Posted on 07/22/2010 10:44:59 AM PDT by taildragger
"Whenever you get new laws and "reform," unintended consequences are sure to follow. Usually they take awhile. Not so with Dodd-Frank. WSJ reports that Ford has already yanked a bond deal, because the ratings agencies, fearing legal liability, won't let the automaker puts their ratings in the prospectus, making a sale impossible. So did Dodd-Frank just kill the bond market? Well, probably not.. Regulators will likely find some way around this impasse, but it's still amusing to see the bill INSTANTLY slow down the gears of capitalism (or at least capital raising) as its fiercest critics might have suggested."
(Excerpt) Read more at businessinsider.com ...
http://www.cnbc.com/id/38362939?__source=yahoo|headline|quote|text|&par=yahoo
http://finance.yahoo.com/news/Structured-Asset-Trust-Unit-bw-642706245.html?x=0&.v=1
The question is, is the exercising of the "Call" on the Bonds tied to what Financial Reform has done?
Are looking at a major error in the the Financial Reform Bill?
Will they fix it, or will the bond market and the bond agencies flounder and drift until this is addressed?
Government of the People, by the Morons.
Indeed! It may be a mistake to assume the consequence is unintended.
But this will effect all who goes for a Bond offering and need a rating and now the ratings agencies do not want the liability.
Oh, so then they would have to turn to the govt. for bonding?
How is that "unintended"?
see my tagline
This whole bunch of traitors needs to be marched through
the streets and hanged. Shame on all of them.
Screw the Obambi Marxists...
Collins ,Snowe, and Brown probably vote for this too.
“But this will effect all who goes for a Bond offering and need a rating and now the ratings agencies do not want the liability.”
Yep, yesterday my electrical contract company lost three future projects because they “lost funding!”
Basically, if the planners do not have 100% of the money for the project, they either dropped the project or put it on hold because they won’t be able to guarantee funding without a rated bond! DUH!
This is going to hurt almost every industries most likely immediately! But here is the kicker! Watch the MSM and Dems go after the American public with the claims that the “haves” are “hoarding their money and causing the economy to slow down!” Anyone want to bet? They have already made these statements, but I bet they get bigger and louder!
I can see it now: “Rich Republicans are hoarding more money to slow economy in an effort to help their election chances in November.”
TO say I am dissapointed in Brown is an understatement...
If Frank'nDodd's result was to create confusion and angst within the bond rating agencies, it's obvious the agencies will need additional "guidance". From the federales of course -- via additional regulation or legislation. Whatever these red bastards do is designed to create dependence on the feral government. First, create a problem; then offer a government solution -- to fix the government created problem. Round and round we go! Good work if you can get it.
Exactly right.
Brown is a RINO idiot!!
“First, create a problem; then offer a government solution — to fix the government created problem.”
I believe President Reagan said, “Government does not solve problems; Government subsidies them!”
Could Ford not sell its Bonds in an overseas market and ignore the US security laws? Methinks raising capital may easily slip offshore to the great detriment of NYC. Is this another unintended consequence of nannyism? Is there some law that requires capital raised by US firms overseas to be handled by the moneychangers in NYC?
I give these red bastards ZERO credit for anything remotely resembling Constitutional allegiance. Anything and everything they do in association with the kommies in odinga's administration is designed to place government in control. Frank'nDodd need to be marched to the gallows at dawn after a speedy trial. Benedict Arnold, along with a string of other traitors did less harm to this country than these card carrying idiots have done.
Too true! Another great one from, well, the Great One:
Government's view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.
ain’t it sweet, they called it an ‘impasse’ instead of a Dodd-Frank, Obama screw up...
And just think what healthcare will be..
He may have said “subsidizes them” but I guarantee you, only a pinhead would say “subsidies them”
Thank you for your gracious, constructive correction. With friendly conservatives like you, we really don’t need liberals - do we?
One can assume that the immediate shutdown of the US economy wwill be accomplished by this bill, which is like a “kill” button.
All credit and bond markets function on issued ratings. If ratings are not issued...everything stops. Ratings ARE NOT being issued!! Right?
Extend beyond the bond and credit markets to the insurance markets. No CONSTRUCTION PROJECT, not 100% financed, can be originated or continue without INSURANCE, and, no insurance can be issued without bond and credit ratings.
Result....economic shutdown...period. NO?
http://www.youtube.com/watch?v=u6H63CD7uQA
This is a 10 minute cartoon from 1948 talking about America’s Freedoms and to be wary of the various “isms” out there. Of course they are about 15 years to late (FDR), but it is a great cartoon and we see most of it happening again today under Obama.
Great section on the “Rich Capitalist” which describes this whole bond thing very well.
Construction and related industries are going to grind to a halt - if they weren’t dead in their tracks already.
This madness must stop.
“If ratings are not issued...”
D&*n those Big Bankers! All they care about is money!
The link below is an extended analysis with further links to even greater in depth details of the Dodd Frank crime against humanity....
here’s another bit:
Credit rating agencies panicking about legal exposure from financial reform bill
By: MARK HEMINGWAY
Commentary Staff Writer
07/21/10 3:53 PM EDT
Looks like another prime example of pass the bill to find out what’s in it:
Standard & Poor’s, Moody’s Investors Service and Fitch Ratings are all refusing to allow their ratings to be used in documentation for new bond sales, each said in statements in recent days. Each says it fears being exposed to new legal liability created by the landmark Dodd-Frank financial reform law.
The new law will make ratings firms liable for the quality of their ratings decisions, effective immediately. The companies say that, until they get a better understanding of their legal exposure, they are refusing to let bond issuers use their ratings.
That is important because some bonds, notably those that are made up of consumer loans, are required by law to include ratings in their official documentation. That means new bond sales in the $1.4 trillion market for mortgages, autos, student loans and credit cards could effectively shut down.
Collins & Snowe did. i don’t know about Brown.
NO consequence is un-intended when it comes to the current gubment.
the Basel Committee, which is made up of central bankers and regulators from 27
countries, is the main body responsible for laying down global rules for bank
governance. But several countries have looked to impose their own restrictions
on the financial system, with differences over areas such as short-selling,
bonuses, derivatives and consumer protection.
This graphic explores the next round of reform proposals – Basel III – and their
implications for banks, and compares regulatory reform in the major financial
centres around the world. more what will america banks become
http://www.ft.com/cms/s/0/f58d854e-82db-11df-b7ad-00144feabdc0.html
It was all three stooges. Not a single Republican in the House voted for it though.
I’m very glad this thing has the name Dodd-Frank on it so people will always be reminded who foisted this piece of garbage on us.
Not “government” in control. THEM in control. They HATE government when they’re out of power.
betcha they have a us govt bond rating agency up in weeks
of course everyone would ignore or heavily discount those agency ratings
the once unthinkable is now run of the mill
” The Fannie Mae, Goldman Sachs Preservation Act of 2010 “
I don’t care anymore. I just want my “Ow, My Balls” channel and a 80” television to watch it on.
/s
I couldn’t agree more.
With your tagline, that is.
I think they just hate Constitutional government. They have little power under our Constitution since most of the power was left to State and local governments. Not good enough for our wannabe masters who have been tenaciously working towards building and staffing the biggest plantation ever.
As bad as it is, and I think it’s terrible, at least the folks who are doing it, are doing it on the up and up. They’re proud of it.
Our guys do it kinda sneaky, as if we’ll notice and object. I’m to the point I say screw them all. They’re all moving us to the same destination.
People are waking up. Excellent for that.
As bad as it is, and I think it’s terrible, at least the folks who are doing it, are doing it on the up and up. They’re proud of it.
Our guys do it kinda sneaky, as if we’ll notice and object. I’m to the point I say screw them all. They’re all moving us to the same destination.
People are waking up. Excellent for that.
I prefer the three-step approach to dealing with traitors: have them hung, drawn, and quartered. They deserved no less after all they have done, are doing and plan to do to this country.
Agreed. The Dims, co-opted by the dark side, have abandonded even the pretense of pursuing Constitutional governance. Many Pubbies, desiring to be part of the DC "in crowd" were caught up in the multileveled DC rat's maze built by the Dims. I gather they succumbed to the frustration of being on the outside and gave up the fight while mouthing the occasional conservative platitudes. The list is long but we still have a few fighters standing in the breach on behalf of America and Americans.
People are waking up.
November should be instructive, eh?
It wouls have to be “Rich Democrats”...they have most of the money in America!
On the other hand, Dodd may have shut down government borrowing as well! Since the government has to issue bonds for its borrowing, its bonds get rated as well. If the government can’t get ratings for its bonds, didn’t congress just screw itself?
Someone tell me if I’m wrong.
Glenn Beck channeled Boucheau yesterday. (Except for that part where he apologizes for being angry.)
A must see:
http://www.watchglennbeck.com/video/2010/july/glenn-beck-show-july-22-2010-big-brother-is-here/
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