Things you’ll never be able to explain to a WS Occupier…

Just saw another reference in today’s local paper as to how the catalyst for our continuing financial meltdown was due to “lack of financial regulation.”

Which is really the problem with just about everything in America, isn’t it?  From swimming pools, to banks, to unregistered house cats, to insurance, to keeping wild animals, to school lunches, to where municipal employees live, to pig farms to — well, just about everything — we just need some more rules.

And — they don’t even have a rule about millionaire baseball players chewing tobacco.  How’d that get by?

At least in the financial arena, we don’t have to worry about anything ever going wrong again as we now have the Mother of All Financial Regulatory Laws — the Dodd-Frank bill.

Cynics may point out that if people paid any attention, former Senator Dodd and Representative Frank would be known as “co-conspirators” instead of “cosponsors.”

Be that as it may, Dodd-Frank is a regulatory masterpiece with enough new rules, regulations, bureaucracies, czars, and apparatchiks to make “Compliance Specialist” the hottest new job in any industry that has anything to do with money.  So we’re all safe.

Or not.

Bank of America, with the blessing of the Federal Reserve,  just shifted several trillions (yes, with a “t”) of dollars of derivative risk from its struggling Merrill Lynch operation to its struggling bank operation.  Why bother?

Well, when those bets go bad, if they were still on the Merrill side, the stockholders and bondholders would take the hit.  By moving them to the bank side, they’re now backed up by the FDIC and its completely inadequate $3.9 billion (yes, with a “b”) fund balance.  So who’s backing up the FDIC?  Do you really need to ask?  Naturally, after the next bailout, people will demand even more government and regulations.

Remember, you heard it here first — the situation is hopeless, but not serious.

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4 Responses to Things you’ll never be able to explain to a WS Occupier…

  1. Tom Naughton says:

    I’ve done some in-depth research on the “Occupy Wall Street” crowd, and it turns out the whole movement is a scheme concocted by the British government to make British soccer fans look orderly and intelligent by comparison.

    It’s working. At least soccer fans leave after the brawl and go home to start working on their hangovers.

    Although if you recall, British students had their own little “Occupy Prince Charle’s Limo” event when they were told they were going to have to start chipping in on their college costs.


  2. Christine Davis says:

    I’m so glad you’re posting again! Every time I checked it was ” the sheriff gets it” post. I need all the learnin’ I can get because most of my family and in-laws are always trying to convince me of the error of my liberty-minded ways! I’ll keep reading!

    Thanks — I’ll keep writing! There’s just so much government stupidity, and so little time.


  3. Marcus Riedner says:

    Watching American politics – and American’s talking about politics – is almost as fun as watching the politics up here in America’s Hat ( aka: Canadaland ).

    I’ve been following the Occupy movements down south and up here in the frozen north, and it is really interesting how – once you peel back the bi-partisan/partisan/hyper-politicized rhetoric – everyone for Occupy and everyone against Occupy are basically saying the same thing.

    Government in America ( or insert whatever G20 nation here ), and all its trappings, are totally broken. The regulations? Broken. The regulators? Broken. The politicians? Broken. The political process? Broken. The economic system? Broken. Which side of the political scale you fall on says the same thing – things as they stand right now are broken.

    What would be great is if everyone – agreeing that things are just not working right now – could put aside their arbitrary political lines in the sand and sort of start talking about solutions instead of problems. Maybe in some cases more regulations are a solution ( like, say, around things like coal ash disposal or political campaign finances ). Maybe in some cases, my guess is most, the regulations need to be scrapped and replaced by something lean and functional ( say, like, the entire IRS and US tax code ).

    The reason I, as a Canadian, am commenting on this – a largely American based situation – is that Canada tends to hit the same problems America dealt with ( to a greater or lesser degree ) about 5-10 years after America. So, you know, we’re in the same boat up here – we just haven’t heard the warning klaxons telling us to abandon ship. The last 10 years have seen Canadian politics and policy focus on rhetoric – on lines in the sand – and not on fixing problems.

    They’re really opposites. While both sides see government as broken, the OWS luftmenschen insist that the solution is more government — with them in charge, naturally; us libertarian types see the state of the government as an unavoidable expression of its character. Government corruption isn’t a function of which “team” currently has the ball, it’s a function of size.

    The OWS crowd wants to throw out the current bums so THEY can use the government’s massive coercive power and apparatus to force everyone into giving them their own personal bailouts; my people want to throw the bums out, then turn out the lights and close the thing down so we can live in peace. Plus, us limited government types tend to bath regularly.

    I don’t see those as arbitrary disagreements. Except maybe the bathing part.

    I think Canada may deserve a bit more credit for avoiding collapse than just timing or good luck. My understanding — correct me if I’m off base, please — is that while Fannie Mae and Freddie Mac were setting us up for the biggest housing bubble and collapse in the history of the universe by underwriting increasingly “creative” loans — low/zero down, no-doc (liar) loans, ARMs, etc. — to people increasingly less likely to be able to actually make payments; and most of Europe was anxiously copying our playbook so they could implode their economies for decades, too; Canada and/or its banks maintained at least better standards in terms of higher down payment requirements, creditworthiness, etc. They also were much more circumspect re: “bailouts” and liquidity (i.e., money-printing) once the meltdown commenced.

    So, as most of the G20 countries continue to collapse under the weight of our own stupidity, Cananda’s suffering is more limited to the damages of losing markets and customers due to the economic stresses in its trading partners, but it hasn’t completely debauched its currency like most of the rest of us. Good on you!


  4. Bank of America somehow makes money even though they are one of the worst companies in the World. Would would you let a company like thats have your money?

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