Guest Posted May 16, 2012 Posted May 16, 2012 John Ransom Barack Obama went on the business talk show The View to talk about how banks need more stringent regulations on trading activities in light of trading losses at JP Morgan. Reports Reuters: "JPMorgan is one of the best managed banks there is. Jamie Dimon, the head of it, is one of the smartest bankers we got and they still lost $2 billion and counting," Obama said on ABC's "The View," according to a transcript released by the network. "We don't know all the details. It's going to be investigated, but this is why we passed Wall Street reform," Obama said. Well then I guess Obama’s version of Wall Street reform apparently isn’t working by Obama’s own working definition. Maybe the coffee klatch ladies at The View can help us formulate better bank regs. The can hardly do worse than Obama and the Democrats have done by passing Dodd-Frank- the most expensive legislation in the history of Main Street, after Obamacare. So what exactly has Obama’s signature Wall Street reform package, Dodd-Frank done? Supposedly it was passed to curb abuses in origination of consumer mortgages. But more importantly, it was passed to make sure that a bank failure did not involve the risk of failure in the entire financial system so that the government wouldn’t have to bail out the banks again. But as Obama himself admits, the Wall Street reform package that Democrats passed, and Obama signed, doesn’t do that. "This is the best, or one of the best managed banks. You could have a bank that isn't as strong, isn't as profitable making those same bets and we (the government) might have had to step in," Obama said according to Reuters. Even for a president, Obama’s a pretty shoddy economist- and that’s a pretty startling admission. Because while Wall Street reform that Obama talks about might be the most expensive legislation ever passed after Obamacare, it doesn’t even begin to address the issue of systemic failure in the banking industry- the very issue Wall Street reform was supposed to address. . In fact, because the federal government under Obama concentrated more assets in fewer banks through forcing banks like Bank of America to buy toxic assets like those from Countrywide Mortgage rather than allowing the market to do its proper job, bank failures have likely been postponed rather than averted. And to add insult to injury, the Obama administration then turned around and sued Bank of America for the mortgage practices of Countrywide, the very company the administration forced BofA to buy. To put the JP Morgan affair in proper context, he’s a clip from our bank expert Mark Calabria from Cato. http://finance.townhall.com/columnists/j...awed/page/full/ Quote
Woody Posted May 17, 2012 Posted May 17, 2012 I agree. Quote May we be one so that the world may be won. Christian from the cradle to the grave I believe in Hematology.
Moderators lazarus Posted May 17, 2012 Moderators Posted May 17, 2012 I agree. Do you think there should be more regulation of less. Republicans opposed Dodd-Frank. Quote Great spirits have always found violent opposition from mediocrities. The latter cannot understand it when a man does not thoughtlessly submit to hereditary prejudices but honestly and courageously uses his intelligence. Einstein
Dottie Posted May 18, 2012 Posted May 18, 2012 The whole thing to me, who has never studied economics, seems like a tempest in a teapot. I heard that JPMorgan/Chase is worth about 3 trillion dollars. So if they lost 2 billion dollars, that would be the equivalent of someone who had $3,000 in their pocket, losing $2. Is my math correct? Quote
Moderators lazarus Posted May 18, 2012 Moderators Posted May 18, 2012 The whole thing to me, who has never studied economics, seems like a tempest in a teapot. I heard that JPMorgan/Chase is worth about 3 trillion dollars. So if they lost 2 billion dollars, that would be the equivalent of someone who had $3,000 in their pocket, losing $2. Is my math correct? They are worth $189b. The loss affects, shareholders, pension funds, other banks. Quote Great spirits have always found violent opposition from mediocrities. The latter cannot understand it when a man does not thoughtlessly submit to hereditary prejudices but honestly and courageously uses his intelligence. Einstein
bonnie Posted May 18, 2012 Posted May 18, 2012 They are worth $189b. The loss affects, shareholders, pension funds, other banks. Government cannot regulate and guarantee results. Investing in anything is a gamble and risk,one people take voluntarily. No one is guaranteed X number of dollars,you gamble at your own risk. Now Obama seeks to save everyone from their own decisions and failures and punsih them when they succeed. Quote Everything you do is based on the choices you make. It's not your parents, your past relationships, your job, the economy, the weather, an argument, or your age that is to blame. You and only you are responsible for every decision and choice you make, period ... ... Wish more people would realize this. Quotes by Susan Gottesman
Guest Posted May 21, 2012 Posted May 21, 2012 Originally Posted By: lazarus They are worth $189b. The loss affects, shareholders, pension funds, other banks. Government cannot regulate and guarantee results. Investing in anything is a gamble and risk,one people take voluntarily. No one is guaranteed X number of dollars,you gamble at your own risk. Now Obama seeks to save everyone from their own decisions and failures and punsih them when they succeed. You're exactly right! Quote
Moderators lazarus Posted May 22, 2012 Moderators Posted May 22, 2012 Government cannot regulate and guarantee results. Investing in anything is a gamble and risk,one people take voluntarily. You don't believe in bank regulation? Quote Great spirits have always found violent opposition from mediocrities. The latter cannot understand it when a man does not thoughtlessly submit to hereditary prejudices but honestly and courageously uses his intelligence. Einstein
bonnie Posted May 22, 2012 Posted May 22, 2012 Originally Posted By: bonnie Government cannot regulate and guarantee results. Investing in anything is a gamble and risk,one people take voluntarily. You don't believe in bank regulation? You are assuming something I did not say and ignoring what I did. If I have our SS checks deposited in a saving account I can only anticipate the current rate of interest.The bank cannot guarantee me a higher rate in a few months. If I deposit in my checking account I should be able to write checks to that amount,nothing more. There will come a time and I believe soon that no matter how much is regulated that will end as well. I cannot take my money and decide to invest and risk it for a higher return or a guarantee that I won't lose what I have invested.A government cannot dictate how well any market will do or guarantee against loss. No business can guarantee lifetime employment or a guarantee on a investment. If the money is stolen that is a different matter. When we purchased our current home in 1998 at a reduced value we anticipated the rise in value.It went artifically high and we made the decision to sell. My husband had some serious health issues so we backed off.Our home today is worth little more than we paid for it. Big deal,our loss,that is life. A acquaintance of ours worked for a fledging company,showed promise but had many rough times. The company offered stock in the company in lieu of overtime pay.A couple of employees gambled and accepted realizing they very well could be donating their time.After several years the company really took off and made the two employee's very wealthy men.The others of course had a little jealousy problem and tried to sue the employer when he refused to sell more stock in the company.Tough bounce,they did not want the risk of failure and are still working for wages. Don't invest money you cannot afford to lose Quote Everything you do is based on the choices you make. It's not your parents, your past relationships, your job, the economy, the weather, an argument, or your age that is to blame. You and only you are responsible for every decision and choice you make, period ... ... Wish more people would realize this. Quotes by Susan Gottesman
Guest Posted May 26, 2012 Posted May 26, 2012 You are assuming something I did not say and ignoring what I did.If I have our SS checks deposited in a saving account I can only anticipate the current rate of interest.The bank cannot guarantee me a higher rate in a few months. If I deposit in my checking account I should be able to write checks to that amount,nothing more. There will come a time and I believe soon that no matter how much is regulated that will end as well. I cannot take my money and decide to invest and risk it for a higher return or a guarantee that I won't lose what I have invested.A government cannot dictate how well any market will do or guarantee against loss. No business can guarantee lifetime employment or a guarantee on a investment. If the money is stolen that is a different matter. When we purchased our current home in 1998 at a reduced value we anticipated the rise in value.It went artifically high and we made the decision to sell. My husband had some serious health issues so we backed off.Our home today is worth little more than we paid for it. Big deal,our loss,that is life. A acquaintance of ours worked for a fledging company,showed promise but had many rough times. The company offered stock in the company in lieu of overtime pay.A couple of employees gambled and accepted realizing they very well could be donating their time.After several years the company really took off and made the two employee's very wealthy men.The others of course had a little jealousy problem and tried to sue the employer when he refused to sell more stock in the company.Tough bounce,they did not want the risk of failure and are still working for wages. Don't invest money you cannot afford to lose Well said bonnie. Funny how I only hear the sound of crickets in here now. lol Quote
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