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David G
01-23-2015, 03:30 PM
Let's hope the regulators have not been so undercut by budget cuts and/or infiltrated by revolving-door Wall St. types as to be asleep at the switch... again!



From Robert Reich --

News that Goldman-Sachs is pushing the envelope by betting its money on risky investments should be a clear signal, if we needed another, that Wall Street is dangerously off track again.
With Elizabeth Warren declaring herself out of the running, HRC could do herself, the Democratic base, many Independents, and even anti-crony-capitalist Republicans, a great deal of good by stating as clearly as possible – perhaps in a speech to top Wall Street leaders (but, please, not in a fund-raiser!) – that we’re perilously close to going back to the way things were before the 2008 Wall Street meltdown, and therefore (1) Wall Street must stop trying to roll back Dodd Frank, and Congress must stop doing so, (2) the size of the biggest banks (which are far larger now than they were in 2008) must be limited, (3) the Glass-Steagall Act must be resurrected (in the form it was before the Street began whittled it away in the 1980s and 1990s), and (4) there should be a clear and strong definition of “insider trading” (such as trading on information any reasonable person would know to be non-public).
Your thoughts?

Norman Bernstein
01-23-2015, 04:45 PM
I suspect that it's going to happen all over again.... and, like before, the ones who precipitate it will basically have no personal downside risk, because they won't be criminally prosecuted, and all the money they make will still be sitting in their numbered Swiss bank accounts after the collapse.

It's not going to end... the Republicans will NEVER pass appropriate regulation.

Congress could eliminate the risk any time they want.... they could a) regulate, and b) impose criminal penalties, with guaranteed jail time, for transgressors.... but they won't.

John of Phoenix
01-23-2015, 04:53 PM
Bankers used to take us to the brink every 8-10 years. The cycle is getting shorter, 6-8. But who can blame them? The last time they were rewarded with billions in bonuses and by nature, they're a greedy bunch.

Michael D. Storey
01-23-2015, 07:49 PM
NPR today sed that risky mortgages have been replaced with risky auto loans. Ha! They run on two things: Fear and Greed

David G
01-23-2015, 09:43 PM
thread from last week

http://forum.woodenboat.com/showthread.php?186933-Anyone-here-ever-heard-of-a-derivatives-bubble&highlight=

I'm afraid I miss your point. Are you under the impression that the risky investments that Reich refers to involves derivatives solely? That, I believe, would be incorrect.

David G
01-23-2015, 10:24 PM
thread from last week

http://forum.woodenboat.com/showthread.php?186933-Anyone-here-ever-heard-of-a-derivatives-bubble&highlight=

I'm afraid I miss your point. Are you under the impression that the risky investments that Reich refers to involves derivatives solely? That, I believe, would be incorrect.