Comments on: Wall Street’s Chickens Come Home to Roost http://6ampacific.com/2010/01/22/wall-streets-chickens-come-home-to-roost/ Meandering Musings on Globalization Tue, 07 Feb 2012 21:29:39 +0000 hourly 1 http://wordpress.org/?v=3.1.1 By: MrDalal http://6ampacific.com/2010/01/22/wall-streets-chickens-come-home-to-roost/comment-page-1/#comment-16761 MrDalal Mon, 25 Jan 2010 17:31:01 +0000 http://6ampacific.com/?p=663#comment-16761 They'll just rename it to something else, or have a convulted way of doing it. (proprietary trading). The real issue is something obama cannot fix. or for that matter, nobody can fix. its the whole market setup, with a genius term used to explain it - casino capitalism. now if u can double your money in 2 months, who will not take a chance? take that possibility out, and we'll all be good. - but can anyone do that? shortlist all factors enabling short term trading and remove them one after the other - ? They'll just rename it to something else, or have a convulted way of doing it. (proprietary trading).

The real issue is something obama cannot fix. or for that matter, nobody can fix. its the whole market setup, with a genius term used to explain it – casino capitalism. now if u can double your money in 2 months, who will not take a chance? take that possibility out, and we'll all be good. – but can anyone do that? shortlist all factors enabling short term trading and remove them one after the other – ?

]]> By: Krishna http://6ampacific.com/2010/01/22/wall-streets-chickens-come-home-to-roost/comment-page-1/#comment-16755 Krishna Mon, 25 Jan 2010 06:48:14 +0000 http://6ampacific.com/?p=663#comment-16755 I recall the popular `cram down’ provision Obama used in the campaign – giving power to bankruptcy judges to adjust mortgages that are deep underwater – which is something every bank should easily agree because at least they can expect to recover their capital if the borrower has his home than to force a foreclosure and take the hit in their balance sheets. But the banks deployed their lobbyists, and this vital though totally inadequate measure was defeated in May. The Obama administration sat quietly by. The President can no longer afford to be the slow learner of Washington ways. He should by now know that shame doesn’t exist for Wall Street. Trillions of $ of tax payer money down their throats neither dissuade them from lobbying again on Capitol Hill nor would that leave Congress members less unsympathetic to their pleas. I recall the popular `cram down’ provision Obama used in the campaign – giving power to bankruptcy judges to adjust mortgages that are deep underwater – which is something every bank should easily agree because at least they can expect to recover their capital if the borrower has his home than to force a foreclosure and take the hit in their balance sheets. But the banks deployed their lobbyists, and this vital though totally inadequate measure was defeated in May. The Obama administration sat quietly by. The President can no longer afford to be the slow learner of Washington ways. He should by now know that shame doesn’t exist for Wall Street. Trillions of $ of tax payer money down their throats neither dissuade them from lobbying again on Capitol Hill nor would that leave Congress members less unsympathetic to their pleas.

]]> By: Krishna http://6ampacific.com/2010/01/22/wall-streets-chickens-come-home-to-roost/comment-page-1/#comment-16754 Krishna Mon, 25 Jan 2010 06:30:14 +0000 http://6ampacific.com/?p=663#comment-16754 Obama is clearly missing the ball (just as in his foreign policy initiatives) if he isn't upto shrinking the size of Goliath financial firms. I see more of regulatory reform than structural rewiring that's necessary to obviate future meltdowns. For eg. why can't he ban naked bets like CDS (where neither the issuer nor the bondholder has any stake in the underlying transaction) that broke the back of AIG altogether? By these half-hearted staccato initiatives, I think he's just trying to save his (larger than life) face that he seeded in the minds of people during the campaign. Up there at the altar, he's confused as hell like any other President. Obama is clearly missing the ball (just as in his foreign policy initiatives) if he isn't upto shrinking the size of Goliath financial firms. I see more of regulatory reform than structural rewiring that's necessary to obviate future meltdowns. For eg. why can't he ban naked bets like CDS (where neither the issuer nor the bondholder has any stake in the underlying transaction) that broke the back of AIG altogether? By these half-hearted staccato initiatives, I think he's just trying to save his (larger than life) face that he seeded in the minds of people during the campaign. Up there at the altar, he's confused as hell like any other President.

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