Friday, June 25, 2010
Financial Reform or Financial Nonsense?!
What does the new banking reform mean for Wall Street? Let me put it this way, a president who received millions of campaign dollars from organizations like Goldman Sachs is not going to challenge their primacy by way of legislative reform. This so called reform is a front.
The legislation gives the Federal Reserve more power. It will have more consumer regulation powers. The derivative problem is not addressed and we're back at square one.
Predicatively, the too big to fail banks enjoyed a boast in stocks. Bank of America Corp. surged 2%, Goldman Sachs and JPMorgan Chase each increase more than 3%.
The Bottom line: The Federal Reserve gets more power and the too big to fail banks will run free (until they suffer from another meltdown and need to bum money off the taxpayers.)
Enjoy your weekend!
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You know whats really sad? Real Banks did NOT cost taxpayers money or the collapse. AIG? That wasn't a bank that was an insurance company using derivatives. GM AND CHRYSLER? Auto companies who will probably never pay their money back in full. And fannie and freddie mae will cost taxpayers probably over a trillion in the end and they are still going to this day and the democrats are using it to keep the housing bubble going.
ReplyDeleteThe TARP to the banks wasn't a bad deal it turns out. They are returning the money. The bailout money going to auto companies and Insurance and freddie via extra bailouts or the federal reserve backdoor bailouts is where we are getting screwed.
The crap banks are still in being protected.
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