Posts Tagged ‘special interests’

Bernie Sanders Says It Is Time To Break Up The Big Banks As They Are Nothing But Monopolies

Bernie Sanders Says It Is Time To Break Up The Big Banks As They Are Nothing But Monopolies

Courtesy of Tyler Durden

Dream Toys Announce The Official Christmas Top Toy Predictions

Paging Christine Varney. Finally, what Zero Hedge has been pounding the table on for months is starting to make it through to (some of) the ruling elite. In an interview with Dylan Ratigan, Bernie Sanders, who unfortunately is not quite representative of the prevailing DC groupthink yet, says: "it is not just a too big to fail problem, it is monopolistic control of the economy and the incredible concentration of ownership. If Teddy Roosevelt were here right now, the guy who broke up all the big special interests in his day: if he believed that two-thirds of the credit cards were being issued by four banks, does anyone think we should not be breaking these guys up."

He points out the following simple arguments for breaking up the big banks: 1) four largest banks issue two thirds of the credit cards, 2) they hold 50% of mortgages and 3) $7 trillion in assets (50% of GDP). One can extend these observations from the simple consumer facing side of the banking model, to the intrabanking world, where Goldman has a monopoly in virtually all fixed income and equity (including derivative) trading axes and has infinite visibility into market flow.

The argument for breaking them up is blatantly simple: to protect taxpayers against another TBTF episode, as well as to preempt  their concentration of ownership which means "unbelievable power and monopolistic influence over the whole economy."

Sanders, following in William Black’s footsteps, is also painfully blunt: "the issue is not whether Congress regulates Wall Street, it’s the degree to which Wall Street regulates Congress."

No matter what kind of reform you bring forth, if a BofA is about to teeter, and take with it a significant part of the economy and millions of jobs they are going to be bailed out. What you have to do is break them up today."

In conclusion Bernie sumarizes our current predicament perfectly: "Take a breath for a moment and think about where we’re at. You have a middle class collapsing, you have small and medium sized businesses desperately in need of affordable credit so they can expand and create jobs, they’re not getting that help. What you have is a Wall Street living in a parallel universe playing…
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DEEP THOUGHTS FROM BILL GROSS

DEEP THOUGHTS FROM BILL GROSS

Courtesy of The Pragmatic Capitalist

Deep thoughts on 2010 from PIMCO’s bond guru:

Quixotic journeys often make for great literature, but by definition are rarely productive. I am, after all, referring to windmills here – not their 21st century creation, but their 17th century chasing. Futility, not productivity, was the ultimate fate of Cervantes’ man from La Mancha. So it is with hesitation, although quixotic obsession, that I plunge headlong into a discussion of American politics, healthcare legislation, resultant budget deficits and – finally – their potential effect on financial markets. There will be windmills aplenty in the next few pages and not much good can come of these opinions or my tilting in their direction. Still, I mount my steed, lance in hand, and ride forward.

Question: What has become of the American nation? Conceived with the vision of liberty and justice for all, we have descended in the clutches of corporate and other special interests to a second world state defined by K Street instead of Independence Square. Our government doesn’t work anymore, or perhaps more accurately, when it does, it works for special interests and not the American people. Washington consistently stoops to legislate 10,000-page perversions of healthcare, regulatory reform, defense, and budgetary mandates overflowing with earmarks that serve a monied minority as opposed to an all-too-silent majority. You don’t have to be Don Quixote to believe that legislators – and Presidents – often do not work for the benefit of their constituents: A recent NBC News/Wall Street Journal poll reported that over 65% of Americans trust their government to do the right thing “only some of the time” and a stunning 19% said “never.” What most politicians apparently are working for is to perpetuate their power – first via district gerrymandering, and then second by around-the-clock campaigning financed by special interest groups. If, by chance, they’re ever voted out of office, they have a home just down the street – at K Street – with six-figure incomes as a starting wage.

What amazes me most of all is that politicians can be bought so cheaply. Public records show that combined labor, insurance, big pharma and related corporate interests spent just under $500 million last year on healthcare lobbying (not much of which went to politicians) for what is likely to be


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The Allure of Outsourcing Financial Regulation

The Allure of Outsourcing Financial Regulation

Courtesy of Jesse’s Café Américain

Obama AdministrationOne has to be fascinated with the proposal by the Obama Administration to effectively outsource the regulation of US markets and the protection of consumers to the Federal Reserve, an agency that is owned by the industry which it would be asked to regulate.

It is especially interesting given the recent history of the failure of that organization to do its job properly, failure to engage in open and transparent dialogue about its non-core (non-monetary) operations, and continuing resistance to taking direction from the government in matters related to fiscal and legislative policy that would fall under its regulatory purview while asserting its independence.

Its almost surreal. I cannot believe anyone is taking this proposal seriously.

There are three reasons why the Obama Administration is proposing it and the Congress is giving it serious consideration.

1. The special interests, the banks, who are significant donors to the Democratic and Republican parties would like to have it since they effectively own the Fed, and Wall Street likes no regulation better than self-regulation.

2. Government enjoys outsourcing its responsibilities to outside agencies like the Fed, because when the lapses and failures come, it gives them a great opportunity for finger pointing and hearings to chastise the party that failed, and shift the blame for the responsibility for the failure from themselves to someone outside their organization.

3. Larry Summers wants to be both the chairman of the Federal Reserve and of the SEC and a proposed Financial Consumer Protection Agency to attempt to maximize his ability to manipulate and control the financial system. And Larry does not work for you or your interests.

Would you like to have seen Alan Greenspan as not only the chairman of the Federal Reserve, but also the head of the SEC and the Consumer Protection Agency for financial products?

What is being proposed amounts to a financial Star Chamber. It makes the machinations behind the founding of the Federal Reserve in 1913 look tame by comparison.

Has the US a shred of common sense and regard for democratic principles left?

Photo: U.S. President Barack Obama (right) "meets" with speechwriter Cody Keenan, who dressed as a pirate for an Oval Office photo taken for use in the President’s humorous speech to the White House Correspondents Association dinner May 9, 2009. "But as
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Zero Hedge

China Coronavirus Outbreak Spreads; Hundreds Infected As Human-To-Human Transmission Confirmed

Courtesy of Zero Hedge. View original post here.

Health officials in Wuhan, China reported 139 new cases of a new mystery virus over the weekend, now rapidly spreading to other provinces and surrounding countries, reported CNN.

As of Monday morning, three people have died from the pneumonia-like illness, and globally there have been more than 200 reported cases, noted Reuters

Beijin...



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The Technical Traders

Using the copy-paste formula in the Forex market

Courtesy of Technical Traders

In Forex there are many techniques available to boost up the profit factors. However, as there are millions of people trying to make a profit it is not easy to get the right tricks. There are many brokers offering high leverage trading account to the interested traders. They also provide useful insight into the market so that the traders can make a decent profit. In fact, some brokers often sell signals to their clients so that they can start earning money in the early stage of their careers.

At present, this method has earned a huge following as many investors don’t like to spend time staring at the chart. In this article, we are going to try to bust the myth about this infamous technique...



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Phil's Favorites

The War on All Fact People

 

David Brin shares an excerpt from his new book on the relentless war against democracy and how we can fight back. You can also read the first, second and final chapters of Polemical Judo at David's blog Contrary Brin.

The War on All Fact People 

Excerpted from David Brin's new book, the beginning of chapter 5, Polemical Judo: Memes...



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Members' Corner

The War on All Fact People

 

David Brin shares an excerpt from his new book on the relentless war against democracy and how we can fight back. You can also read the first, second and final chapters of Polemical Judo at David's blog Contrary Brin.

The War on All Fact People 

Excerpted from David Brin's new book, the beginning of chapter 5, Polemical Judo: Memes...



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Chart School

SP500 Kitchin Cycle Review

Courtesy of Read the Ticker

The biggest known news date in the next 18 months is the US Election. The biggest unknown news date is when the US believes it is in a economic recession.

The Kitchin Cycle is still working.

We must conclude the major 900 period low is now in, and we are now in a up swing, which may top out ate 2020 or late 2021. Any future top out may only generate a 10% to 20% correction, of course this can be deemed very mild. This is expected, but the expected does always play out. 

Rolling the dice to get '7' does not always work. Post US elections seasonal's aligned with a poor start of the decade seasonal trends, add on high global recession risk, add on a stock market slump tends to occur in the years ending 9,1,2,3,4 (like 1973, 1...



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Insider Scoop

10 Biggest Price Target Changes For Friday

Courtesy of Benzinga

  • Citigroup lifted Caterpillar Inc. (NYSE: CAT) price target from $145 to $170. Caterpillar closed at $147.87 on Thursday.
  • UBS cut Twitter Inc (NYSE: TWTR) price target from $37 to $35. Twitter shares closed at $34.19 on Thursday.
  • Morgan Stanley boosted the price target for Yum! Brands, Inc. (NYSE: YUM) from $113 to $118. Yum! Brands closed at $102.16 on Thursday.
  • Jefferies lifted the price target on Ventas, Inc. (NYSE: ...


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Kimble Charting Solutions

Tesla About To Run Out Of Energy Here? Short-Term Peak Possible?

Courtesy of Chris Kimble

Tesla (TSLA) has been screaming higher of late, as very impressive gains have taken place.

Is Tesla about to run out of energy/take a break/experience some selling pressure? A unique price setup is in play, that bulls might want want to be aware of.

This chart applies Fibonacci to the 2016 lows and 2017 highs at each (1). The impressive rally of late has it testing its 161% extension level, based upon those price points.

At the same time, it is hitting its 161% extension level, it finds itself at the top of a 7-year rising channel, with momentum hitting the highest ...



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Lee's Free Thinking

Why Blaming the Repo Market is Like Blaming the Australian Bush Fires

 

Why Blaming the Repo Market is Like Blaming the Australian Bush Fires

Courtesy of  

The repo market problem isn’t the problem. It’s a sideshow, a diversion, and a joke. It’s a symptom of the problem.

Today, I got a note from Liquidity Trader subscriber David, a professional investor, and it got me to thinking. Here’s what David wrote:

Lee,

The ‘experts’ I hear from keep saying that once 300B more in reserves have ...



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Digital Currencies

Cryptos Have Surged Since Soleimani Death, Bitcoin Tops $8,000

Courtesy of ZeroHedge View original post here.

Bitcoin is up over 15% since the assassination of Iran General Soleimani...

Source: Bloomberg

...topping $8,000 for the first time since before Thanksgiving...

Source: Bloomberg

Testing its key 100-day moving-average for the first time since October...

...



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Biotech

Why telling people with diabetes to use Walmart insulin can be dangerous advice

Reminder: We are available to chat with Members, comments are found below each post.

 

Why telling people with diabetes to use Walmart insulin can be dangerous advice

A vial of insulin. Prices for the drug, crucial for those with diabetes, have soared in recent years. Oleksandr Nagaiets/Shutterstock.com

Courtesy of Jeffrey Bennett, Vanderbilt University

About 7.4 million people ...



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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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Promotions

Free eBook - "My Top Strategies for 2017"

 

 

Here's a free ebook for you to check out! 

Phil has a chapter in a newly-released eBook that we think you’ll enjoy.

In My Top Strategies for 2017, Phil's chapter is Secret Santa’s Inflation Hedges for 2017.

This chapter isn’t about risk or leverage. Phil present a few smart, practical ideas you can use as a hedge against inflation as well as hedging strategies designed to assist you in staying ahead of the markets.

Some other great content in this free eBook includes:

 

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About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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