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Risk taking, I have been warned , has moved to the “shadow banking system,” which utilize flow of funds accounts that are outside the purview of the Dodd-Frank Act, Basel III, and even the ministrations of t he Federal Reserve. None of these regulators have the obligation of overseeing the re-use of this pledged collateral, which are being supplied by asset managers to other dealers or players who “mine” this collateral for other purposes than were first intended.
You want to worry about money you can’t see– and don’t know where it is located? Then, worry big-time about some $5.8 trillion of the “shadow banking” system that are in some kind of crazy-quilt daisy chain where they are pledged by some huge unregulated hedge fund or sovereign wealth fund, and then end up as collateral being used by yet another financial dealer. There’s no central collateral clearing desk or depositary– where all of these transactions can be observed. It means long term savings can be turned into short-term transactions that are part of the counter-party web of global financial markets.
Wall Street poured BIG $ into fighting any sort of reform. Dodd -Frank, like all bills, is a politically compromised piece of legislation. During the campaign, Romney vowed to repeal and replace Dodd - Frank with something else ( unknown). The most vocal opponents of Dodd-Frank thought that repeal was highly unlikely, even in a Republican controlled Congress. It was dismissed as campaign rhetoric.
In the meantime, Wall Street continues to lobby Congress and there has been a bipartisan initiative to roll back some of the provisions within Dodd-Frank, specifically some of the rules for derivatives. Elizabeth Warren has come out swinging.
And speaking of Warren, there are folk who dismiss her because some internet rag reported that she had once made false claims of Native American heritage when such heritage was insignificant in her melting pot heritage. And horror of horror, her family had real estate interests going back decades.
Reality is there is BIG Wall Street $ seeking to discredit Warren and anyone else who might upset the status quo.
Memories are short. Back in 2008/2009 GM owed billions and suppliers were not shipping out of fear of being stiffed. That sort of would have hampered building new cars. Also, they tried to sell the Saturn division and couldn't get any takers.
Chapter 11 was not an option in a recession nearly as big as the Great Depression.
The union pensions were saved....the suppliers (non union) got screwed.
Many family owned dealerships were forced to shut their doors as well.
I guess the thousands of dealership employees jobs aren't as important as union jobs, huh?
(BTW....GM is building their best selling vehicle in Mexico, which was built by OUR tax dollars!)
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So am I right that according to the chart of the OP
and figuring out the averages they have paid back
90.2 % of the money given to them in the bail out ?
Risk taking, I have been warned , has moved to the “shadow banking system,” which utilize flow of funds accounts that are outside the purview of the Dodd-Frank Act, Basel III, and even the ministrations of t he Federal Reserve. None of these regulators have the obligation of overseeing the re-use of this pledged collateral, which are being supplied by asset managers to other dealers or players who “mine” this collateral for other purposes than were first intended.
You want to worry about money you can’t see– and don’t know where it is located? Then, worry big-time about some $5.8 trillion of the “shadow banking” system that are in some kind of crazy-quilt daisy chain where they are pledged by some huge unregulated hedge fund or sovereign wealth fund, and then end up as collateral being used by yet another financial dealer. There’s no central collateral clearing desk or depositary– where all of these transactions can be observed. It means long term savings can be turned into short-term transactions that are part of the counter-party web of global financial markets.
Such an organization exists. It is owned by broker/dealers and banks and has done wonders over several decades to manage risks for securities deemed eligible. It has testified before Congress that it has the ability to impose discipline in the derivative markets. Some of it's key stakeholders caught wind of this and put the kibosh on it, for now.
So, since Bush was president when the bailouts happened, I'm sure that you're going around saying what a great man he was by saving the economy, huh?
I'm glad Bush abandoned his previously held positions and allowed his Administration to respond to the crisis. I think it speaks to the depth and breadth of the crisis that Bush and others in his Administration who felt the same way were willing to abandon their long held beliefs. Great? No. Thankfully, just pragmatic.
.
So am I right that according to the chart of the OP
and figuring out the averages they have paid back
90.2 % of the money given to them in the bail out ?
I'm glad Bush abandoned his previously held positions and allowed his Administration to respond to the crisis. I think it speaks to the depth and breadth of the crisis that Bush and others in his Administration who felt the same way were willing to abandon their long held beliefs. Great? No. Thankfully, just pragmatic.
Yea, there is nothing like a "private profits, public losses" kind a guy in the White House. Actually, I'd prefer someone who sticks to the principles.
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