US government looking to control credit by reduciing system to 5 large banks

Discussion in 'Economics' started by zdreg, Feb 8, 2012.

by shrinking # of competitors the US government trying to decide who gets credit

  1. agree

    11 vote(s)
    44.0%
  2. disagree

    5 vote(s)
    20.0%
  3. don't know

    0 vote(s)
    0.0%
  4. it doesn't matter. the game is up

    9 vote(s)
    36.0%
  5. don't know

    0 vote(s)
    0.0%
  1. zdreg

    zdreg

  2. Picking winners and losers - via bailouts and regulation - is the 'new economy'. Competition is a sin, and business donors own Congress.

    I guess the logical question - who benefits? aka Follow the money.

    Better check those urls. They're not working.
     
  3. Firstly, your links don't work. Secondly, the money fund industry, as it exists today, is a scam and a danger to society. As such, the rules governing it need to change, as I have said on many threads here in the past. The proposed reforms go in the right direction, so I, for one, would welcome them.

    EDIT: Thank you for new links, they work.
     
  4. zdreg

    zdreg

    "Secondly, the money fund industry, as it exists today, is a scam and a danger to society."

    please back up your statement if you don't wish to be considered part of the large group of posters who just voice their loud and usual clueless opinions
     
  5. Firstly, this is something that I have said a whole number of times before. I am happy to explain yet again, if you like. Would you like me to?

    Secondly, as someone who volunteers to make categorical statements about these proposals constituting evil and unwarranted govt intervention, shouldn't you have bothered to look into the issue a bit more? Some understanding of how money funds work would be optimal, I would have thought.

    Thirdly, I am afraid you're not exactly offering me the most powerful of incentives here. I know the dread possibility of you considering me to be a part of a large group of people that you dislike is supposed to send cold shivers down my spine. However, I regret to inform you, it just doesn't. Just not feelin' it, sorry.
     
  6. zdreg

    zdreg

    firstly, it doesn't matter if you have said it a number of times if you don't provide a link.

    secondly, the bottom line is that what gov't is proposing that u don't get back 3% of your money for a month is just the beginning of capital controls.

    "Thirdly, I am afraid you're not exactly offering me the most powerful of incentives here. I know the dread possibility of you considering me to be a part of a large group of people that you dislike is supposed to send cold shivers down my spine. However, I regret to inform you, it just doesn't. Just not feelin' it, sorry."

    you are far from the center of the universe since if I recall correctly that u live in the UK and on more personal level you are on my radar screen only when you write informative posts
     
  7. agreed Canada has the same system there are three manjor banks. Makes it easier to control things... in the 80's there were somthing like 10k banks early 90's about 2k and now I believe it is well under 1k...
     
  8. Here's a couple:
    http://www.elitetrader.com/vb/showthread.php?s=&postid=3131050&highlight=money+mkt+fund#post3131050
    http://www.elitetrader.com/vb/showthread.php?s=&postid=2328002&highlight=money+mkt+fund#post2328002

    I am happy to expand if need be.
    That is NOT what the gov't is proposing. You have to be more careful, as I have mentioned before.
    I never said I am the center of the universe. I just don't react well to threats, even of a mild and gentle sort.
     
  9. zdreg

    zdreg

    exactly.
    as a result, the financial system is now more at risk for a cataclysmic upheaval as the dominoes become bigger and moral hazard increases.
     
  10. Yes, but then you're barking up the wrong tree... The money mkt fund industry is quite concentrated and already presents a massive systemic risk (as evidenced by the events of 2008). So if you want to do something about the dominoes, money funds offer as good a place to start as any.
     
    #10     Feb 8, 2012