Question: Will President Obama’s recent attempt to de-risk the banks help to ease consumer and/or investor fears and help to boost our struggling economy?
The following article that was recently posted on Financial Times by Dave Shellock reveals that politicians have yet to learn that in stifling the banks they are killing off what nascent economic growth there is and that their moves to de-risk them and then chide them for not lending more to a struggling economy proves to be inconsistent and only heightens fears of structural imbalances in both the economy and policy responses-You Decide:
Obama Bank Crackdown Hits Risk Appetite–Posted On FinancialTimes.Com-By Dave Shellock-On January 22, 2010:
Note: The following blog post that was recently posted on Economics of Contempt makes a point that you can’t simply prohibit banks from buying and selling securities for their own account, because that’s precisely what market-makers do and they have to stand ready and willing to buy or sell securities for their own account, at firm bid and offer prices because, if an investor is looking to sell a security, the market-maker will buy the security using its own capital, and hold it in inventory until an investor who’s looking to buy the security surfaces. It further makes a case that this is different from having a prop trading desk, which has no market-making obligations, and essentially acts as a hedge fund (except it has the not-insubstantial advantage of being inside the prime broker) and some people will claim that it’s impossible to distinguish between market-making trades and propietary trades, but that argument is completely baseless because banks themselves already distinguish between their market-making trades and their proprietary trades, as there’s a whole different set of rules for proprietary versus market-making trades-You Decide:
A Few More Assorted Thoughts on Financial Reform–Posted On Economics of Contempt-On January 22, 2010:
Note: The following is an official transcript of an address given by Dr. Edwin J. Viera, Jr., Director of National Alliance for Constitutional Money at the convention of the “National Coalition to Reform Money and Taxes” in Denver, Colorado, which reveals and meticulously makes the case that the major problem of monetary reform in our country is our own ignorance of the monetary system to the point that people don’t even know what it is they are using as money or even know the name of the thing that they are using as money, let alone what its source is, what its characteristics are, or what its problems are.
It further reveals that another problem, particularly if you deal with intellectuals who run around discussing monetary reform, is that invariably the discussion comes down to the question of whether the dollar should be somehow linked or backed by gold or silver or some other valuable commodity. Additionally, there seems to be a fundamental and unexamined assumption in all of this debate and that assumption is that the paper currency which the Federal Reserve System generates — so-called Federal Reserve Notes — as a matter of fact, or perhaps more importantly, as a matter of law, is a dollar at all. And that anyone, certainly, who’s been a student of American Constitutional law and history knows that a Federal Reserve Note is not a dollar and it has never even been declared by Congress to be a dollar; and it could never be an actual physical dollar, no matter what kind of statutes or regulations Congress or the Treasury Department might enact-You Decide:
RETURN TO CONSTITUTIONAL MONEY–Posted On SupremeLaw.Org-By Dr. Edwin J. Viera, Jr., Director of National Alliance for Constitutional Money-On August 30, 1991:
Note: The following is a recent blog post by Howard Marks of Oaktree Capital Management, who meticulously explains why he is worried about the prospects for economic recovery and that his overarching concern is the huge government stimulus, mostly in the form of extremely low interest rates, that has been impressed upon the American economy since the financial crisis peaked in 2008, not that the stimulus wasn’t warranted — it probably kept the nation from sinking into a depression — but once it is removed, the results could be painful. Additionally, that the economy’s response to the stimulus so far has been “tepid,” which leads him to wonder “whether the slow growth reflects negative underlying trends”-You Decide:
Howard Marks Is Worried About the Recovery–Posted On The New York Times DealBlog-By Howard Marks-On January 22, 2010:
Note: The following eye-opening article that was published by “The New Republic” in 2009 revealed that over the past century we have moved away from a system where bank shareholders and senior executives paid dearly for bad management–and toward a system where fired bank bosses make off with fortunes or launch brilliant political careers. No one is on the financial hook, other than the taxpayer, therefore, our recurring financial crises are not isolated random events; they emerge from a pattern of private and public sector behavior, enabled by the Fed, which basically means that our system’s tolerance for risk is out of control, increasingly dangerous and it is only a matter of time before it collapses again-You Decide:
Note: The following is a “Declaration of Insolvency As To Obligations Payable To The Federal Reserve Banks” that was filed By Paul Andrew Mitchell, B.A., M.S., Private Attorney General, 18 U.S.C. 1964(a) with the United States Bankruptcy Court In Eastern District of Washington on March 31, 2009, that was posted on SupremeLaw.Org, which I believe relates to this issue-You Decide:
Note: This is another recent video and articles that relate to and/or supports this issue-You Decide:
Video: Home Depot CEO, Obama’s Advisers “Don’t Have a Clue”–Posted on ExposeObama.com-On September 20, 2010:
Obama’s agenda: Overwhelm the system–Posted on ReviewJournal.com-By Wayne Allyn Root-On June 6, 2010:
GOVERNMENT FREAK SHOW—KARL MARX HERE WE COME!!!–Posted by Terri Applen on January 28, 2010:
Chavez’ protégé: Barack Hugo Obama–Exclusive Commentary Posted On WND-By Craig R. Smith-On January 25, 2010:
Note: The above articles and/or blog posts, transcript and declaration seem to further support my recent blog posts-You Decide:
ACORN-The Community Reinvestment Act (CRA)-Automaker Labor Unions:
Can America Survive Obamanomics and Remain a Capitalist Society?
“Food For Thought”
“God Bless & Keep Our USA Safe”