tag:blogger.com,1999:blog-6775739590567135420.post3304025462397983259..comments2023-10-30T06:04:10.708-04:00Comments on eye-on-washington: President Obama’s Failed First Yearmuralsignshttp://www.blogger.com/profile/07892531198621839798noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-6775739590567135420.post-68297016861222065602010-01-04T09:10:26.656-05:002010-01-04T09:10:26.656-05:00Is the US Goverment Preparing the Lifeboats for th...<b>Is the US Goverment Preparing the Lifeboats for the Next Financial Disaster?</b><br /><br />03 January 2010<br /> <br /><br />Zero Hedge has an interesting review of proposed rule changes by the SEC and the Obama Administration which you can read in its entirety here. <br /><br />Yet new regulations proposed by the administration, and specifically by the ever-incompetent Securities and Exchange Commission, seek to pull one of these three core pillars from the foundation of the entire money market industry, by changing the primary assumptions of the key Money Market Rule 2a-7.<br />The primary concern seems to be the new ability of money market fund managers to freeze redemptions (withdrawals) of funds at their discretion.<br /><br />"A key proposal in the overhaul of money market regulation suggests that money market fund managers will have the option to 'suspend redemptions to allow for the orderly liquidation of fund assets.'"<br />If you have the time, you should sit down and read through the entire essay at ZH, because it is fascinating. I understand that many will not because of the length and density of the piece, which is really not all that bad, and fairly well written as all of their pieces tend to be. I am not so adverse to some of the other changes in the MMFs such as the tightening of durations, but that is more a quibble.<br /><br />One also has to wonder if and when the government will begin to more aggressively manage the access of private citizens to their 401K's and IRA's and other forms of savings. Or is it just sufficient to manage the things that one might hold in them. Hard to say. <br /><br />Now that the government will be forcing Americans to buy private health insurance (and presumably use it to prevent certain trasmittable diseases for the public good as your private health insurer will have your records) where will they stop? What about life insurance, long term disability insurance, and retirement plans? How about psychological counseling and sensitivity training for social malcontents? "A gram is better than a damn."<br /><br />Here is the concluding paragraph from this essay and I wanted to highlight it here because otherwise it will be overlooked by many who should read and understand it. The conclusions that the author draws about WHY the changes are being made are more important perhaps than the changes themselves. Or at least to me, because I have very little money in any US money market fund, and even that is 100% short term Treasuries. The fraud and mispricing of risk in the US financial system has become pervasive and epidemic, such that a good stiff headwind could have taken it all down, and because of a lack of serious reform, still can. Rather than fixing potential causes of the next disaster, the Obama Administration seems content to block the escape routes and issue priority passes to the big Wall Street banks and a favored few.<br /><br /><br />"At this point it is without doubt that even the government understands that when things turn sour, and they will, the run on the bank will be unavoidable: their solution - prevent money from being dispensed, when that moment comes. The thing about crises, be they liquidity, solvency, or plain-vanilla, is that "price discovery" occurs all at once, and at the very same time. And all too often, investors "discover" they were lied to, as the emperor, in any fiat system, always has no clothes.<br />(SNIP)<br /><br />http://jessescrossroadscafe.blogspot.com/SPECTRE of Deflationnoreply@blogger.comtag:blogger.com,1999:blog-6775739590567135420.post-80558127858818047152010-01-02T15:32:02.890-05:002010-01-02T15:32:02.890-05:00Gene Burnett - Jump You F*#kers (A Song For Wall S...Gene Burnett - Jump You F*#kers (A Song For Wall Street)<br /><br />http://www.youtube.com/watch?v=yge311sFhC8&feature=player_embedded#SPECTRE of Deflationnoreply@blogger.comtag:blogger.com,1999:blog-6775739590567135420.post-83736741487141102462010-01-02T11:04:16.004-05:002010-01-02T11:04:16.004-05:00Hi Spectre,
Hey, thanks for your comment and supp...Hi Spectre,<br /><br />Hey, thanks for your comment and support!!! The way I see things is that the bread and circus has been misguided even though we all know that this has been the modus operandi for decades. A bread and circus government is the way it will be, at least for the time being.<br /><br />We see China channeling their stimulus packages into real things that can be made and sold. They do not put all their financial energy into creating securities and derivatives that are worth-less and non-productive. China makes things, and hires workers to do those jobs. Not the United States. All Obama's energies have gone into the banksta economy and the war machine economy.<br /><br />The people were thrown a minuscule bone with a small scale stimulus.<br /><br />Anyway, we are now in a new year. The show continues.<br /><br />take care, jerrymuralsignshttps://www.blogger.com/profile/07892531198621839798noreply@blogger.comtag:blogger.com,1999:blog-6775739590567135420.post-87617272814312110962010-01-02T10:06:31.256-05:002010-01-02T10:06:31.256-05:00Jerry, another great piece my friend! I would take...Jerry, another great piece my friend! I would take exception to one short paragraph:<br /><br /><b>"We saw a token “real” economy bailout of only a couple billion dollars because the remainder of the economic stimulus package bailout went into tax-cuts. The Republicans hijacked a Democratic Congress, once again. The unemployed-under employed-no longer looking for work, and the part time wanting full time unemployment picture has reached a near Depression era aggregate figure of almost 20%. 16 million unemployed."</b><br /><br />There is no difference between the Crime syndicates that call themselves the Democratic and Republican Party. It is simply bread and circus to keep those too busy trying to survive from seeing the thieves as they really are. They have both bankrupted this country. The math is simple enough, as Karl Denniger would say.SPECTRE of Deflationnoreply@blogger.comtag:blogger.com,1999:blog-6775739590567135420.post-13469914558845166012009-12-30T23:32:10.998-05:002009-12-30T23:32:10.998-05:00TSA Threatens Blogger Who Posted New Screening Dir...TSA Threatens Blogger Who Posted New Screening Directive<br />By Kim Zetter December 30, 2009<br /><br /><br />http://www.wired.com/threatlevel/2009/12/dhs-threatens-blogger/#ReplaySPECTRE of Deflationnoreply@blogger.comtag:blogger.com,1999:blog-6775739590567135420.post-79611823831388350202009-12-30T09:35:12.313-05:002009-12-30T09:35:12.313-05:00Move Your Money
http://www.youtube.com/watch?v=14...Move Your Money<br /><br />http://www.youtube.com/watch?v=14v-QXlU114&feature=player_embeddedSPECTRE of Deflationnoreply@blogger.comtag:blogger.com,1999:blog-6775739590567135420.post-44886813377685672892009-12-30T08:47:00.015-05:002009-12-30T08:47:00.015-05:00Bankers Get $4 Trillion Gift From Barney Frank: Da...Bankers Get $4 Trillion Gift From Barney Frank: David Reilly <br /><br />http://www.bloomberg.com/apps/news?pid=20601039&sid=a48c8UpUMxKQSPECTRE of Deflationnoreply@blogger.com