LA Time Editorial 9-9-10, Banking on 30/10
I agree with the Editorial when compared with my understanding of the book:
“The Big Short” by Michael Lewis.
The page numbers I use below are based on the book’s hard cover version, copyright 2010, First Edition.
Editorial, first paragraph:
Obama idea: Obama to create a national transportation infrastructure bank ...
I agree with the transportation bank idea. Except the term "Bank" should not be used. It should be called something that does NOT have any rules or regulations or controls already in place. I think we must stop Global financial regulators like the International Swaps and Derivatives Association (ISDA) from having controls of the rules in the World Bond Market Banking System. Thus NOT the term "Bank"! See “The Big Short”, page 48, second paragraph. Find the book at Amazon.com where you can read any part of any page. Also read what other people think of the book. The book was on the New York Times best sellers list for over 2 months.
Example, call the Infrastructure bank YWCI (Yes We Can Investments) Like that idea?
“Big Short” Page, 48:
International Swaps and Derivatives Association (ISDA) has the "Investment Power" of formalizing the terms of new securities / Bonds.
“Big Short” Page 49:
“The ISDA agreement took months of haggling among (International) lawyers and traders from the big Wall Street firms, who would run the market.” and on page 59 it is written, "The loans were structured to go bad."
“Big Short” Page 62:
US Treasury Bonds for example, is part of the MOST CORRUPT of all, the Bond Market securities because:
“Bond salesmen, say and do anything without fear that they’d be reported to some authority.”
“Bond traders, could exploit inside information without worrying that they would be caught.”
“Bond technicians, could dream up ever more complicated securities without worrying too much about government regulation, one reason why so many derivatives had been derived, one way or another, from bonds.”
The foxes (ISDA) are not only guarding the hen house, the foxes had the task of formalizing the terms in which the hens slept outside. The hen house was also designed by the foxes and by the way, was designed to fall apart.
And now the dumb ass American hens as we should be called are having the same type foxes / ISDA regulators AGAIN formalize the terms. I can say this because of story in LA Times, 9-11-10, page B1, Official Global Bank Regulators meet in Swiss city of Basel, (this 9-11 weekend) By LA Times reporter Nathaniel Popper,
In all due respect I think reporter Popper, is some what over trusting of somebody if he believes what he writes when he says that the amount of money banks have on hand is the most important rule at Basel, known as Basel III.
I say the most important talking points will be about large blue-chip companies like GE, which has traits to be able to bury exotic risks on its balance sheet, page 69-70.
Goldman Sachs invented securities so complex they remain forever misunderstood, page 72.
I try to show Much more on these blog pages using "The Big Short". Show what "must me known" so we can get more people to vote out the Same Old Corrupt World Banking System in our USA. I'm not smart but I can fight!