Skip to main content

Home/ Socialism and the End of the American Dream/ Contents contributed and discussions participated by Gary Edwards

Contents contributed and discussions participated by Gary Edwards

Gary Edwards

Banksters seek to legalize autodialers calling your cellphone | Ubergizmo - 0 views

  •  
    Banksters want to legalize for cellphones the currently illegal robocalling telemarketing techniques of the past - this time for cellphones.  Incredibly the Banksters are trying to argue that this will improve customer services!  Yeah, just like illegal robosigning document mills improve Bankster foreclosure services for their customers. excerpt: The new bill which has been dubbed the Mobile Informational Call Act of 2011, is seeking to make legal the use of autodialers to call cellphones. It seems that those who are favoring this new bill come from the banking industry, and they are claiming that they will use this new bill to pass along new information to their customers in a timely manner. They are also saying that since about 40% of Americans use their cellphones as their primary or only means of communication, this would be a good way to reach out to their customers.
Gary Edwards

Bankster Roubini Attacks Austrian Economists : EconomicPolicyJournal.com: - 1 views

  • Austrians view the IMF etc. as bankster enforcers, who exist for one reason and one reason only, to ensure that the banksters are paid. Austrians view the current increased taxes, as part of austerity programs in PIIGS countries, with horror, and as the state taking by force from the people and handing the funds to the banksters.
  • Rather than banksters getting paid, Austrians would rather see the the PIIGS countries go into bankruptcy, default on their debt and free the people.
  • Treasury default is the Austrian solution, not phony "austerity" programs of tax reform, aka tax increases, and government programs that are "paid for" by shuffling imaginary cuts in to later years.
  • ...2 more annotations...
  • The same view holds with regard to the Austrian position on US Treasury debt.
  • Austrians aren't in favor the current size of government, anywhere. It's not about austerity, but about eliminating the government money grab on behalf of banksters.
  •  
    Cut to the chase explanation of Austrian economics:  Banksters and their IMF collection arm want to roll over the sovereign debt of EU nations (PIIGS), subsidized by tax paying citizens.  The Banksters want the Sovereign debt of a few nations "nationalized" so that the loses are shared by the entire EU - and taken off the Bankster books. The Austrian economics handbook says that these Sovereign debters should go into default immediately, and declare bankruptcy.  The Banksters should take the hit for making the bad loans in the first place.  No bailouts. 75% of German tax payers support the Austrian plan!
Gary Edwards

Our Lost America - A Collection Of Bankster & Liberty Quotes - 1 views

  •  
    Wonderful collection of Bankster, Federal Reserve, Constitution and Liberty quotes from great Americans and international thinkers and doers of note.  Thanks Marbux!  This is excellent.
Gary Edwards

California and Bust - by Michael Lewis | Vanity Fair - 0 views

  •  
    Incredibly well written article.  Simply awesome and totally engaging piece of well researched writing and story telling.  But wow what a sad story.  Still, if you want to understand California, and perhaps America, this is the living truth.  Sadly. intro excerpt: The smart money says the U.S. economy will splinter, with some states thriving, some states not, and all eyes are on California as the nightmare scenario. After a hair-raising visit with former governor Arnold Schwarzenegger, who explains why the Golden State has cratered, Michael Lewis goes where the buck literally stops-the local level, where the likes of San Jose mayor Chuck Reed and Vallejo fire chief Paige Meyer are trying to avert even worse catastrophes and rethink what it means to be a society.
Gary Edwards

The Feds Criminalize Ordinary Life - 0 views

  • Ordinary life should not be treated as a criminal conspiracy.
  • Former U.S. attorney generals Ed Meese and Richard Thornburgh asked Congress last winter merely to ensure that any bills carrying criminal penalties be referred to the Judiciary Committee for review.
  • To their great discredit, the House GOP leadership failed to adopt such a rule.
  • ...2 more annotations...
  • In truth, Congress should do far more.
  • It should undertake a comprehensive review of the federal criminal code – and perform some radical liposuction on it.
  •  
    Looks like the issue of Civil Liberties and the Obama Gestapo Government are getting traction in the main stream media.  So far the incredible increase in Obammunism's crushing Federal Regulations has been focused on the economic destruction caused.  The flip side of the Obammunism coin is that of Civil Liberties and the 10th Amendment getting similarly crushed. excerpt: Finally, some front-page attention to a major, and frightening, American problem! Tuesday's Wall Street Journal featured an in-depth look at how federal laws increasingly apply criminal penalties for violations involving no mens rea, roughly translated as a "guilty mind." The stricture against criminal penalties for unwitting violations is an age-old, bedrock legal principle. Alas, in today's dangerously armed, bureaucratic super-state, ancient legal principles go by the wayside when politicians pretend to be "tough on crime" and when officious civil "servants" indulge their fetishes for power. U.S. governments at every level these days are prone to "overcriminalization," which means turning ordinary activity into violations of the law, turning what should be civil violations into criminal ones, and applying penalties far harsher than should be warranted. On the mens rea front, the Journal explains: "In recent decades, Congress has repeatedly crafted laws that weaken or disregard the notion of criminal intent. Today not only are there thousands more criminal laws than before, but it is easier to fall afoul of them…. Today, there are an estimated 4,500 crimes in federal statutes, plus thousands more embedded in federal regulations."
Gary Edwards

President Obama has been a disaster for civil liberties - latimes.com - 1 views

  • Historically, this country has tended to correct periods of heightened police powers with a pendulum swing back toward greater individual rights. Many were questioning the extreme measures taken by the Bush administration, especially after the disclosure of abuses and illegalities.
  • Candidate Obama capitalized on this swing and portrayed himself as the champion of civil liberties.
  • However, President Obama not only retained the controversial Bush policies, he expanded on them.
  • ...7 more annotations...
  • Obama failed to close Guantanamo Bay as promised.
  • He continued warrantless surveillance and military tribunals that denied defendants basic rights.
  • He asserted the right to kill U.S. citizens he views as terrorists
  • His administration has fought to block dozens of public-interest lawsuits challenging privacy violations and presidential abuses.
  • Ironically, had Obama been defeated in 2008, it is likely that an alliance for civil liberties might have coalesced and effectively fought the government's burgeoning police powers.
  • A Gallup poll released this week shows 49% of Americans, a record since the poll began asking this question in 2003, believe that "the federal government poses an immediate threat to individuals' rights and freedoms."
  • the election of Barack Obama may stand as one of the single most devastating events in our history for civil liberties.
  •  
    With the 2012 presidential election before us, the country is again caught up in debating national security issues, our ongoing wars and the threat of terrorism. There is one related subject, however, that is rarely mentioned: civil liberties. Protecting individual rights and liberties - apart from the right to be tax-free - seems barely relevant to candidates or voters. One man is primarily responsible for the disappearance of civil liberties from the national debate, and he is Barack Obama. While many are reluctant to admit it, Obama has proved a disaster not just for specific civil liberties but the civil liberties cause in the United States.
Gary Edwards

Land Destroyer: Naming Names: Your Real Government - 1 views

  •  
    This is your real government; they transcend elected administrations, they permeate every political party, and they are responsible for nearly every aspect of the average American and European's way of life. When the "left" is carrying the torch for two "Neo-Con" wars, starting yet another based on the same lies, peddled by the same media outlets that told of Iraqi WMD's, the world has no choice, beyond profound cognitive dissonance, but to realize something is wrong. What's wrong is a system completely controlled by a corporate-financier oligarchy with financial, media, and industrial empires that span the globe. If we do not change the fact that we are helplessly dependent on these corporations that regulate every aspect of our nation politically, and every aspect of our lives personally, nothing else will ever change. The following list, however extensive, is by far not all-inclusive. However after these examples, a pattern should become self-evident with the same names and corporations being listed again and again. It should be self-evident to readers of how dangerously pervasive these corporations have become in our daily lives. Finally, it should be self-evident as to how necessary it is to excise these corporations from our lives, our communities, and ultimately our nations, with the utmost expediency.
Gary Edwards

Doug Casey Answers The Hard Questions About Hard Times - Casey Research - 1 views

  •  
    No Holds Bared Capitalism  .... Mr. Casey of Casey Research recommends that the USA immediately default on the national debt; bring home all military troops immediately and close oversees military bases;  Close the Federal Reserve!  Move to gold/silver backed currency.  Abolish praetorian federal agencies - immediately.  The rich are in position to bribe and elect toady politicians.  the socialist policies cement the poor and middle class to the bottom.  These programs are designed to keep them poor and dependent.  The middle class saves in dollars, and those savings are being systematically destroyed by the enormous debt of social, military and regulatory spending that is infused with corruption from top to bottom.   Financial advice to the middle class?  Get into GOLD and other hard assets.  Cut back standard of living before inflation and unsustainable government programs and promises cuts it back for you. Is Doug long on US equities and assets?  GOLD!  It's the dollar that is being destroyed.  Stocks are very expensive now.  Casey is thinking of buying USA real estate.  Not Bonds.  Even at $1800 per oz, Gold is still good.  Mining stocks are cheap relative to GOLD, but watch for bubble in these stocks.  Life changing moment: 1971 - Harry Brown's book "How to Profit from the coming Devaluation".  Buy GOLD.  "Crisis Investing" book by Casey in 1978.  Advice?  Skip college.  Minds cluttered with false concepts and a ton of debt.  
Gary Edwards

Stop the Fed Takeover of the Internet! Citizens Petition to stop Obama and the FCC - 0 views

  •  
    The Issue:  President Obama and his liberal cohorts are set to takeover the Internet beginning November 20 unless freedom-loving Americans demand this illegal assault on Free Speech in America end. Back on December 21, 2009, a Federal Communications Commission (FCC) power-grab, illegally imposed strict, job-killing restrictions on the Internet. The move was no doubt fueled by Tea Party successes, and a growing fear among liberals that conservatives needed to be silenced. That said, the FCC move wasn't widely reported. In fact, many are unsure as to what the new Net Neutrality rules actually mean. What is certain, however, is that in seizing the Internet Obama has also muzzled the greatest mechanism of growth in our history (under the guise of promoting "freedom" for all), and taken one giant step closer to controlling the unfettered access to news and information that we read. The Action:  Without the support of the American people and requiring no votes in Congress, the so-called Net Neutrality rules didn't require any Congressional action. Now with the federal government seizing control, Grassfire Nation is moving quickly to amass at least 150,000 petitions demanding Congress to reverse the Net Neutrality ruling through legislation.  
Gary Edwards

The Looting Of America: The Federal Reserve Made $16 Trillion In Secret Loans To Their ... - 0 views

  • If the federal government shut down the Federal Reserve system, started issuing debt-free money and established a new system based on sound financial principles we might have a chance of turning this thing around.
    • Gary Edwards
       
      Presidents Lincoln, Kennedy and Reagan all thought they could issue silver certificates from the US Treasury.  Only Reagan lived to tell about his once and future ambition, but even that was a close call. 1/4" from his heart to be exact.
    • Gary Edwards
       
      An interesting side note is that Sadam Hussein, Hitler, and Quadafi shared more than just tyrannical blood lust.  They each defied the world order of international Banksters by threatening to create hard currencies.  Sadam wanted to be paid for his oil in Euro's denominated in gold and silver equivalencies rather than dollar denominated contractual agreements.  Meaning, whatever the prive of gold/silver is on a given day instead of whatever the dollar contracts specify.  Hitler ended the Wiemar fiat currency and moved to a hard Deutch Mark based on Bankster gold used to lauch the national socialist movement (the Banksters also famously funded Lenin's international communist revolution).  And it's well known that Quadafi tried to convince the congress of African nations to move off the dollar/euro fiat currencies to a hard gold/silver backed African currency initially launched through the trade of oil, diamonds and yellow cake commodities. One thigns for sure.  The Banksters are very good at stirring nationalist sentiment, and using these militaries to defeat those who would defy their control of the worlds money.
  • “”If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation,the banks and corporations that will grow up around them (around the banks), will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered.” – Thomas Jefferson
Gary Edwards

OpEdNews - Article: How the Greek economy and IMF might help banksters -- and defeat Ob... - 0 views

  • Something else to consider:   our Federal Reserve is heavily invested in those European banks, and has, in a very real sense, 'loaned' them hundreds of billions dollars of our tax money.   And so, if they go, we go.   In other words, American taxpayers will once again be responsible for "taking up the slack."
    • Gary Edwards
       
      The first time ever July 2011 GAO audit of the Federal Reserve has $3.08 TRILLION dollars being transferred to European Banksters in 2009-2010.  The Quantitative Twist Program announced by head Bankster Bernake in early September 2011 has these same Euro Banksters cued up for trillions more.  This cash infusion from American taxpayers bails out the Euro Banksters without solving the soveriegn debt problems that are the real issue.  Imagine if the bailout went to pay off the sovereign debt?  No restructuring of existing loans.  Just a simple $3.08 Trillion @ Ford Corp interest rate of .89%, coupled with a 30% reduction in government and government pension funds.  Why bail out failing Banksters who made bad loans and really bad decisions, when the problem is failing nations?
Gary Edwards

911: Lloyds of London Insurance brokers have sued Citigroup-AMEC et al. in respect of t... - 1 views

  • We allege the Citigroup-AMEC partners sabotaged the diesel generators to feed fires lit by arsonists on the 11th, 12th or 13th floors of WTC7 where the Securities & Exchange Commission lost between 3,000 to 4,000 files. The SEC files contained evidence of insider trading by Citigroup-AMEC investment bank partners in the shares of initial public offerings during the high-tech boom. The House Financial Services Committee was seeking information about the treatment Citigroup's Salmon Smith Barney investing banking division may have given WorldCom executives. Salomon had offices in 7 World Trade Center and Citigroup says back-up tapes of corporate emails from September 1998 through December 2000 were stored at the building and destroyed in 9/11. Citigroup subsequently paid $2.65 billion to the settlement class which purchased WorldCom securities during the period from April 1999 through June 2002. www.thestreet.com/markets...36925.html www.citigroup.com/citigro...40510a.htm
  • At 5:20 p.m. on 9/11, 7 World Trade Center collapsed in its own footprint at a speed slightly slower than free fall under gravity in a manner consistent with a controlled demolition. Molten steel and partially evaporated steel members were found in the debris pile of WTC #1, 2 and 7. The thermal signature of 32 hot spots, 5 days and 10 days after the collapse, is consistent with all the buildings being rigged for demolition with an incendiary such as thermite.
  • We allege that the Citigroup-AMEC partnership now conspired to remove and destroy evidence of arson before filing bogus property insurance claims in an arrangement with Larry Silverstein and Silverstein Properties, including a claim for a double payment for the destruction of the Twin Towers. "Griffin quotes court documents to the effect that Silverstein had only $14 million invested in the insurance deal for the Twin Towers (compared to 50 times as much by his [off-book] lenders) through limited liability investment vehicles."
  •  
    Incredible.  In 2006 Lloyd's of London sued a group comprised of Citigroup, AMEC and GMAC for a "concealed demolition" conspiracy resulting in insurance fraud.  This is complicated, but the key assertion is that World Trade Center building #1, #2, and #7 were rigged for demolition prior to the 9/11/01 attack.  The claim also alleges the involvement of Larry Silverstein, who had purchased these buildings a few months prior to the 9/11 attack, and made the subsequent and fraudulent insurance claim. Based on the Lloyd's of London report: "9/11 - A Citigroup-AMEC insurance fraud on Lloyd's of London?" .. by David Hawkins, Foundation Scholar, Cambridge University, Founder of the Citizen's Association of Forensic Economists at Hawks' CAFE .
Gary Edwards

FBI found direct ties between 9/11 hijackers and Saudis living in Florida; Co... - 0 views

  •  
    By Anthony Summers and Dan Christensen, BrowardBulldog.org United Airlines Flight 175 hits the World Trade Center's south tower Just two weeks before the 9/11 hijackers slammed into the Pentagon and World Trade Center, members of a Saudi family abruptly left their luxury home near Sarasota, leaving a brand new car in the driveway, a refrigerator full of food, fruit on the counter - and an open safe in the master bedroom. In the weeks to follow, law enforcement agents not only discovered the home was visited by vehicles used by the hijackers, but phone calls were linked between the home and those who carried out the death flights - including leader Mohamed Atta - in discoveries never before revealed to the public. Ten years after the deadliest attack of terrorism on U.S. soil, new information has emerged that shows the FBI found troubling ties between the hijackers and residents in the upscale community in southwest Florida, but the investigation wasn't reported to Congress or mentioned in the 9/11 Commission Report. Former U.S. Sen. Bob Graham, the Florida Democrat who cochaired the bipartisan congressional Joint Inquiry into the attacks, said he should have been told about the findings, saying it "opens the door to a new chapter of investigation as to the depth of the Saudi role in 9/11. … No information relative to the named people in Sarasota was disclosed."
Gary Edwards

Former Sen. Bob Graham calls for new 9/11 investigation | 911Blogger.com - 1 views

  •  
    Former Democratic Senator Bob Graham on Monday called on the U.S. government to reopen its investigation into 9/11 after a report found that links between Saudi Arabia and the hijackers were never disclosed by the FBI to the 2002 joint Congressional intelligence committee investigating the attacks. "In the final report of the congressional inquiry, there was a chapter related primarily to the Saudi role in 9/11 that was totally censored, every word of the chapter has been withheld from the public," Graham said on MSNBC's The Dylan Ratigan Show. "Some of the other questions we ought to be asking are if we know that the Saudis who lived in San Diego and now apparently in Sarasota received substantial assistance, what about the Saudis who lived in Phoenix, Arizona? Or Arlington, Virginia? … What was happening in those places?" "I believe these are questions for which there are definitive answers, but the American people and largely their elected representatives have been denied that information." Watch video, courtesy of MSNBC, below:
Gary Edwards

Unelected, Unaccountable, Unrepentant: The Federal Reserve Is Using Your Money To Bail ... - 0 views

  •  
    Summary of the Federal Reserve activities. Some highlights include the $16.1 Trillion dollar bailout of international banks and Wall Street Banksters. $3.08 Trillion went to foreign banksters. And now the Federal Reserve is queing up another massive bailout of European banksters. The debt keeps piling up, the value of the dollar continues to go down, and world's economy languishes. These guys suck. Interestingly, the recent publication of the Ron Suskind book, "Confidence Men", based on hundreds of hours of first hand interviews with Obama and members of his administration, included some eye opening exchanges revealing that Treasury Secretary Timmy Geitner defied Obama to implement Federal Reserve policies and initiatives. Incredible.
Gary Edwards

Stansberry's Investment Advisory - 0 views

    • Gary Edwards
       
      excerpt: THE FOLLOWING IS A FICTIONAL DRAMATIZATION OF A PRESS CONFERENCE BY PRESIDENT BARACK OBAMA, ADDRESSING THE AMERICAN PEOPLE, FROM THE EAST ROOM OF THE WHITE HOUSE Set in December 2012, this speech details what we believe The President might say on the day America's foreign creditors finally stop lending us money, and demand repayment for our country's debts. The largest debts EVER accumulated in the history of mankind. intro: Barack Obama Impersonator Records Shocking "Speech"  It may be fiction for now... But this eye-opening "speech," recently recorded by a Barack Obama impersonator, is sending shock waves through the financial community. It could forever change how you think about our country and your safety. 
  •  
    Comment:  While researching the September 2008 financial collapse, a freind introduced me to Porter Stansberry (thanks Marux!).  I've been following Porter through the Daily Crux Report ever since, and, as extreme as his opinions appear, time and again he has proven to be drop dead right.  This latest presentation summarizes Porter's thinking and is buttressed with facts and quotes.  The first part of the presentation is a fictional press conference dated December 2012.  This about 15 minutes.  Porter then follows that with near 45 minutes of facts and quotes woven into a comprehensive summary of how we got into this mess and what the possible outcomes going forward.   The basics are simple enough: the combination of Government borrowing, spending, printing and regulating is killing the dollar.  Our currency is very special in that it's the world's reserve currency; a good fortune that has unfortunately resulted in our spending and borrowing way more than we produce.  On top of this dilemma, the financial crisis of 2008 resulted in the world's Banksters offloading their $Trillions of debt and losses onto the US Treasury; the taxpayers.  So now we have the taxpayers holding the debt of an out of control socialist government spending, borrowing, and regulating us into the dirt regulating.  And, these same taxpayers picking up all the losses of the World's most greedy and evil criminals - the Banksters.  At the center of it all is the Federal Reserve, a world Bankster cartel in control of our currency, and printing it out like there's no tomorrow.  Porter talks about that tomorrow, and what it might look like if we the people do not take back our government and our currency.   excerpt: THE FOLLOWING IS A FICTIONAL DRAMATIZATION OF A PRESS CONFERENCE BY PRESIDENT BARACK OBAMA, ADDRESSING THE AMERICAN PEOPLE, FROM THE EAST ROOM OF THE WHITE HOUSE Set in December 2012, this speech details what we believe The President might say on the day America's fore
Gary Edwards

The PJ Tatler » Still the Best Political-Economic Video Ever: Keynes vs. Hayek - 0 views

  •  
    Priceless!  Still the Best Political-Economic Video Ever, there are two  Keynes vs. Hayek rap videos.  The second one is the best!  On point, on target, clever and enjoyable.
Gary Edwards

Works and Days » Zero Jobs 101 - the Psychology of Alienating Employers - 0 views

  • Here is the lament I heard: the near $5 trillion in borrowing in just three years, the radical growth in the size of the federal government and its regulatory zeal, ObamaCare, the Boeing plant closure threat, the green jobs sweet-heart deals and Van Jones-like “Millions of Green Jobs” nonsense, the vast expansion in food stamps and unemployment pay-outs, the reversal of the Chrysler creditors, politically driven interference in the car industry, the failed efforts to get card check and cap and trade, the moratoria on new drilling in the Gulf, the general antipathy to new fossil fuel exploitation coupled with new finds of vast new reserves, the new financial regulations, an aggressive EPA oblivious to the effects of its advocacy on jobs, the threatened close-down of energy plants, the support for idling thousands of acres of irrigated farmland due to environmental regulations, the constant talk of higher taxes, the needlessly provocative rhetoric of “fat cat”, “millionaires and billionaires,” “corporate jet owners,” etc. juxtaposed, in hypocritical fashion, to Martha’s Vineyard, Costa del Sol, and Vail First Family getaways — all of these isolated strains finally are becoming a harrowing opera to business people.
  • “This bunch doesn’t like me much and I’m going to hunker down, hoard my cash, and sit out the next year and a half until they are gone.”
  • And the administration’s efforts to counteract these symbols and impressions by courting a high-profile, hyper-capitalist Warren Buffett, or a GE CEO Jeffrey Immelt have proven even more ironic:
  • ...3 more annotations...
  • the former calls for higher taxes that his firms seek to avoid, or targets his post-mortem wealth to (more efficient?) private foundations that rob the Treasury of billions in lost inheritance taxes, or knows higher taxes won’t much matter to his tens of billions in net worth;
  • the latter’s firm paid no 2010 U.S. income taxes on many of its profits and outsourced jobs overseas.
  • Borrow another $5 trillion?
  •  
    Nobody lays it out so quickly and too the point as VDH..... awesome summary of sweeping reach.  I've been hesitant to apply the term "crony capitalism" to Obama even though his Bankster relationships and continuing bailouts scream loudly.  It seems to me that the term "crony socialism" better fits the full range of fascist power brokering Obama engages in.  Big Government, Big Banksters, Big Unions, Big Media, Big Education.  If anything, Obammunism is BIG! VDH excerpt: Here is the lament I heard: the near $5 trillion in borrowing in just three years, the radical growth in the size of the federal government and its regulatory zeal, ObamaCare, the Boeing plant closure threat, the green jobs sweet-heart deals and Van Jones-like "Millions of Green Jobs" nonsense, the vast expansion in food stamps and unemployment pay-outs, the reversal of the Chrysler creditors, politically driven interference in the car industry, the failed efforts to get card check and cap and trade, the moratoria on new drilling in the Gulf, the general antipathy to new fossil fuel exploitation coupled with new finds of vast new reserves, the new financial regulations, an aggressive EPA oblivious to the effects of its advocacy on jobs, the threatened close-down of energy plants, the support for idling thousands of acres of irrigated farmland due to environmental regulations, the constant talk of higher taxes, the needlessly provocative rhetoric of "fat cat", "millionaires and billionaires," "corporate jet owners," etc. juxtaposed, in hypocritical fashion, to Martha's Vineyard, Costa del Sol, and Vail First Family getaways - all of these isolated strains finally are becoming a harrowing opera to business people.
Gary Edwards

Carter: Economic Stagnation Explained, at 30,000 Feet - Bloomberg - 0 views

  • Party Doesn’t Matter
  • “I don’t understand why Washington does this to us," he resumes. By "us," he means people who run businesses of less- than-Fortune-500 size. He tells me that it doesn’t much matter which party is in office. Every change of power means a whole new set of rules to which he and those like him must respond. ‘‘I don’t understand,” he continues, “why Washington won’t just get out of our way and let us hire.”
  • Thinking of Selling
  • ...5 more annotations...
  • No `Installed Base'
  • `Invisible
  • “I know there are things the government has to do. But they need to find a way to do them without people like me having to bump into a new regulation every time we turn a corner.” He reflects for a moment, then finds the analogy he seeks. “Government should act like my assistant, not my boss.”
  • For medium-sized firms like his, however, there is little wiggle room to absorb the costs of regulatory change. Because he possesses neither lobbyists nor clout, he says, Washington doesn’t care whether he hires more workers or closes up shop.
  • Recessions have complex causes, but, as the man on the aisle reminded me, we do nothing to make things better when the companies on which we rely see Washington as adversary rather than partner.
  •  
    Simplicity.  Who would have guessed it's this easy!  It turns out that Obammunism is a political formula of Spend Big, Borrow Big, Regulate with a heavy boot, Take care of your big big campaign contributors (Call it Fascism or Crony Politics - it's still the same criminal corruption of using power to enrich yourself and your friends at the expense of your countrymen). excerpt from a conversation on a plane flight that takes place between an ivy league elitist and a SMB business owner: Demand for his product is up. But he still won't hire. "Why not?" "Because I don't know how much it will cost," he explains. "How can I hire new workers today, when I don't know how much they will cost me tomorrow?" He's referring not to wages, but to regulation: He has no way of telling what new rules will go into effect when. His business, although it covers several states, operates on low margins. He can't afford to take the chance of losing what little profit there is to the next round of regulatory changes. And so he's hiring nobody until he has some certainty about cost.
Gary Edwards

AEI - The Error at the Heart of the Dodd-Frank Act - 0 views

  • The underlying assumption of the Dodd-Frank Act (DFA) is that the 2008 financial crisis was caused by the disorderly bankruptcy of Lehman Brothers.
  • This is evident in the statements of officials and the principal elements of the act, which would tighten the regulation of large financial institutions to prevent their failing, and establish an "orderly resolution" system outside of bankruptcy if they do.
  • The financial crisis, however, was caused by the mortgage meltdown, a sudden and sharp decline in housing and mortgage values as a massive housing bubble collapsed in 2007. This scenario is known to scholars as a "common shock"—a sudden decline in the
  • ...6 more annotations...
  • 27 million loans—were subprime or otherwise weak and risky loans.
  • The reason for this was the US government's housing policy, which—in the early 1990s—began to require that government agencies and others regulated or controlled by government reduce their mortgage underwriting standards so borrowers who had not previously had access to mortgage credit would be able to buy homes. The government-sponsored enterprises Fannie Mae and Freddie Mac, the Federal Housing Administration, and banks and savings and loan associations (S&Ls) subject to the Community Reinvestment Act were all required to increase their acquisition of loans to homebuyers at or below the median income in their communities. Often, government policies required Fannie, Freddie, and the others to acquire loans to borrowers at or below 80 percent, and in some cases 60 percent, of median income.
  • Sometimes it is argued that the Troubled Asset Relief Program (TARP) prevented more failures. That seems highly unlikely. The first funds were made available under TARP on October 28, 2008, about six weeks after the panic following Lehman's failure. By that time, any firm that had been mortally wounded by Lehman's collapse would have collapsed itself. Moreover, most of the TARP funds were quickly repaid by the largest institutions, and many of the smaller ones, only eight months later, in mid-June 2009. This is strong ¬evidence that the funds were not needed to cover losses coming from the Lehman bankruptcy. If there were such losses, they would still have been embedded in the balance sheets of those institutions. If the funds were needed at all—and many of the institutions took them reluctantly and under government pressure—it was to restore investor confidence that the recipients were not so badly affected by the common shock of the decline in housing and mortgage values that they could not fund orderly withdrawals, if necessary. However, even if we assume that TARP funds prevented the failure of some large financial institutions, it seems clear that the underlying cause of each firm's weakness was the decline in the value of its MBS holdings, and not any losses suffered as a result of Lehman's bankruptcy.
  • This analysis leads to the following conclusion. Without a common shock, the failure of a single Lehman-like firm is highly unlikely to cause a financial crisis. This conclusion is buttressed by the fact that in 1990 the securities firm Drexel Burnham Lambert—then, like Lehman, the fourth largest securities firm in the United States—was allowed to declare bankruptcy without any adverse consequences for the market in general. At the time, other financial institutions were generally healthy, and Drexel was not brought down by the failure of a widely held class of assets. On the other hand, in the presence of a common shock, the orderly resolution of one or a few Lehman-like financial institutions will not prevent a financial crisis precipitated by a severe common shock.
  • In effect, by giving the government the power to resolve any financial firm it believes to be failing, the act has added a whole new policy objective for the resolution of failing firms. Before Dodd-Frank, insolvency law embodied two basic policies—retain the going concern value of the firm and provide a mechanism by which creditors could realize on the assets of an insolvent firm that cannot be saved.
  • DFA will have important adverse effects on ¬insolvency law.
  •  
    The underlying assumption of the Dodd-Frank Act (DFA) is that the 2008 financial crisis was caused by the disorderly bankruptcy of Lehman Brothers. This is evident in the statements of officials and the principal elements of the act, which would tighten the regulation of large financial institutions to prevent their failing, and establish an "orderly resolution" system outside of bankruptcy if they do. The financial crisis, however, was caused by the mortgage meltdown, a sudden and sharp decline in housing and mortgage values as a massive housing bubble collapsed in 2007. This scenario is known to scholars as a "common shock"-a sudden decline in the value of a widely held asset-which causes instability or insolvency among many financial institutions. In this light, the principal elements of Dodd-Frank turn out to be useless as a defense against a future crisis. Lehman's bankruptcy shows that in the absence of a common shock that weakens all or most financial institutions, the bankruptcy of one or a few firms would not cause a crisis; on the other hand, given a similarly severe common shock in the future, subjecting a few financial institutions to the act's orderly resolution process will not prevent a crisis. Apart from its likely ineffectiveness, moreover, the orderly resolution process in the act impairs the current insolvency system and will raise the cost of credit for all financial institutions. 
« First ‹ Previous 721 - 740 of 1106 Next › Last »
Showing 20 items per page