Posted on 03/28/2008 8:10:15 PM PDT by kc8ukw
WASHINGTON — The Treasury Department will propose on Monday that Congress give the Federal Reserve broad new authority to oversee financial market stability, in effect allowing it to send SWAT teams into any corner of the industry or any institution that might pose a risk to the overall system.
The proposal is part of a sweeping blueprint to overhaul the nation’s hodgepodge of financial regulatory agencies, which many experts say failed to recognize rampant excesses in mortgage lending until after they set off what is now the worst financial calamity in decades.
(Excerpt) Read more at nytimes.com ...
Don’t know how wise I am but, instinct says: Ahh yes, lets preserve our freedom by making government more powerful over our money....
This is bad.....real bad.
It’s all a bad idea.
We shouldn’t lend them money. We shouldn’t regulate them.
We need more details.
“Swat teams” could be an exaggeration - it could mean smaller targeted action faster with more maneuverability and thus avoid these big actions like we have now.
Or it could mean this administrations legacy of entitlements and spending would be joined by massive government regulation and involvement of every sphere of the economy.
We need more information.
IE: drop in revenue.
If we are going to embrace Zimbabwe’s economic plan, is it ok if just a regular, average citizen prints money, too?
>>But Mr. Paulson’s proposal for the Fed echoes ideas championed by Representative Barney Frank, the Massachusetts Democrat who is chairman of the House Financial Services Committee.<<
Well, that is certainly the way to sell it. /s
There is already an Internet conspiracy theory that Paulson died in January and has been replaced by a hologram. This won’t help.
I think we should dissolve the fed. This idea is stupid and whoever proposed this idea in the Treasury is a traitor to his country.
RElated story that probably doesn’t need its on thread. But it shows the magnitude of the intervention already.
If people are upset by $30 billion in guarantees to stabilized Bear Stearns, they have no idea what is really happening. What central banks around the world are doing is likely the largest government intervention in the world economy in history.
>>Fed Offers $100 Billion More to Banks
By MARTIN CRUTSINGER – 6 hours ago
WASHINGTON (AP) — The Federal Reserve announced Friday it will auction an additional $100 billion in April to cash-strapped banks as it continues to combat the effects of a credit crisis.
The central bank said it would make $50 billion available at each of two auctions, on April 7 and April 21.
Through the end of March, the Fed has provided $260 billion in short-term loans to commercial banks through the innovative auction process. It also has employed Depression-era provisions to provide money to investment banks.
All the moves have been designed to cope with a serious financial crisis that has roiled U.S. and <<
http://ap.google.com/article/ALeqM5jC0Js_XMSCt-GDAijc3qIbjuVZIAD8VMLHIO0
Just what we don’t need is more government help and oversight.
The government is more interested in protecting THEIR JOBS than the people’s jobs.
I don’t like this at all. It has the makings of one big government official bank, controlling all assets and money, all lending and financial transactions, and ends with all consumer financial decisions.
The stock market will do whatever it wants. But the smart money is listening to the people working for a living.
We will be the ones who get hurt. The paper tigers behind the big money financial markets will be rescued.
It doesn't matter by which means America is conquered, what matters is that she (we) is/are.
>>ECB to offer markets 150 billion euros as analysts warn of wider crisis
12 hours ago
FRANKFURT (AFP) — The European Central Bank said Friday it would provide banks with 150 billion euros (235 billion dollars) in additional liquidity, including its first ever six-month refinancing operations.
An ECB statement said the move was “aimed at supporting the normalisation of the functioning of the euro money market.”
Banks and financial institutions use the money markets to raise funds directly but this source has dried up as defaults on US subprim<<
http://afp.google.com/article/ALeqM5gMqaI-6lt_Sa2Cf6T-7zIAR7_oUw
Is there a way this infusion could be added up and compare it to the 2-3% of default loans in the US? Something seems fishy here to need this much.
>>Is there a way this infusion could be added up and compare it to the 2-3% of default loans in the US? Something seems fishy here to need this much.<<
The sub-prime mortgage market in the U.S. is about 1.3 trillion.
Even a 5% default rate and 100% bailout would only be $65 billion.
The total mortgage market is about $8 trillion (in 2006) - 3% of that would be $240 billion. The effect from the sub prime is clearly exceed the initial dollar default due to panic (I mean, loss of confidence, sorry about the P word).
We simply cannot afford that same multiplier times the whole market. So these interventions had better restore confidence or a major recession would appear logical.
BTW, after two years, I finally got your screen name. Very cool.
Cheers!
It's a recipe for more corruption.
Fox, meet henhouse.
There isn’t any panic I hope. I am ready to jump in myself but will make my move (Real Estate) upon my brokers advice. He’s been right since I met him in 2003 and I have no reason to doubt him. I’m still buying shares cheaper than normal and expect it to suit me well in 20 years. :^)
ping!
Just what we need. More government! From the cradle to the grave. We are so fortunate to live in a country that has so many nannies. < / sarc >
Soon we’ll have a hammer and sickle on our money. But nobody will mind after the initial protest.
Chart 1
Chart 1 reveals the linear connection between the Rothschilds and the Bank of England, and the London banking houses which ultimately control the Federal Reserve Banks through their stockholdings of bank stock and their subsidiary firms in New York. The two principal Rothschild representatives in New York, J. P. Morgan Co., and Kuhn,Loeb & Co. were the firms which set up the Jekyll Island Conference at which the Federal Reserve Act was drafted, who directed the subsequent successful campaign to have the plan enacted into law by Congress, and who purchased the controlling amounts of stock in the Federal Reserve Bank of New York in 1914. These firms had their principal officers appointed to the Federal Reserve Board of Governors and the Federal Advisory Council in 1914. In 1914 a few families (blood or business related) owning controlling stock in existing banks (such as in New York City) caused those banks to purchase controlling shares in the Federal Reserve regional banks. Examination of the charts and text in the House Banking Committee Staff Report of August, 1976 and the current stockholders list of the 12 regional Federal Reserve Banks show this same family control.
N.M. Rothschild , London - Bank of England
______________________________________
| |
| J. Henry Schroder
| Banking | Corp.
| |
Brown, Shipley - Morgan Grenfell - Lazard - |
& Company & Company Brothers |
| | | |
--------------------| -------| | |
| | | | | |
Alex Brown - Brown Bros. - Lord Mantagu - Morgan et Cie -- Lazard ---|
& Son | Harriman Norman | Paris Bros |
| | / | N.Y. |
| | | | | |
| Governor, Bank | J.P. Morgan Co -- Lazard ---|
| of England / N.Y. Morgan Freres |
| 1924-1938 / Guaranty Co. Paris |
| / Morgan Stanley Co. | /
| / | \Schroder Bank
| / | Hamburg/Berlin
| / Drexel & Company /
| / Philadelphia /
| / /
| / Lord Airlie
| / /
| / M. M. Warburg Chmn J. Henry Schroder
| | Hamburg --------- marr. Virginia F. Ryan
| | | grand-daughter of Otto
| | | Kahn of Kuhn Loeb Co.
| | |
| | |
Lehman Brothers N.Y -------------- Kuhn Loeb Co. N. Y.
| | --------------------------
µ
| | | |
8
| | | |
Lehman Brothers - Mont. Alabama Solomon Loeb Abraham Kuhn
| | __|______________________|_________
Lehman-Stern, New Orleans Jacob Schiff/Theresa Loeb Nina Loeb/Paul Warburg
------------------------- | | |
| | Mortimer Schiff James Paul Warburg
_____________|_______________/ |
| | | | |
Mayer Lehman | Emmanuel Lehman \
| | | \
Herbert Lehman Irving Lehman \
| | | \
Arthur Lehman \ Phillip Lehman John Schiff/Edith Brevoort Baker
/ | Present Chairman Lehman Bros
/ Robert Owen Lehman Kuhn Loeb - Granddaughter of
/ | George F. Baker
| / |
| / |
| / Lehman Bros Kuhn Loeb (1980)
| / |
| / Thomas Fortune Ryan
| | |
| | |
Federal Reserve Bank Of New York |
|||||||| |
______National City Bank N. Y. |
| | |
| National Bank of Commerce N.Y ---|
| | \
| Hanover National Bank N.Y. \
| | \
| Chase National Bank N.Y. \
| |
| |
Shareholders - National City Bank - N.Y. |
----------------------------------------- |
| /
James Stillman /
Elsie m. William Rockefeller /
Isabel m. Percy Rockefeller /
William Rockefeller Shareholders - National Bank of Commerce N. Y.
J. P. Morgan -----------------------------------------------
M.T. Pyne Equitable Life - J.P. Morgan
Percy Pyne Mutual Life - J.P. Morgan
J.W. Sterling H.P. Davison - J. P. Morgan
NY Trust/NY Edison Mary W. Harriman
Shearman & Sterling A.D. Jiullard - North British Merc. Insurance
| Jacob Schiff
| Thomas F. Ryan
| Paul Warburg
| Levi P. Morton - Guaranty Trust - J. P. Morgan
|
|
Shareholders - First National Bank of N.Y.
-------------------------------------------
J.P. Morgan
George F. Baker
George F. Baker Jr.
Edith Brevoort Baker
US Congress - 1946-64
|
|
|
|
|
Shareholders - Hanover National Bank N.Y.
------------------------------------------
James Stillman
William Rockefeller
|
|
|
|
|
Shareholders - Chase National Bank N.Y.
---------------------------------------
George F. Baker
I’m beginning to think you’re right.
bttt (and thanks for posting that chart).
I'd rather have the Fed do that than manipulate our economy with interest rates.
LOL!
I’m starting to think that maybe the FReerepublic policy of prohibiting comments advocating overthrow of the government is not a good thing.
I agree with the first one.
I think regulation is necessary.
Without FDIC banks collapse. Without regulation stocks become worthless, since money will flow to whoever tells the most clever lie.
There are two problems that have become “revolting developments” for central banks, especially the Fed, in this crisis:
First is the use of derivatives to peddle “risk” with a promise of easy reward to buyers of such instruments. The layered, interconnected web of derivatives has exceeded the ability of the central banks to get a handle on the true size/scope of the meltdown.
Second is the absurd level of leverage used by various funds (hedge and other) that again, created an interconnected web of huge amounts of debt lent against illiquid securities of dubious (ie, mark-to-model) value.
Someone needs to tell the various whiz-kids on Wall Street that this situation isn’t a really bright idea. The SEC is powerless here, FASB has been exceedingly slow to respond, etc.
What should happen is this: The Fed should put forth the proposition to various banks that the only way they would be eligible to ask for temporary lending/swaps/liquidity from the Fed would be to submit to the requisite reporting regulations and then there would be limitations on the levels of leverage and a requirement for mark-to-market on securities and derivatives. If an institution doesn’t want to submit to the requirements, then they should know that they have no expectation of being propped up by Fed action (whether direct or indirect) in the event of a problem.
What will it do to stocks/commodities next week? Hard to say without seeing details. I don’t think that this will do much of anything in the short term, because even if new regulations were written and put into the Federal Register today, there would be a comment period, a response period, fights against the regulation, blah, blah, blah.
The central problem here is the lack of transparency in the finance industry now. We have a huge sub-sector of the industry (hedge funds) who have made it common practice to hide their activities, positions and risk. This can’t be allowed to continue.
***Opinions from ye financially wise Freepers? And what do you think this news will do to stocks and precious metals on Monday?***
I’m not financially savvy, but I’ll say this: The FedGov should GTFO of Wall Street’s business. Seriously
Practically every single thing the government puts its slimy hands into dies.
AMEN! Great minds think alike!
Increasing government control over the economy has been a big boon for other countries, hasn’t it? So why not let a government-protected, hardly accountable, unelected monopoly be in control of a large chunk of the economy? We all know we can implicitly trust Bernanke to do what is right.
Or maybe this is Bush’s strategery. We all know he is a master strategerist. I bet this is his plan to hit us with massive socialism for a thousand years so we know how bad it is, then blam hit us with a hard trun to the right and implement hard core conservative values. Yes, that is what I choose to believe. Praise be upon Bush. Peace be upon him.
I don’t know about “wise”, but I’ll chime in....
This is a power grab, and the GOP’s socialism-lite politics at work. It’s reminiscent of the creation of the Department of Homeland security and wha we get in the end is likely to be about as effective.
Note that this proposal will put both investment banks and the insurance industry under Federal regulatory control. Further note that the Fed will be given the power to examine (and presumably order regulatory changes by dictate) to the practices and internal bookkeeping of brokerage firms, hedge funds, commodity-trading exchanges and ANY OTHER institution that “might pose a risk to the overall financial system.”
So, presumably, the Fed would now have the power to regulate auto manufacturers, utilities, credit unions, supermarkets, or any other institution deemed to pose a risk to the overall financial system. Think I’m exaggerating? Then consider what the potential failure of Wal-Mart would do to our financial markets. This proposal would allow the Fed to step right in and regulate it were that to happen.
Oh, and while we’re increasing the Fed’s power to regulate control over other industries, Mr. Paulson on the other hand wants to lighten the SEC’s control over financial institutions such as stock exchanges. Nothing like a little sweetener for Mr. Paulson’s Wall Street allies, eh?
The way that it’s being approached is typical of GOP politics of the last decade. The GOP political leadership puts a proposal that smacks of socialism on the table. The Democrats, taking their cue, propose something far worse. The GOP political leadership is then “regrettably” forced to support a “compromise.” All the while conveniently ignoring the fact that the GOP political leadership was never forced to go along with any of it in the first place.
“It doesn’t matter by which means America is conquered, what matters is that she (we) is/are.”
>>>>>>>>>>>>>>>>......................
some call it the NWO, and are laughed at , although as events unfold less and less are laughing.
Just pulling back the curtain and making the plunge protection team public.
Wonder if PPT might kick in few thousand for a new roof on my office.
I’m not surprised: Hillory wants to nationalize the Real
Estate Industry!
Well said. Do you mind if I ask your thoughts on the convergence of FASB and GAAP standards with IASB’s?
Bingo!
Years ago, I wondered why we have to pay interest to ourselves. Didn't make sense.
Then one day, Rush Limbaugh had a caller ask about the Federal Reserve. Rush said, "Friend, the Fed is not federal."
Was it Karl Marx who said of central banking, "Let me control your money, and I will control your country" ?
Looks to me that Reagan, Bush/Bush & Company (& don't forget Clinton) have succeeded in bankrupting our country, putting us further in debt to foreigners, and pushing us toward a slimey solution to satisfy corporate America's lust for power. (I think it was under George H.W.'s watch that our gold was shipped "overseas".)
If we had an honest Congress, now, I'd say give them back their original Constitutional right to regulate money.
The x42's are making another bid for power, and nobody is using the obvious verbage ... Bill is running again for president. Completely and constitutionally skirting the Constitution.
And, God forbid, the x42's get the executive branch again, that will make, what? 24 years of FAMILY governmence?
The one thing our founders feared was a monarchy, andf I'm afraid we have a defacto monarchy in the sense that only a certain, acceptable 'breed' will ever ascend to the presidency.
Never, ever, mention the Bilderburgs/Rockefellers, or you'll get a verbal thrashing. (oh, oh, I'm scared)
So....The article (on cnnfn) calls initial response "positive", but to me the quote says something entirely different. "A Thoughful and Sweeping plan"...as in "yup, it's a plan." If you can't say anything nice, don't say anything at all.
I don't see it as a positive. The parallel that I'd draw is with Homeland security. Before, there were many small agencies, some of which worked pretty well. After, there was a gigantic bureaucratic behemoth.
I see the same thing happening with this. Particularly if the Dems in Congress like the plan.
carolyn
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