Comments on: Roger Lowenstein on Financial Reform

By: Grand_Supercycle

Grand_Supercycle — Wed, 18 Nov 2009 19:23:20 +0000

I use technical analysis to identify trends which can also tell us where the economy is headed.

My long term USD indicator has been giving BULLISH warnings for some time and I am expecting a USD rally.

My indicators can identify trend changes before they occur.

They warned me of an impending market crash back in early *2007*

The VIX index continues to give bullish warnings as well.

Is the bear market rally ending ?

http://twitter.com/GrandSupercycle

By: d4winds

d4winds — Wed, 18 Nov 2009 10:46:54 +0000

Let ‘em fail, just like smaller banks. Limit the Federal role to DIP finance. Period. The fall of Lehman was not a policy mistake. However, misleading the markets to believe that nothing of the sort would be allowed to occur was the huge one. The only systemic risk is that of concurrent failures. So stagger the bankruptcies with life-support loans, if necessary. Using insolvencies to make the big yet bigger, a la subisidizing WFC’s take-over of Wachovia and JPM’s take-over of both WaMU & BS, may help out the FDIC’s obligations in the short-term but in the longer term–”longer term” = 1 year per recent history–it produces only more economic and risk concentration.

By: Brett Tibbitts

Brett Tibbitts — Tue, 17 Nov 2009 19:41:25 +0000

To me, the most important question is: what has changed with the new administration and new congress? Has anything on Lowenstein’s list truly been rectified?

They DO have the benefit of more knowledge as time has gone by. They DO have the benefit of being able to be reflective and not having to make decisions in a true crisis. They DO have the benefit of controlling all aspects of the federal government.

But are they doing anything of any substance? Are they acting as if this is still the number one issue facing this country? Or are they spending the vast majority of their time dealing with issues that should be further down on the list, such as health care reform, cap and trade legislation, flying all over the world, moving gitmo trials to NYC?

As I look at Lowenstein’s list, I have very little confidence anything has changed. And no one seems to be putting much pressure on this administration and congress to shift gears and make truly good change in this area.

Some day, these leaders will no longer be able to blame the former administration for everything, and they will be held accountable for what change they truly did bring to the table. Hopefully, they will not be dealing with a bigger financial crisis of their own when that day comes.

By: jzw

jzw — Tue, 17 Nov 2009 17:50:27 +0000

The first (of many) necessary steps is to align the interests of bank execs and taxpayers. The simple solution is to make all payments (salary,bonus,pension) to execs subject to clawback if a bank requires tax payer bailouts. The rule would apply for all payments made up to 5 years before the bailout and would apply to all execs regardless of whether they were still employed or not.

Its much simpler to make people act in their own self-interest than try and come up with complex regulatory schemes which will be evaded.

By: torrie-amos

torrie-amos — Tue, 17 Nov 2009 17:06:32 +0000

the doom loop, lol, corresponds with the advent of the ATM, coincidence?

By: Greg0658

Greg0658 — Tue, 17 Nov 2009 16:50:21 +0000

no offense BR *.. but I am getting miffed at all the disaster capit’ism paper pushing going on .. at our misery expense .. book writers and thinktanks and accountants and lawyers and politicians and media reporters (for profit ?)

I know .. thats just the way that it is .. on 21st century earth

* Mr Pioneer

By: willid3

willid3 — Tue, 17 Nov 2009 16:38:14 +0000

the doom loop?
http://baselinescenario.com/2009/11/17/banking-in-a-state/

By: torrie-amos

torrie-amos — Tue, 17 Nov 2009 16:28:17 +0000

First Shot Off The Bow, spwra, solar outta california, uhmmmmmm, there chinese mfg plant cooking some numbers up for dinner, oh how fun………………things come in three’s, what chinerese company will be next, time frame 6 weeks, good odds on that one

By: willid3

willid3 — Tue, 17 Nov 2009 16:24:27 +0000

along with the excluding of any regulations for the credit derivatives. and allowing the 40-1 leverage in the investment banks. and removing over sight of the credit ratings agencies

By: torrie-amos

torrie-amos — Tue, 17 Nov 2009 16:24:13 +0000

okay, so what else is new, ain’t gonna happen, i haven’t read his book, yet, the premise on problem solving is when a problem is not solved multiply by .5 too add the time frame when the problem may or may not be addressed, and then repeat, it’s been a year since we could of done them, call me in may when we have spring flowers, and i’ll take five too one we are still exactly where we are today, lower interest rates for forseable future, yada yada yada