Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
The Federal Reserves granted a change of status to both Goldman Sachs and Morgan Stanley from Investment Banks to Commercial Banks on Sunday. See link to the story below:
Last major investment banks change status: Financial News - Yahoo! Finance (http://biz.yahoo.com/ap/080922/bank_change.html - broken link)
Which newly created financial entity will Paulson get a job to be their CEO come January after he fixes their structural problems via his 700 billion dollar "blank check authority?"
Which newly created financial entity will Paulson get a job to be their CEO come January after he fixes their structural problems via his 700 billion dollar "blank check authority?"
How big will his signing bonus be?
The top US hedge funds manage more than USD 1 trillion, more than the financial system bailout is reportedly worth.
Not only are US companies selling financial and industrial assets to Chinese companies, so are Italian, French, and German ones, to name a few.
When I tell you that the average Americans caught up in foreclosures will wind up in barracks near a shoes and socks factory, I am not joking, and his bosses, or at least the shareholders, will be Chinese.
Yes, we will have universal health care in the US, Chinese style.
Can someone tell how this "changes" anything? Going from investment bank to commercial bank does what exactly? And how is it going to help anything?
The main difference is that now they can take deposits from the general public rather than raising funds on the capital markets, and they are regulated directly by the Federal Reserve, eligible for emergency funding according to normal rules, rather than being regulated by the SEC.
We can come out of this crisis if we can put average American workers into more productive jobs than pencil-pushing mortgage broker, real estate agent, municipal government bureaucrat etc., like making shoes and socks and nuclear power plants.
Their income would then be based on real work, with something real to show for it, and they would deposit the fruits of their labor into solid banks that lend out money for real productive investment.
Why did we deviate from that thousands-of-years-old fundamental?
Can someone tell how this "changes" anything? Going from investment bank to commercial bank does what exactly? And how is it going to help anything?
It means that all banking in America is now regulated by the Fed, with the exception of a few smaller boutique investment banking firms that are insignificant with respect to the bigger picture. Goldman and Morgan Stanley will now operate just like Citi and Bank of America, Wachovia and the others in that they will take commercial deposits from customers, be able to borrow from the Fed at the discount rate, and be subjected to depository regulations.
This is probably a good thing given the mentality of the scumbags who ran the investment banks (i.e. crying for no regulation but having no stomach for the risk of failure that ensued).
This news doesn't necessarily change much; rather, it signifies that the one of the last nails has been pounded into the coffin that holds American capitalism as we once knew it. Welcome to the coming age of relative comfort, economic mediocrity and eventually, the long decline.
The main difference is that now they can take deposits from the general public rather than raising funds on the capital markets, and they are regulated directly by the Federal Reserve, eligible for emergency funding according to normal rules, rather than being regulated by the SEC.
We can come out of this crisis if we can put average American workers into more productive jobs than pencil-pushing mortgage broker, real estate agent, municipal government bureaucrat etc., like making shoes and socks and nuclear power plants.
Their income would then be based on real work, with something real to show for it, and they would deposit the fruits of their labor into solid banks that lend out money for real productive investment.
Why did we deviate from that thousands-of-years-old fundamental?
until fiat money which is created off of something as moronic as debt has been abolished, we will not have a banking system that produces "real work". It will continue to be a farce and a system of neo-debt serfdom.
I really wish we would go back to gold or some such. yeah it would mean we wouldn't be as flexible. It means we wouldnt be able to just print fictious money but then again it would make us live with in our means. The only downside I see is. It would then make larger countries want to go out and conquer those with resources. Smaller countries would never be able to develop without interference from stronger govts. Then again, they do the samething now (cause of oil). Meh, i dont know *shrugs*
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
