And So I Go: Yesterday, Today and Tomorrow

Ezra Klein – Wonkbook: Financial Reform

Posted on: May 7, 2010

Ezra Klein – Wonkbook: The Crash of 2:54pm; health care and health-care repeal both unpopular; Iron Man 2!

You can go to his site and read the entire article but this is the important stuff as far as I am concerned.  BB

FinReg

‘Audit the Fed’ becomes ‘Audit the Fed once’: “The compromise, endorsed by Senate Banking Committee Chairman Christopher Dodd (D., Conn.) and the Treasury, would require the Fed to disclose more details about its lending during the financial crisis,” report Sudeep Reddy and Michael Crittenden. “It would also require a one-time audit of those loans and a one-time review of Fed governance. A formal vote was scheduled for late Thursday.” (We need to audit the Federal Reserve  which is a private company that controls our money supply.  The Constitution  gave this duty to Congress but Congress gave it to an independent entity  with the Federal Reserve Act of 1913.  At first it was just to make the paper currency but now it is more of a monster with many duties.  The worse thing I believe is if the Fed wants something they simply print the money they need to purchase what they want–=-a money tree!     This monster answers to no one and has never been audited.    It is long past due for the Federal Reserve to be made more transparent with its activities and this is what some in the Senate are trying to do by requiring a yearly audit.  Sen. Dodd the author of the Financial Reform  Billwants only one audit in the beginning and then feels there is no need for a yearly audit.   Just for reference: Sen. Dodd Chairman of the Senate Banking Committee along with Rep. Barney Frank were in my opinion the two major players behind the whole financial crisis.  I have explained this in my of my posts so won’t go into detail here.  But this man is NOT to be trusted.  He is also not running for reelection to the Senate after 24 years because he knows he can not win.  My opinion again:  with his banking bill  as written he will empower the large banks to swallow up the smaller banks because the Bill gives the larger banks the edge.  It will also make every financial transaction you and I engage in a public record.  It will greatly hinder small businesses from making  loans or financing on a monthly payment  plan because the amount of paperwork required is horrendous.  Small businesses simply can not afford to hire the employees to handle the paper work.  An example:  Your dentist often does work like braces on a monthly payment plan, furniture is often purchased on a monthly payment plan.  BB)

Proposal to break up big banks fails: “The amendment, proposed by Senators Sherrod Brown, Democrat of Ohio, and Ted Kaufman, Democrat of Delaware, would have forced some of the heaviest hitters on Wall Street, including Citigroup and Goldman Sachs, to shrink in size to limit the risk that big banks pose to the broader financial system,” reports David Herszenhorn. “The vote was 61 to 33, with 29 Democrats and 3 Republicans and 1 independent in favor, and 27 Democrats and 33 Republicans and 1 independent opposed.”  (Some of the large banks engage in all types of financial  commerce and it is to my mind hedging on a monopoly situation.  Also when they get in trouble they put all areas of financial commerce in jeopardy.  Thio amendment should have passed!  BB)

Small banks score in amendment process: “Senate lawmakers handed community banks another victory Thursday, passing an amendment to financial regulatory overhaul legislation that will shift the burden for deposit insurance to larger banks,” reports Michael Crittenden. “Lawmakers voted 98-0 in favor of an amendment that would change the way the Federal Deposit Insurance Corp. charges banks for government-backing of bank deposits. The agency would base a bank’s fees on its total assets minus tangible equity, instead of the traditional practice of basing assessments on a bank’s domestic deposits.” (GOOD!)

Harkin wants to limit ATM fees: “Chalk up ATM fees on the list of amendments that may make their way into the bank-overhaul bill under debate in Washington,” reports Jennifer Waters. “Sen. Tom Harkin (D., Iowa) introduced an amendment Wednesday that would cap fees for withdrawals at automated teller machines at just 50 cents per transaction.” (ATM’s are money trees for banks and the fees just keep going up.  BB)

Is this financial regulation that Wall Street can love? “Democrats did spend the past year threatening to unleash hell and all its furies on the financial sector, and in response a petrified Wall Street rushed to buy protection with millions of dollars in Democratic campaign tithes,” opines Kimberley Strassel. “The party in power then produced legislation that—while bad in many, many ways—is something the biggest players can live with. When Goldman Sachs CEO Lloyd Blankfein last week told Congress he was ‘generally supportive’ of the Democratic bill, he meant it.”  (The campaign contribution from big banks to the Democrats ( Goldman gave Obama one million)  has paid off very well for the big banks as I stayed above.  They even had an hand in writing it and it was done brazenly in the open.   BB)

An end to fine print: “Over the past generation, the proliferation of fine print, in everything from car loans to credit card applications to television commercials, has shaken what we value about contracts,” writes Elizabeth Warren. “Fine print means that one party (think: a big corporation) can lay down the terms of the deal in a way that the other party (think: a customer) is unlikely to figure out. Long after the contract has been signed, the party that inserted all the fine print can do almost anything — raise prices, cut service, extend the contract — all because the fine print says so…My proposal is simple: no more fine print. If you can’t explain something in simple, straightforward terms, it shouldn’t be part of the agreement.” (Amen to that!  There is no need for all the fine print when you are applying for a credit card or doing any other type of business.  A Real Estate agreement to purchase a home is all done on one page and this should be the norm for all transactions.  BB)

College admissions interlude: A guy tries to get off MIT’s waitlist — through the power of song.  (cute story)

Looking back on the Exxon-Valdez: “Two decades after the Exxon Valdez tanker ran aground near here, the economy and environment of Alaska’s Prince William Sound have recovered somewhat, but some effects of the nation’s last giant spill persist,” reports Jim Carlton. “The scenes of blackened devastation have been replaced by a return to postcard-perfect views. But thick oil can still be found on beaches throughout the sound only a few inches beneath the sand. More than half of the roughly 20 major animal species hurt by the 1989 spill—including killer whales and sea otters—haven’t fully recovered.”

“A collapse of the region’s once-rich herring fishery hammered Cordova, a town of about 2,200 still struggling to recover. Seeing fishermen on the Gulf Coast facing the same threat, Cordova fishermen offer them little cheer. ‘All those people are absolutely screwed,’ said 62-year-old Noel Pallas, one of many forced out of the fishing business by the spill.” (  The picture is not as bad as this report makes it but it is not as good as the other side tells it either.  The Exxon-Valdez oil spill did some damage that will take centuries to undo.  It also hurt the fishing industry because the fishermen were small businessmen and simply could not  hold on until  the mess was cleaned up.  New and younger fisherman have not replaced those who left probably because commercial fishing is a physically demanding business and subject to  market fluctuations like supply and demand.  As a result the amount of fish coming out of the area has greatly decreased.  the fish are there but the fishermen are not.  BB)

2 Responses to "Ezra Klein – Wonkbook: Financial Reform"

tell me what you think of the YouTube movies on this link

http://radiopatriot.wordpress.com/2010/05/06/its-glenn-beck-time/

Great site Hungry. Posting Beck is a wonderful Idea and makes it easier for people to hear him. Going to FOXNEWS sometimes intimidates people because it takes two or three clicks to get to Beck there. Thank you. BB

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