The financial panic button has been pushed..Jim Sinclair Newsletter

[lib2DaBone]

http://jsmineset.com/


This administration has its head in rarefied Wall Street air. They honestly believe the reason they lost Mass. was public anger at the banksters alone. Now they have set things in total flux both for the re-nomination of Bernanke and the loss of their bankster's backing, but also at a time when the Supreme Court declared no limits on corporate political giving.

Unleashing those corporate political funds will result in a battle bigger than the health bill in the sense of lobbyists over new banking rules.

What is clear here is that the panic button has been pushed by the administration who still thinks they live in Wall Street, not Main Street. Be assured that Volcker understands the systemic disaster we are in, and will do nothing to pull the plug on the mountain of OTC derivatives. He is simply too smart for that.

The basic problem that still exists is the fraudulent OTC derivatives produced since 1991 that are yet to be addressed in any manner or form except through the capitulation of FASB, which permitted falsified values. All that did was make the situation worse.

Nothing that has occurred is dollar positive. All of this is meaningless looking forward to the November 2010 elections. All that counts is jobs, jobs and more jobs.

[FrenchieCat]

1. How does this cynical view help?

What is writer proposing as a solution?

Because I see now that it doesn't matter what the Obama admin does,
it will all be interpreted one way of the other as a negative....
as they are damned no matter.

[still_one]

4. In December the house passed major reforms that address the issues that

the writer is talking about. A couple of days ago, Obama added more. This is good

Unfortunately, in any situation like this, jobs are always the last to come back

[rubberducky]

2. The jobs ,jobs, jobs are gone, gone, gone mostly because of "free trade" agreements.

Sorry, but here in MI, I`m just sick to death of hearing we need jobs, jobs, jobs. Now that we`ve apparantly become bush`s dream of a "service" economy. We can`t all flip burgers, those jobs are taken here.When you lose your job to outsourcing it tends to make ya a little grouchy, especially when you are pushing 60.

[still_one]

5. You are correct, that is a big part of the problem. They should be giving companies

incentives to keep jobs here, and play the same game that at least China does, protect their own industries over foreign interests

[still_one]

3. Are you telling me that we should NOT break up the banks, "too large to fail"

or allow banks that are federally guaranteed allow them uninhibited access to risky investments?

This is part of the solution, along with the other reforms started in the house, and now in the senate

When the financial collapse occurred they needed to prevent a liquidity crisis. That is what they did. The problem was that during the bailout their was no accountability, now they are working to insure that accountability. Wall Street and the banks demonstrated that they cannot be trusted. Not only did they take the bailout money, but they increased their fees, and gave record bonus payouts to many individuals who were part of the mess

The reforms in the house, and now in the senate are addressing the derivatives and lack of regulation. You haven't seen it yet because the media hasn't been reporting it:

http://www.huffingtonpost.com/2009/12/11/house-financial-regulator_n_389062.html