Well, I am not an english native speaker and I am sure that your spanish is not as good as mine. I feel free to write here my opinion, and I feel very sad when I see american traders asking for more regulation in their country. As for me the US should get rid of the FED. As simple as that My suggestion to you is that you should go to Zimbabwe... and mate, do not get angry and have a good day
Unfortunately the markets that are completely unregulated tend to produce bubbles and when they burst it might be very painful for a lot of people. Imagine your car having only a gas pedal and no brake.
First, you ducked every insistence to explain and defend your "too big to fail" mantra in the last Fed intervention debate. Frankly, I think you're full of shit. Your posts contain the same half-baked logic and glossed-over talking points as the "tell-all" explainers written by the WSJ. So, you want your questions answered. Okay. I'll be a good sport. Your first question is stupid ignorance. Cheap money ALWAYS creates fiat booms then busts. Massive credit expansions create asset explosions and horrendous mal-investment. When rates are incrementally raised, those tenuous business models and investment schemes that burn cheap money go under, and the whole POP is underway. So your first question is a red herring. CHEAP MONEY - that spawns prolific leverage - always ends badly. Your argument puts the cart before the horse. And we don't need money @ 0% to be considered cheap. Pull a long term 30 year chart up. We're at historical lows. Reading comprehension isn't your strong point. We can all be sure of that!! It was only at your incessant bitchings that I pointed out that "terribly destructive" leverage (BOO HOO!) was created by the Fed to begin with!! I don't care about leverage one way or the other. Its stable rates and FISCAL ACCOUNTABILITY that are the chief concern to any STABLE ECONOMY. You want to solve monetary ineptness with more managerial authority. You want endless bailouts when the whole system needs ACCOUNTABILITY to run efficiently! You're either a closet socialist or a mindless armchair quarter-back who thinks he's got it all figured out. Elites have tried to run economies for centuries. Its like predicting the weather. Too big to control. What regulation IS NEEDED is that barring the sale or purchase of derivatives in which neither party controls an equivalent stake in the underlying. That would mean all the exposure on credit default swaps - that you nary said a whimper of - would be eliminated to the tune of actual outstanding debt. No domino's can fall at that point. No trillions compounded on trillions and banks blowing over like reeds in the wind. Then, let the FUCKERS FAIL. And I'm sure a SOB like you will be holding CITI all the way down.
I have trouble with bailouts, too. Bailouts encourage big banks to take even MORE risks, as they understand that they have a net underneath their fiscal highwire acts. The first GS that fails will ensure that banks after will think twice before selling someone who works at WMT a 300000 dollar home. Best Regards Oddi
But I have no problem with the FED regulating the bank's excessive lending practices that were the root of the current credit crisis in the first place.
But the answer is simple. Make underwriters hold mortgage paper for a 5 year minimum before they're allowed to resell. Simple. Done. Anything more is a bold-faced power grab. We're talking hundreds of pages of recommendations and actionables?? Its patently obvious this crisis has been turned on its head to consolidate Federal power and give broader authority to intervene and act whenever our Dear Leaders see fit!
Exactly. And thats how capitalism is supposed to work. You take bad bets, you go under. The whole financial system is built on a moral hazard. The banks OWN the Federal Reserve system to begin with. So they take on massive risk, write trillions in worthless derivatives, and if the market goes the wrong way....ooops!! We're too big to fail. Lets just vote ourselves a few Trillion from the Fed to bail ourselves out. Thats whats happening. There isn't even a Chinese Wall for F's sakes. Federal Government and Corporate America is a revolving door. The whole political system has been twisted and deformed to extract wealth for Big Business.
If the FED is abolished, please tell me how and where capital formation takes place in order to provide a basis for capital investment, jobs, economic growth, etc. Given that there is virtually no savings rate in the United States, where is capital formation suppose to come from . . . out of thin air???
Tacky listen, I have no problem with checking on citizenship, or whether there is a outstanding warrant for an applicant in another state for lack of payment on a parking ticket. Or whether they are in arrears for child support and are automatically hauled off to the bighouse. It's the cross check of "other information" that I take offense to. That's where government crosses the line from being a government by the people for the people to becoming commonly known as "Big Brother" or rather a fascist state. Oh boo hoo, if I wanted to insult you I'd go right after your mother. Let me ask you something. Did I ever say you worked n a liquor store? Of course not. So why do you take offense? Do you mean to tell me you feel your position in law enforcement holds you above an honest clerk in a liquor store? If so then you need to examine your conscience and maybe go have a discussion with your priest. Stop playing the role of the victim. Wake up and realize you're working for the man. These are only words. Just, My two cents.