joe

 

Good Morning! Rise and Shine! Get that Cup O' Joe...
break out the O.J....hang out with the pooch...time to check out the Funnies!

 

Holier Than Dow

 

BP announces a major alternative energy breakthrough, converting lies into energy. "Lies are abundant and we're full of them", a spokesperson said. BP is also considering the vast resources of hot air available.

 

Must Read Posts for June 20, 2010

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On The Economic Populist you might have noticed the right column. We try to list other sites and blogs who have exceptional insight and writing on what is happening in the U.S. economy.

Sometimes though, one cannot say it better but miss those who did.

Must Read Post #1

The New York Times has a great article on rip offs, scams and predators circling around the wounded gazelles as they run up their credit cards, out of money, in The New Poor: Peddling Relief, Firms Put Debtors in Deeper Hole. These creeps should not only be banned from operation, but should be tarred and feathered to boot.

Must Read Post #2

The Wall Street Journal investigated oil well construction and proved BP Relied on Cheaper Wells. Right, squeeze those costs and assume nothing bad will happen.

Must Read Post #3

The New York Times shows BP has a history of slashing costs, ignoring safety. While the spotlight is on BP, how many other corporations, do similar things from short term profits? From inane derivatives to security holes in software, squeezing the workers and costs is a never ending corporate mantra.

Must Read Post #4

Coated in the Black Tar of Darkness. a War Against Financial Reform Continues

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As weak as Financial Reform bills are in the House and Senate, that's not good enough for some. The White House and Legislators want it weaker and are working under the cover of oil disaster to make it so.

UPI is reporting the conference committee has killed derivatives reform. Blanche Lincoln is the one who killed her own amendment, according to the Wall Street Journal. I guess she won her primary so it's back to business as usual.

The latest version would not force banks to spin off their swap desks, but would cordon off the derivatives operations by giving big banks two years to form affiliates to handle the derivatives bets, which are private contracts that hedge against future price changes in various securities.

Unless I'm missing something that is no change at all. SIVs are affiliates, little shell corporations, usually incorporated in the Caymans to hold CDOs and CDSes or other securities. Is there any difference between a Structured Investment Vehicle and this newly coined phrase affiliate? Looks like a duck.....

Must Read Posts for June 13, 2010

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On The Economic Populist you might have noticed the right column. We try to list other sites and blogs who have exceptional insight and writing on what is happening in the U.S. economy.

Sometimes though, one cannot say it better but miss those who did.

Must Read Post #1

Doctors are back to business as usual, putting patients lives at risk by taking kickbacks. Bloomberg investigates in New Hips Gone Awry Expose U.S. Kickbacks in Doctors’ Conflicts.

Must Read Post #2

Should people who cannot answer 150 ÷ 2 = ? be able to take out a home mortgage? A new study, overviewed by the New York Times, shows there is a correlation to being foreclosed on and not being able to answer simple arithmetic questions. No duh.

Must Read Post #3

Paul Krugman calls cash on the claim markets like ripping to shreds wages and social safety nets, as touted by the IMF.

Must Read Post #4

Trade Reform says it all (and why we need country of origin labels on food), in Chinese Organic Food, are you Kidding me?

Must Read Post #5

Sunday Morning Comics - What About Jobs Edition

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Brought to you by that Thing-A-Ma-Jig - All we need is a $1 billion retainer from BP and we can surely clean up that oil mess.
Cup O' Joe

 

Good Morning! Rise and Shine! Get that Cup O' Joe...
break out the O.J....hang out with the pooch...time to check out the Funnies!

 

The Spilling Fields

 


Cartoonist: Daryl Cagle

 

BP Spills Coffee

 

Enduring Ado About Oil

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With the new estimates on oil gushing into the gulf, currently at 4300 to 24,300 barrels a day, more economic impact studies are being released on the BP Deepwater Horizon disaster. Spillonomics estimates currently range from $29 billion to over $70 billion in direct costs for the spill and clean up. A study on the spill's economic impact on Florida estimates losses at $11 billion and 195,000 lost jobs. There are 2.8 million jobs associated with tourism alone in the gulf region. The fishing industry in Louisiana is estimated at $2.4 billion.

Earth Economics estimates the Mississippi Delta to be worth $330 billion and $1.3 trillion and provides an economic annual benefit of $12-$47 billion per year.

There is now a residential real estate estimate of a 10% decrease in gulf coast property values as a result of the spill. These losses alone are estimated at $4.3 billion dollars.

Must Read Posts for June 6, 2010

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On The Economic Populist you might have noticed the right column. We try to list other sites and blogs who have exceptional insight and writing on what is happening in the U.S. economy.

Sometimes though, one cannot say it better but miss those who did.

Must Read Post #1

Gretchen Morgenson notes Banks are dumping their worthless residential loans, including home equity loans, on taxpayers via Fannie Mac and Freddie Mae.

Taxpayers are the ones holding the bag when institutions try to avoid losses by refusing to buy back problem loans they have sold to Fannie Mae and Freddie Mac, the mortgage finance giants that are wards of the state.

Must Read Post #2

Angry Bear wryly comments on the G20 new momentum to reduce deficits is all about Market Concerns:

Finance ministers from the world’s leading economies ripped up their support for fiscal stimulus on Saturday, recognising that financial market concerns over sovereign debt had forced a much greater focus on deficit reduction.

Must Read Post #3

Paul Krugman bemoans the obviously coming Lost Decade, due to G20's focus on debt. Maybe the lost decade has more to do with bailing out mega banks and ignoring the U.S. middle class and real economy.

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