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Obama's "Reform" Would Shift Wall Street Wealth To Chicago
HUDSON VALLEY PATRIOTS blog ^ | April 22, 2010 | Michael R. Long, NYS Coservative Party

Posted on 04/22/2010 12:34:54 PM PDT by Brad from Tennessee

What do New Yorkers call the so-called Obama Financial Services Reform? "The Great Chicago Bank Heist of the 21st Century!" Under the guise of protecting Main Street and the middle-class, President Obama and his Chicago political machine (Emanuel, Axelrod, Durbin, Jarrett) are secretly preparing to shift thousands of jobs from New York City to Chicago - along with billions of dollars of tax revenue. The Chicago political gang's first step in trying to move the financial center of our country and the financial capital of the world from the Big Apple to the Windy City will begin with this so-called "reform." And worse yet, our New York Democratic Congressional delegation led by Senators Chuck Schumer and Kirsten Gillibrand, are standing by letting it happen even while welcoming President Obama to New York City today.

In a nutshell, if the current "reform" legislation passes as is, the Chicago Mercantile Exchange, run by President Obama's buddies, would immediately establish an almost complete monopoly on the exchanges needed to comply with the legislation dealing with the trillions of dollars of derivatives transactions each year. . .(more)

(Excerpt) Read more at hudsonvalleymoms.ning.com ...


TOPICS: Editorial
KEYWORDS: bho44; bhofascism; corruption; democrats; dictator; economy; liberalfascism; marxisttakeover; obama; sorospuppet
The Chicago power structure has a short leash on Obama. After linking scroll down.
1 posted on 04/22/2010 12:34:54 PM PDT by Brad from Tennessee
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To: Brad from Tennessee

Just like he’s done with everything else since he’s gotten into power -

“shift” the wealth to his cronies.


2 posted on 04/22/2010 12:35:49 PM PDT by MrB (The difference between a (de)humanist and a Satanist is that the latter knows who he's working for.)
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To: Brad from Tennessee
Obummer's "Reform" Would Shaft Wall Street and Chicago Cronies,

Obummer Stolen Wealth To be Secretly Stashed in Kenya

3 posted on 04/22/2010 12:38:52 PM PDT by bunkerhill7
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To: Brad from Tennessee

Are there enough Prostitutes in Chicago, or will the ones in NY have to relocate, and will that be a tax deductible expense?

Maybe Obama can appoint a hooker czar.


4 posted on 04/22/2010 12:39:39 PM PDT by UCANSEE2 (The Last Boy Scout)
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To: MrB

“’shift’ the wealth to his cronies.”

And if he has to pay off some poeple whom he doesn’t like in the bargain, so what? There’s plenty more. Just raise taxes or invent a new one, like a carbon tax or a VAT.

At this point, it’s a kleptocracy.


5 posted on 04/22/2010 12:43:55 PM PDT by swain_forkbeard (Rationality may not be sufficient, but it is necessary.)
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To: Brad from Tennessee
The idea of shifting OTC credit derivatives to a central exchange is, in my opinion, misguided. Had OTC credit derivatives been at a central exchange during the meltdown, that exchange would probably have gone under just like AIG did. It is better to have risk spread out among many, many separate firms.

The problem with our current system is that Washington has been on a policy of pushing large banks to merge with each other, increasingly concentrating the entire global financial system into effectively 3 or 4 banks. This is a very, very bad idea.

So why is Washington doing this? Very simple: If you can get the financial system to the point where the vast majority of the industry is concentrated in a single firm, then that single firm will be the country's de facto central planner, and Washington will have instituted centrally-planned socialism through financial fiat.

6 posted on 04/22/2010 12:44:38 PM PDT by Thane_Banquo (Mitt Romney: He's from Harvard, and he's here to help.)
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To: Brad from Tennessee

Chicago is a silly little city compared to New York. The “5-Families” will dispose of Barky and the Chicago “Outfit” and be back in New York in time for coffee and cannoli.


7 posted on 04/22/2010 12:49:17 PM PDT by SonOfDarkSkies (I never saw a wild thing sorry for itself... - D.H. Lawrence)
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To: Brad from Tennessee

Probably was the center of wealth back in Capone’s day too, so it fits.


8 posted on 04/22/2010 12:49:30 PM PDT by throwback ( The object of opening the mind, as of opening the mouth, is to shut it again on something solid)
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To: Thane_Banquo
[If you can get the financial system to the point where the vast majority of the industry is concentrated in a single firm. . .]

The retail side of that would be Wal-Mart.

9 posted on 04/22/2010 12:53:13 PM PDT by Brad from Tennessee (A politician can't give you anything he hasn't first stolen from you.)
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To: Brad from Tennessee

Swapping one set of gangsters for another.


10 posted on 04/22/2010 12:55:36 PM PDT by Mark was here (Fighting for freedom is never easy, especially when your enemies are merely fighting for free stuff.)
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To: Brad from Tennessee

There is power and money behind Obama. At what point will others with power and money begin to see that they are going to be taken along with the rest of the “little people”.

It will be like the gang wars of the 30s. If so many innocent victims would not be hurt in the cross fire I would cheer both sides on and let them destroy each other.

Obama as the Godfather, only he isn’t, he is just the front man for someone else.

All this talk about violence from the right may be setting up something so that the right gets blamed for it. We are living is some very dangerous times.

There does not seem to be any check or balance with our government. November can not get there soon enough for me.


11 posted on 04/22/2010 12:56:28 PM PDT by CIB-173RDABN
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To: Brad from Tennessee

maybe another use for Valeria’s property since they did not get the Olympics. Now I understand why Rahm wants to be mayor...............


12 posted on 04/22/2010 12:56:43 PM PDT by blueyon (The U. S. Constitution - read it and weep)
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To: Brad from Tennessee

Well, New York voted for Obama. Hey New Yorkers - how’s the hopey changey stuff working out for ya? LOL

Fletcher J


13 posted on 04/22/2010 12:59:46 PM PDT by Fletcher J
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To: MrB

To many of us, none of this is a surprise. It was just so hard to believe we were right back in 2008. It seemed so unthinkable. But then, if someone had told the average German, at the beginning of Hitler’s rise to power, that it would result in all the things it did, they would have called you crazy, even though the evidence was all there.


14 posted on 04/22/2010 1:01:43 PM PDT by RobRoy (The US Today: Revelation 18:4)
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To: Brad from Tennessee
The Chicago power structure has a short leash on Obama. After linking scroll down.

There are dozens of subheads. Which one?

15 posted on 04/22/2010 1:09:54 PM PDT by lentulusgracchus
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To: Thud

Financial reform is a NY City to Chicago financial industry tax base heist?


16 posted on 04/22/2010 1:34:28 PM PDT by Dark Wing
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To: Brad from Tennessee
Scroll down to what?
17 posted on 04/22/2010 1:37:03 PM PDT by Excellence (Meet your new mother-in-law, the United States Government.)
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To: SonOfDarkSkies

I think Chicago is the center of RIP power. This region is fully empowered to direct national events, with huge chunks of money. Money flowing back to USA, from foreign entities, a portion of many trillion dollars of USA wealth transferred to OPEC and China over some scores of years.


18 posted on 04/22/2010 1:41:22 PM PDT by veracious
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To: Dark Wing

Among other things. IMO the real reason was hinted at in SonOfDarkSkies’ No. 7. Sending the stuff to Chicago, to get campaign contributions from Chicago, creates an opportunity to send it back to NYC upon the payment of further tribute in the form of NYC campaign contributions. Then it can be sent to LA, go back to NYC, then to Atlanta and back to NYC, etc.


19 posted on 04/22/2010 2:14:21 PM PDT by Thud
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To: hoosiermama

Ping.


20 posted on 04/22/2010 2:23:36 PM PDT by Army Air Corps (Four fried chickens and a coke)
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To: Mark was here
Here is where you are off. NYC is super liberal and big Govt, but they run a clean ship for the most part. Never any major probes other than the occasional hooker. Chicago is extremely corrupt. So much so that there are rarely any attempts to bother correcting the abuses. Remember that NYC has elected real leaders like Rudy in the past and Pete King is a stand up man. There are no such counterparts in Chitown. The financial houses will become unregulated piggy banks for the machine.
21 posted on 04/22/2010 2:28:40 PM PDT by Lazlo in PA
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To: Excellence

[Scroll down to what?]

After you hit the link you scroll down to the next to the last item—that is the rest of Long’s editorial. There’s no headline on it. Sorry I couldn’t find the original which I figured would be at the NYS Conservative website but I didn’t find it.


22 posted on 04/22/2010 3:11:25 PM PDT by Brad from Tennessee (A politician can't give you anything he hasn't first stolen from you.)
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To: lentulusgracchus

See Post 22.


23 posted on 04/22/2010 3:13:24 PM PDT by Brad from Tennessee (A politician can't give you anything he hasn't first stolen from you.)
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To: lentulusgracchus; Excellence
Here’s a very interesting read: The Great Chicago Bank Heist of the 21st Century by Michael R. Long, Chairman of the NYS Conservative Party

What do New Yorkers call the so-called Obama Financial Services Reform? “The Great Chicago Bank Heist of the 21st Century!” Under the guise of protecting Main Street and the middle-class, President Obama and his Chicago political machine (Emanuel, Axelrod, Durbin, Jarrett) are secretly preparing to shift thousands of jobs from New York City to Chicago - along with billions of dollars of tax revenue. The Chicago political gang’s first step in trying to move the financial center of our country and the financial capital of the world from the Big Apple to the Windy City will begin with this so-called “reform.” And worse yet, our New York Democratic Congressional delegation led by Senators Chuck Schumer and Kirsten Gillibrand, are standing by letting it happen even while welcoming President Obama to New York City today.

In a nutshell, if the current “reform” legislation passes as is, the Chicago Mercantile Exchange, run by President Obama’s buddies, would immediately establish an almost complete monopoly on the exchanges needed to comply with the legislation dealing with the trillions of dollars of derivatives transactions each year. It is estimated that the Chicago Mercantile Exchange would benefit immediately with over $1 billion in additional revenue due to this heist in the name of “reform” (perhaps the Obama SEC should investigate this deal.)

Currently, most of these derivative transactions are processed through New York-based banks or financial firms with significant trading operations in New York City. These transactions generate approximately $28 billion in annual profits of which billions of taxes are paid to New York City and New York State. They employ thousands of persons and donate to our local charities and little leagues. This also generates hundreds of millions of dollars of additional revenue for smaller banks, brokerages and other businesses that feed off the financial sector. If Obama’s bank heist legislation is passed, the New York-based exchanges would not have enough time to set up the operations necessary to accommodate the new rules and hence the Chicago Mercantile Exchange would establish itself as the center of most of these transactions. The way this business works, once you have an “open interest” in one exchange, you keep most of your business with that exchange (to offset margin requirements); so once that is established it is virtually impossible for it to ever be moved.

This business will be forever moved from New York City to Chicago and with it many financial institutions would move more of their operations to Chicago as well. It is conceivable that one day even the stock markets could move to Chicago.

This bill is a job stimulus bill for Chicago and a job killer for New York City. Why can’t Senators Schumer and Gillibrand create a level-playing field for New Yorkers? Senators Schumer and Gillibrand, along with the rest of the Democratic Congressional delegation, continue to kowtow to President Obama and his Chicago political gang instead of standing up and fighting on behalf of New Yorkers! That’s their job and if they continue to prove they aren’t prepared to do their job, then New Yorkers are going to shift their jobs to someone who will stand up and fight for them in November.

This will be the largest transfer of wealth from one city to another in world history. Imagine what would happen to New York City and New York State if Chicago became the financial center of the United States and the financial capital of the world. If President Obama and his buddies at the Chicago Mercantile Exchange have their way, you won’t have to imagine too hard - this will become the Obama legacy on New York, otherwise known as the Great Chicago Bank Heist of the 21st Century.

24 posted on 04/22/2010 3:18:42 PM PDT by Brad from Tennessee (A politician can't give you anything he hasn't first stolen from you.)
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To: Thane_Banquo
The idea of shifting OTC credit derivatives to a central exchange is, in my opinion, misguided.

One of the major problems with OTC credit derivatives is that without some way of telling what bets a company has accepted, there's no way of knowing whether it will have sufficient funds to pay them.

Suppose I tell someone I'll pay him $1,000,000 if the April 23 2010 Illinois Pick-4 evening drawing comes up 3-7-7-7 if he buys a $75 ticket. I have assets of $10,000,000. Should the person regard that offer as a good deal? What if I'd already had the same offer, with the same number, accepted by 999 people?

The fact that the risk posed by all of my customers is strongly correlated (they'll either all win or all lose) might seem to make things dangerous for me, but provided I have a good exit strategy it actually works hugely to my advantage since it means there's a 99.99% chance I won't have to pay anything, and a 0.01% chance I'll end up paying a fraction of what I really owe.

25 posted on 04/22/2010 4:02:30 PM PDT by supercat (Barry Soetoro == Bravo Sierra)
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To: supercat

As someone who has been involved in trading OTC derivatives (though not credit derivatives), I can say that usually the firms who trade them have to post margin with the broker. And the brokers are, in theory, highly capitalized and are expected to hedge the position until they lay it off in an opposite transaction with another party.

So in your case, they might have the same deal with 999 people, but then they have the opposite deal with another 999 people, but with a few dollars difference in payouts that constitutes their spread for making a market. They should only be market-makers. In that case, the individual broker-dealer works in the same way as an organized exchange.

AIG was neither hedging nor truly engaging in market-making. They had some truly stupid people running the financial products division who had no idea what they were trading, nor the risks and probabilities involved. The idiots ignored all the warnings from their risk managers and mathematicians. They were the only big player to fall apart from CDS trading, and only then because Lehman went bankrupt.

I think one solution is to set capitalization requirements, and to fashion them in such a way that encourages the broker-dealers to act as market-makers, buying and selling to facilitate trade, and hedging whatever risk remains, thus acting as intermediaries rather than taking huge positions.

A better, libertarian solution is simply to break up the huge banks into about 30 or more smaller banks and let them run themselves the way they see fit. Some will run well. Some will act stupidly If that happens, no one cares if one of them is behaving stupidly, because the market could survive a handful of bankruptcies. Moreover, these bankruptcies would be more likely to happen at different times, instead of all at once.


26 posted on 04/22/2010 4:20:53 PM PDT by Thane_Banquo (Mitt Romney: He's from Harvard, and he's here to help.)
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To: Thane_Banquo
And the brokers are, in theory, highly capitalized and are expected to hedge the position until they lay it off in an opposite transaction with another party.

Without knowing the value of the bets the broker might have to pay off, it's impossible to know whether capitalization is adequate.

So in your case, they might have the same deal with 999 people, but then they have the opposite deal with another 999 people, but with a few dollars difference in payouts that constitutes their spread for making a market. They should only be market-makers. In that case, the individual broker-dealer works in the same way as an organized exchange.

The profits from that sort of arrangement are pretty limited. Much bigger profits can be had if one lays long-shot bets without bothering to balance them. Once the bets have gone beyond one's ability to pay, any further bets one lays on the same outcome are pure profit.

AIG was neither hedging nor truly engaging in market-making. They had some truly stupid people running the financial products division who had no idea what they were trading, nor the risks and probabilities involved.

Are you sure? From what I know of their behavior, it's consistent with a perfectly rational (though thoroughly unethical) strategy if they expected to be able to welsh on their bets without personal consequence.

I think one solution is to set capitalization requirements...

How does one do that without a means of ensuring that the assets that are backing the $1,000,000 I'm supposed to receive if I win aren't also promised to 999 other people?

Moreover, these bankruptcies would be more likely to happen at different times, instead of all at once.

The fact that many things collapsed simultaneously wasn't a bug--it was a feature to maximize the likelihood that the amount of stuff collapsing would either be very small (so those laying bets wouldn't have to pay much) or very big (so those laying bets would only have to pay a small fraction of what they owed).

27 posted on 04/22/2010 4:36:14 PM PDT by supercat (Barry Soetoro == Bravo Sierra)
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To: Brad from Tennessee

Thank you for posting this.


28 posted on 04/23/2010 10:35:46 AM PDT by Excellence (Meet your new mother-in-law, the United States Government.)
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