Archive for the ‘banking’ Category

The environmental agenda has been infected by extremism—it’s become an economic suicide pact. And we’re here to challenge it. On Earth Day, visit http://www.freemarketamerica.org.

We all know why the Watermelons (Green outside, red inside) want America to fail. A failed state is ripe for totalitarian takeover. Just ask the Germans, the Russians, the Chinese, the Cubans, the Venezuelans, the Vietnamese, the Rhodesians (if you can find any), soon the Argentinians. and on and on and on.

 

And to remind you of how long the Watermelon totalitarians and their media accomplices have been working on this:
From Newsweak (sic) April, 28, 1975


Click here for your full size pdf.

John Allison is the President and CEO of the Cato Institute. Prior to joining Cato, Allison was Chairman and CEO of BB&T Corporation, the 10th largest financial services holding company headquartered in the United States. During his tenure as CEO from 1989 to 2008, BB&T grew from $4.5 billion to $152 billion in assets. He was recognized by the Harvard Business Review as one of the top 100 most successful CEOs in the world over the last decade.

Allison has received the Corning Award for Distinguished Leadership, been inducted into the North Carolina Business Hall of Fame, and received the Lifetime Achievement Award from the American Banker. He is a former Distinguished Professor of Practice at Wake Forest University School of Business, and serves on the Board of Visitors at the business schools at Wake Forest, Duke, and UNC-Chapel Hill.

Allison is a Phi Beta Kappa graduate of the University of North Carolina at Chapel Hill. He received his master’s degree in management from Duke University, and is also a graduate of the Stonier Graduate School of Banking.

via John A. Allison discusses Peter Wallison's Book "Bad History, Worse Policy" on C-SPAN 2's Book TV – YouTube.

I have been trying to come up with a very short easily remembered summation of the differences between the major schools of economic thought. If you like it pass it along.

There are two major schools of economic thought, the London and the Austrian. The London School is hundreds of theories addressing how political power can manage an economy. The Austrian School explains how the actual human interaction that comprises an economy works.

From: Maxine Waters Appointed Top Democrat on House Financial Service Committee

On Tuesday, House Democrats unanimously selected Rep. Maxine Waters (D-CA) to be the top Democrat on the House Financial Services Committee.

Waters will be the ranking member on the committee that deals with banking issues. Last year, the House Ethics Committee investigated Waters, one of the most partisan members of the Congressional Black Caucus, for allegedly using her position in Congress to bail out a bank in which her husband owned $350,000 worth of stock.

The Ethics Committee cleared Waters of any wrongdoing, because it could not find “clear and convincing evidence” that Waters used her influence and position to directly help OneUnited Bank secure a $14 million federal bailout from the TARP program. Six members actually recused themselves from the investigation.

The Ethics Committee did send Waters’ grandson and chief of staff, Mikael Moore, a letter of reproval for his role in taking “certain actions on behalf of OneUnited when he knew or should have known” of his family’s financial interest.” Waters’ office aggressively lobbied the Treasury Department in 2008 to secure bailout funds for OneUnited Bank.

Moore told the committee he had no idea his grandfather owned stock in OneUnited Bank and said it was an “impossible standard” for him to have to find out whether his family members potentially owned stock in banks for which his office was trying to secure bailout funds.

Melanie Sloan, head of the left-leaning Citizens for Responsibility and Ethics (CREW), said then that Moore’s employment in his grandmother’s office “set the stage for potential problems.”

“In light of this case, perhaps now the Administration Committee will add grandchildren to the list of relatives members may not employ,” she said.

Rep. Jeb Hensarling (R-TX) will chair the House Financial Services Committee, and Waters said she hoped to “reconcile our visions” in the next Congress. The two do not agree on much. Hensarling wants to reform Dodd-Frank, while Waters wants to strengthen the legislation that is crippling small banks with regulation.

Waters also said she intends top push for “housing finance reform” and a financial system that “facilitates economic opportunity and wealth creation for all.”

“Housing finance reform, in particular, will be crucial to ensuring the long-term success and stability of our economy,” Waters said. “I believe we need a financial system that facilitates economic opportunity and wealth creation for all, and I stand ready to work with my colleagues towards that goal.”

Workbook PDF at: https://dl.dropbox.com/u/32961642/EconomicCollapseWorkbook.pdf

Part Seven Topics:

WHO is doing these exotic and risky derivatives?

Review of top banks’ assets versus derivatives exposure

High Frequency Trading Scope & Solution

U.S. Government Unfunded Liabilities

The destructive nature of non-catastrophic insurance

Lies from Politicians

via The Economy Is Going To Implode Pt.7 of 8 – YouTube.

Workbook PDF at: https://dl.dropbox.com/u/32961642/EconomicCollapseWorkbook.pdf

Part Five Topics:

Wealth Transfer: European Context

Wealth Transfer: U.S. Context

The Bribing Set-up of the Underclass by the Regime in Preparation for Mass Slaughter

Secession Dynamics

Credit Default Swaps

via The Economy Is Going To Implode Pt.5 of 8 – YouTube.

Workbook PDF at: https://dl.dropbox.com/u/32961642/EconomicCollapseWorkbook.pdf

Part Four Topics:

One Dollar of Capital Banking Paradigm

Denninger Axiom & Chart — Debt and GDP Change since 1980

The Debt Cycle — A Snake Eating Its Tail

Intelligent People Must Reassert Themselves as the Leaders of Society

The Rule of Law and Justice Must Be Reasserted

via The Economy Is Going To Implode Pt.4 of 8 – YouTube.

Prager University: Do High Taxes Raise More Money? – YouTube.

Possibly the best short explanation of the Laffer Curve I’ve seen. Of course there is more to be discussed because this example focuses on the morally reprehensible “progressive” tax system wherein 47% of filers wither pay no income taxes or receive a cash bonus for filing. However, we’ll save that for another time.

Tim Groseclose, in addition to being a faculty member at Prager University, is a professor of political science and economics at UCLA. His article on this subject is here.

The Laffer Curve and New Evidence that Taxes Stifle Economic Output

Here is the link to download the Romer & Romer paper (in pdf) from the UC Berkeley website:

The Macroeconomic Effects of Tax Changes: Estimates Based on a New Measure of Fiscal Shocks

Here are the political/governmental poor decisions that led to the crash

Here’s How The Community Reinvestment Act Led To The Housing Bubble’s Lax Lending

The secularization of these, required by CRA, poison pill mortgages (needed to mitigate the banks’ risk incurred by making them) coupled with the repeal (1999) of the Glass Steagall Act made the crash almost inevitable. Both of these truly horrible decisions were made by politicians for “the greater good” of their constituents, either donors or stupid voters.

The Repeal Of The Glass Steagall Act and Its Contribution To The 2008/2009 Economic Crisis

The idiotic “derivatives” that were invented to shift more of the risk to investors and the “credit default swaps” designed to insure the investors in these instruments were actively encouraged by the SEC, which is a government agency charged with protecting the public not the banks.

Testimony of Annette L. Nazareth, Director Division of Market Regulation February 10, 2000

Certain Politicians who claimed responsibility for the CRA kept insisting that everything was working perfectly well while the system was snowballing down the hill.

Barney Frank and Chuck Schumer’s Role the Fannie Mae Failure

Rep. Barney Frank Admits to Helping Ex-Lover Land Job at Freddy Mac

Others were siding with the biggest bundler trying to capture control of the sub-prime market.

Dodd and Countrywide – WSJ.com

After the bust, the perpetraitors (sic) used it to turn on the small banks in order to protect the larger banks that had gambled and lost at the politicians urgings and assurances by constructing a huge barrier to entrance for new banks and onerous, costly reporting requirements the cost of which will cause many small banks to close. That will lead to larger banks being free to charge higher fees resulting in larger campaign donations or favors.

Dodd-Frank: 26,353 paper-pushers

Dodd-Frank helps big banks at expense of small ones …

 Now, I told you, that to tell you this,

http://www.bloomberg.com/news/2012-08-15/freddie-fannie-push-bank-bad-debt-cost-to-84-billion-mortgages.html

The problem is that the politicians forced bad loan origination on the banks in a ponzi like quota system and paid some Clintoonite bureaucrats some fantastic bonuses to flood Fannie Mae with bad loans.

Jamie Gorelick served as vice chairman of the Federal National Mortgage Association (Fannie Mae) when the government-sponsored enterprise began bundling subprime loans into securitized financial instruments. Her compensation was a salary of a little over $500,000 and $26,000,000 in bonuses. But Gorelick is perhaps best known for her 1995 memo, written when she was deputy attorney general for Clinton, that later became known as “Gorelick’s Wall,” a policy prescription limiting the flow of information between intelligence gatherers and criminal investigators that some believe helped allow the September 11, 2001 attacks on the World Trade Center to go unchallenged. (And often alleged to keep the FBI from learning what the CIA knew about Clintoon’s missile technology dealings with the Chinese.)


Franklin Raines the former chairman and chief executive officer of Fannie Mae, who served as White House budget director under President Bill Clinton. His Compensation was $700k salary, $50 million bonuses. He was specifically named in the Securities Exchange Commission’s lawsuit against Fannie Mae and settled for by paying the SEC $24.7 million, so he wound up in about the same financial position as the other Clintoonite.

The environmental agenda has been infected by extremism—it’s become an economic suicide pact. And we’re here to challenge it. On Earth Day, visit http://www.freemarketamerica.org.

We all know why the Watermelons (Green outside, red inside) want America to fail. A failed state is ripe for totalitarian takeover. Just ask the Germans, the Russians, the Chinese, the Cubans, the Venezuelans, the Vietnamese, the Rhodesians (if you can find any), soon the Argentinians. and on and on and on

And to remind you of how long the Watermelon totalitarians and their media accomplices have been working on this:
From Newsweak (sic) April, 28, 1975


Click here for your full size pdf.