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Skeptical Debunker

Gary Gensler's Conversion to Financial Reformer - NYTimes.com - 0 views

  • Today, he is emerging as one of the nation’s archreformers, pushing to impose some of the most stringent new financial regulations in history. And as the head of the Commodity Futures Trading Commission, the leading contender to oversee the complex derivatives contracts that played a central role in the financial crisis and, in turn, the Great Recession, he is in a position to influence the outcome. It may seem an unlikely conversion, but it is one that has won the approval of Brooksley E. Born, of all people, a former outspoken head of the commission. She sounded alarms more than a decade ago about the dangers hiding in the poorly understood derivatives market and was silenced by the same Washington power brokers that counted Mr. Gensler as a member. Mr. Gensler opposed Ms. Born, according to people who worked at the commission in the 1990s, and in 2000 played a significant role in shepherding through Congress deregulation measures that led to explosive growth of the over-the-counter derivatives market. That was then. These days, Ms. Born is convinced of Mr. Gensler’s reformist zeal, as he takes on Wall Street in what is becoming one of the fiercest battles over regulation in the postcrisis era. “I think he is doing very well,” she said in an interview. “He certainly seems to be committed to robust oversight of derivatives and limiting excessive speculation and leverage.” The proposals championed by Mr. Gensler, if adopted by Congress, would substantially alter what is now a largely unregulated market in over-the-counter derivatives, financial instruments used by companies and investors to protect themselves and bet on moves in variables, like interest rates or currencies, and to speculate. The proposals include forcing the big banks that sell derivatives to conduct their trades in the open on public exchanges and clear them through central clearinghouses, so that any investor can see the prices that dealers charge their customers. Today, those transactions are bilateral and private.
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    For 18 years, Gary G. Gensler worked on Wall Street, striking merger deals at the venerable Goldman Sachs. Then in the late 1990s, he moved to the Treasury Department, joining a Washington establishment that celebrated the power of markets and fought off regulation at almost every turn.
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    Maybe he has "SEEN THE LIGHT" (had an almost "religious" conversion to the benefits of regulation). Then again, maybe his old employer (Goldman Sachs) - having become the "biggest and baddest" in the regulation-less free-for-all (including getting bailout funds through AIG for credit-default-swap "insurance" on derivatives) - wants to "cement" their position with regulation preventing any other party from doing what they did (and he is willing to help them in that regard)!?
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    Maybe he has "SEEN THE LIGHT" (had an almost "religious" conversion to the benefits of regulation). Then again, maybe his old employer (Goldman Sachs) - having become the "biggest and baddest" in the regulation-less free-for-all (including getting bailout funds through AIG for credit-default-swap "insurance" on derivatives) - wants to "cement" their position with regulation preventing any other party from doing what they did (and he is willing to help them in that regard)!?
Muslim Academy

Urdu Language - 0 views

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    Urdu is not a basic language it is a derived language, actually it is the mixture of many other basic and derived languages like Arabic, Turkish, Persian and Hindi and even there are some words in Urdu which are borrowed from English. The term Urdu was derived from a Turkish word "Ordo", which means camp, army or group. The Urdu language was developed between the Muslim soldiers of the Mughals armies, these soldiers originally belonged to different civilizations and they were Turks, Arabs, Pathans, Persians, Rajputs, Jats, Afghans, Balochis and Punjabis. These soldiers lived together for many years of their lives to fight against their common enemy during which they used to interact with each other by communicating in their respective dialects, which gradually merged into each other and evolved into the present form of Urdu. It is due to this reason that Urdu was first known as "Lashkari Zaban" or the language of the army, which was later changed to "Urdu-e-Muallah" meaning the exalted army which was given by the great Shah Jahan, who was a Mughal Emperor. "Rekhta" meaning scattered was another name used for this language until the present name Urdu came into use.
thinkahol *

HOLY BAILOUT - Federal Reserve Now Backstopping $75 Trillion Of Bank Of Ameri... - 0 views

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    This story from Bloomberg just hit the wires this morning.  Bank of America is shifting derivatives in its Merrill investment banking unit to its depository arm, which has access to the Fed discount window and is protected by the FDIC. What this means for you is that when Europe finally implodes and banks fail, U.S. taxpayers will hold the bag for trillions in CDS insurance contracts sold by Bank of America and JP Morgan.  Even worse, the total exposure is unknown because Wall Street successfully lobbied during Dodd-Frank passage so that no central exchange would exist keeping track of net derivative exposure.
Muslim Academy

Response - A Response to Islamophobia World - 0 views

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    Islam is a balanced religion. It believes in respecting all sects, all cultures and all civilizations. All laws relate to Islam are meant for Muslim benefits . It is true that in the recent years, Islam has become a victim of extremism. The purpose of Islam has never been to spread Islamophobia. Islamic ideas have been exploited to give them the shape of Islamophobia. Islam does not define a mosque and state as distinctive. A mosque is there, to provide a forum to the Muslim to unite and pray. The gesture is to promote congregational prayers, which is also an aspect of Christianity. Islam does not believe in forcing its concepts upon Non-Muslims. Unethical Jehad has never been an Islamic thought. It is just that some extremist groups are trying to manipulate Islam and use the Ideals to their benefit. Islam believes in respecting all religions. That is what the Holy Prophet (PBUH) taught the Muslims. Islam does not preach unkindness to any. May it be your enemy or slave. These are not the aspects of Jihad. A woman can legally have a physical relationship with her husband only. It is definitely no concept of Jihad. Islam believes in respecting a woman, not exploiting her dignity and respect. Islam does not allow illegal confiscation of property during Jihad. Islam does not promote destruction. Taxes does not mean degrading. Taxes are defined to establish a system and maintain a proper division of wealth. If Christian and jews had to pay Jiziah, Muslims had to pay Zakat .Brutality is not a custom of Islam. A Muslim derives so much contentment from Islamic values, that they do not need to run away from the religion. Anything , which drives a person from sanity is not liked in Islam. The reason being that all wrongs can be committed, when a person is drunk and is not in a normal state of mind. This is human nature, that we cannot drive contentment until we avenge someone for the bad they have done to us. However Islam prefers forgiveness. Sometimes a harsh punishment
thinkahol *

Misregulation Aiding Plunder of Fish, Other Resources - IPS ipsnews.net - 0 views

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    WASHINGTON, Jun 2, 2010 (IPS) - The resources society derives from nature have been horribly mismanaged and this will lead to the children of the world's poorest people remaining in poverty, according to Paul Collier. The easiest of these resources to regulate is fish, but we have not even managed to get that right, he said.
Skeptical Debunker

Bankers winning financial reform battle - Answer Desk- msnbc.com - 0 views

  • Proponents of comprehensive regulatory reform hope for sweeping measures to protect consumers from predatory lending, rein in high-stakes Wall Street trading in arcane derivatives, boost capital requirements for banks that want to bet big with depositors' money and spread some regulatory sunshine on the dark pools of the “shadow banking system” that caught regulators flat-footed when the market spiraled into the abyss in the fall of 2008. “We cannot afford to let the status quo continue,” Sheila Bair, head of the Federal Deposit Insurance Corp., told a meeting of business economists in Washington. The final law is still in doubt. Sen. Christopher Dodd, D-Conn., has pressed for reform during a year of intensely partisan bickering. On Friday, Dodd — a lame duck who announced his retirement after disclosures that he accepted favorable terms from subprime lender Countrywide Financial — claimed that the Senate Banking Committee he chairs was “days away” from wrapping up a bill. Any resolution faces a major political hurdle that has drawn the most public attention: a proposal to create a new agency to protect consumers from predatory lending and other abusive financial practices. While the "systemic risks" to the financial system may represent a bigger threat in dollar terms, voters might be more focused on the consumer impact.Dodd said that’s not hard to understand.“The subject matter of derivatives and swaps and the issue of systemic risk and too-big-to- fail seem somewhat removed from the general public,” he told CNBC after the Senate compromise was reached. “Watching my credit card go to 32 percent rates and huge fees, watching prepayment penalties on mortgages, these are things that millions of people understand.”
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    As Congress this week inches toward a new set of rules to avert another global financial collapse, it is focused on two conflicting goals: reforming the banking system to protect consumers while still giving lenders the freedom to take risks. So far the score looks like: Bankers 1, Consumers 0. More than a year after a wave of risky mortgage bets brought Wall Street to its knees, banks and other financial institutions are still playing by the same rules that got them into the mess.
thinkahol *

Rule by Rentiers - NYTimes.com - 0 views

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    What lies behind this trans-Atlantic policy paralysis? I'm increasingly convinced that it's a response to interest-group pressure. Consciously or not, policy makers are catering almost exclusively to the interests of rentiers - those who derive lots of income from assets, who lent large sums of money in the past, often unwisely, but are now being protected from loss at everyone else's expense.
thinkahol *

They Only Have 400 Votes | MichaelMoore.com - 0 views

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    Michael Moore's comments today delivered and relayed at the "We Are One" rally at the State Capitol in Honolulu: Greetings! I want to thank you for turning out today to make your voices heard -- and they ARE heard, even across ocean and land. Today, hundreds of thousands of Americans are joining with you to honor Dr. King by standing up for working people all over America. It was what he was doing in Memphis when he was killed 43 years ago today, supporting sanitation workers on strike.   Today everywhere is Memphis, and it's not just sanitation workers being attacked. It's teachers and firefighters and social workers -- yes, all those greedy public workers who caused the Great Recession we are in! It was the greedy teachers who caused the crash on Wall Street! It was the greedy firefighters who sent millions of jobs overseas! It was the greedy social workers who insisted that GE pay no taxes and that CEOs should make 500 times what the average employee makes! No, my friends, it wasn't! It was the top 1% of the country who did this. THEY brought on the mortgage crisis. THEY made off with billions of dollars from our economy. THEY have systematically destroyed the middle class. And THEY have bought and sold the very people elected to represent us! America is not broke! It's just that the wealthy have absconded with the money! They've removed it from circulation and left us begging for school supplies and fire trucks and libraries. Even the Wall Street Journal admits that the uber-rich are currently just sitting on almost $2 trillion of cash. They're not creating jobs with it. They're not re-circulating it. They're just hanging on to it hoping to make more money off it by continuing their casino games in the stock market, the derivatives market, the credit default swaps market and any other crazy scheme they can invent. This has to stop. But it won't stop unless we make it stop. 400 wealthy Americansnow have more wealth than 150 million Americans COMBINED!  But what
thinkahol *

Lifting the Veil: Obama and the Failure of Capitalist Democracy {Full Film} -... - 0 views

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    This film explores the historical role of the Democratic Party as the "graveyard of social movements", the massive influence of corporate finance in elections, the absurd disparities of wealth in the United States, the continuity and escalation of neocon policies under Obama, the insufficiency of mere voting as a path to reform, and differing conceptions of democracy itself.  Original interview footage derives from Noam Chomsky, Michael Parenti, Michael Albert, John Stauber (PR Watch), Sharon Smith (Historian), William I. Robinson (Editor, Critical Globalization Studies), Morris Berman (Author, Dark Ages America), and famed black panther Larry Pinkney. 
Levy Rivers

Joseph A. Palermo: Defeating the Bailout Looks Like Another Republican Ploy - 0 views

  • House Republican leaders did not put much pressure on their rank-and-file members to back the rescue package." John Boehner, Roy Blunt and other "leaders" of the House Republicans thought they could strike a public pose as if they really cared about the credit seizure that looms over the country while secretly hoping to pin the bill's passage on Nancy Pelosi, Steny Hoyer, (and by association, Barack Obama).
  • They wanted Speaker Pelosi to pass the bill without much Republican cover so they could tell their constituents that the Democrats were just "picking the taxpayers' pockets again."
  • I agree with the critical flaws in the bill that Dennis Kucinich articulated this morning on Amy Goodman's show, Democracy Now! I don't believe in a government welfare program for Wall Street swindlers who had the audacity to pump up the paper value of one of their hidden, unregulated derivatives, "credit default swaps," from $631 billion in 2001 to $62 trillion in 2008! I think some people should be indicted; some people should go to jail.
  • ...3 more annotations...
  • Whenever you hear the word "bi-partisan," even during the waning hours of the Bush years, it usually means something very bad is about to happen.
  • All of a sudden I hear Bush Administration mouthpieces such as the billionaire Henry Paulson, who in the past have told us that we are all on our own and we shouldn't rely on government for anything, speak about "our" financial markets as if working people have been the ones swapping "collateralized debt obligations" and "hybrid debt instruments."
  • It is my hope we can seize the opportunity this crisis presents, hold President Obama's feet to the fire, and construct a new social compact in this country, a New New Deal.
Skeptical Debunker

Marshall Auerback: Memo to Greece: Make War Not Love with Goldman Sachs - 0 views

  • We know that the Obama administration will not go after the banksters that created this global financial calamity. It has been thoroughly co-opted by Wall Street's fifth column, who hold most of the important posts in the administration. Europe has even more at stake and has shown somewhat more willingness to take action. Perhaps our only hope for retribution lies there.
  • Some might believe the term "banksters" is too mean. Surely Wall Street was just doing its job -- providing the financial services wanted by the world. Yes, it all turned out a tad unfortunate but no one could have foreseen that so many of the financial innovations would turn into black swans. And hasn't Wall Street learned its lesson and changed its practices? Fat chance. We know from internal emails that everyone on Wall Street saw this coming -- indeed, they sold trash assets and placed bets that they would crater. The crisis was not a mistake -- it was the foregone conclusion. The FBI warned of an epidemic of fraud back in 2004 -- with 80% of the fraud on the part of lenders. As Bill Black has been warning since the days of the Saving and Loan crisis, the most devastating kind of fraud is the "control fraud," perpetrated by the financial institution's management. Wall Street is, and was, run by control frauds. Not only were they busy defrauding the borrowers, like Greece, but they were simultaneously defrauding the owners of the firms they ran. Now add to that list the taxpayers that bailed out the firms. And Goldman is front and center when it comes to bad apples. Lest anyone believe that Goldman's executives were somehow unaware of bad deals done by rogue traders, William Cohan reports that top management unloaded their Goldman stocks in March 2008 when Bear crashed, and again when Lehman collapsed in September 2008. Why? Quite simple: they knew the firm was full of toxic waste that it would not be able to continue to unload on suckers -- and the only protection it had came from AIG, which it knew to be a bad counterparty. Hence on March 19, Jack Levy (co-chair of M&As) sold over $5 million of Goldman's stock and bet against 60,000 more shares; Gerald Corrigan (former head of the NY Fed who was rewarded for that tenure with a position as managing director of Goldman) sold 15,000 shares in March; Jon Winkelried (Goldman's co-president) sold 20,000 shares. After the Lehman fiasco, Levy sold over $6 million of Goldman shares and Masanori Mochida (head of Goldman in Japan) sold $56 million worth. The bloodletting by top management only stopped when Goldman got Geithner's NYFed to produce a bail-out for AIG, which of course turned around and funneled government money to Goldman. With the government rescue, the control frauds decided it was safe to stop betting against their firm. So much for the "savvy businessmen" that President Obama believes to be in charge of Wall Street firms like Goldman.
  • From 2001 through November 2009 (note the date -- a full year after Lehman) Goldman created financial instruments to hide European government debt, for example through currency trades or by pushing debt into the future. But not only did Goldman and other financial firms help and encourage Greece to take on more debt, they also brokered credit default swaps on Greece's debt-making income on bets that Greece would default. No doubt they also took positions as the financial conditions deteriorated-betting on default and driving up CDS spreads. But it gets even worse: An article by the German newspaper, Handelsblatt, ("Die Fieberkurve der griechischen Schuldenkrise", Feb. 20, 2010) strongly indicates that AIG, everybody's favorite poster boy for financial deviancy, may have been the party which sold the credit default swaps on Greece (English translation here). Generally, speaking, these CDSs lead to credit downgrades by ratings agencies, which drive spreads higher. In other words, Wall Street, led here by Goldman and AIG, helped to create the debt, then helped to create the hysteria about possible defaults. As CDS prices rise and Greece's credit rating collapses, the interest rate it must pay on bonds rises-fueling a death spiral because it cannot cut spending or raise taxes sufficiently to reduce its deficit. Having been bailed out by the Obama Administration, Wall Street firms are already eyeing other victims (and for allowing these kinds of activities to continue, the US Treasury remains indirectly complicit, another good reason why one shouldn't expect any action coming out of Washington). Since the economic collapse is causing all Euronations to run larger budget deficits and at the same time is raising CDS prices and interest rates, it is easy to pick off nation after nation. This will not stop with Greece, so it is in the interest of Euroland to stop the vampires now. With Washington unlikely to do anything to constrain Goldman, it looks like the European Union, which is launching a major audit, just might banish the bank from dealing in government debt. The problem is that CDS markets are essentially unregulated so such a ban will not prevent Wall Street from bringing down more countries-because they do not have to hold debt in order to bet against it using CDSs. These kinds of derivatives have already brought down an entire continent -- Asia -- in the late 1990s , and yet authorities are still standing by and basically doing nothing when CDSs are being used again to speculatively attack Euroland. The absence of sanctions last year, when we had a chance to deal with this problem once and for all, has simply induced even more outrageous and fundamentally anti-social behavior. It has pitted neighbor against neighbor -- with, for example, Germany and Greece lobbing insults at one another (Greece has requested reparations for WWII damages; Germany has complained about subsidizing what it perceives to be excessive social spending in Greece). Of course, as far as Greece goes, the claim now is that these types of off balance sheet transactions in which Goldman and others engaged were not strictly "illegal" under EU law. But these are precisely the kinds of "shadow banking transactions" that almost brought down the global financial system 18 months ago. Literally a year after the Lehman bankruptcy -- MONTHS after Goldman itself was saved from total ruin, it was again engaging in these kinds of deals. And it wasn't exactly a low-level functionary or "rogue trader" who was carrying out these transactions on behalf of Goldman. Gary Cohn is Lloyd "We're doing God's work" Blankfein's number 2 man. So it's hard to believe that St. Lloyd did not sanction the activities as well in advance of collecting his "modest" $9m bonus for last year's work.
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    Ok, if a literal armed attack on Goldman is too far-fetched, then go after the firm using the full force of the regulatory and legal systems. Close the offices and go through the files with a fine-tooth comb. Issue subpoenas to all non-clerical staff for court appearances. Make the internal emails public. Post the names of all managers and traders on Interpol. Arrest anyone who tries to board a plane, train, or boat; confiscate their passports; revoke their visas and work permits; and put a hold on their bank accounts until culpability can be assessed. Make life at least as miserable for them as it now is for Europe's tens of millions of unemployed workers.
Anna Molly

America's Ten Most Corrupt Capitalists | Economy | AlterNet - 1 views

  • Federal Reserve chairman backed all of Rubin's favorite deregulatory plans,
  • crush an effort by Brooksley Born to regulate derivatives in 1998
  • Greenspan went to bat for politically connected Savings & Loan titan Charles Keating
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