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Congratulations chumps! You are now on the hook for $303 Trillion in Derivatives

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wage slave

Congratulations chumps! You are now on the hook for $303 Trillion in Derivatives

Daily Kos 12/15/14

Before Glass-Steagall was repealed in 1999, Wall Street was on the hook for bad bets with derivatives. During the real estate bubble the taxpayer was on the hook for these casino chips.

Then came the 2008 meltdown and Dodd-Frank was pushed through. The taxpayer was off the hook for six years. But now Congress rolled over for Wall Street and the taxpayer is on the hook again…..

Did Wall Street Need to Win the Derivatives Budget Fight to Hedge Against Oil Plunge?

naked capitalism 15 Dec 2014

Conventional wisdom among banking experts is that Wall Street’s successful fight last week to get a pet provision into the must-pass budget bill (or in political junkies’ shorthand, Cromnibus) as more a demonstration of power and a test for gutting Dodd Frank than a fight that mattered to them. But the provision they got in, which was to undo a portion of Dodd Frank that barred them from having taxpayer-backstopped deposits fund derivative positions, may prove to be more important than it seemed as the collateral damage from the 40% fall in oil prices hits investors and intermediaries….

 

Cromnibus Pension Provisions Gut Forty Years of Policy, Allow Existing Pensions to Be Slashed

naked capitalism 15 Dec 2014

The Kline-Miller amendment allows multi-employer pension benefits to be cut. Shouldn’t Warren Democrats be against that? ….

The New Stealth Bailout Of Bank Of America

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Bank of America just settled for about $.01 on the dollar.

Joe Weisenthal | Jan. 4, 2011    BusinessInsider

The news that Bank of America had settled its putback exposure with the GSEs sent the stock surging 7% yesterday.That kind of move has lots of folks screaming bailout. As Barry Ritholtz and Colin Barr at Fortune point out, Bank of America just settled for about $.01 on the dollar. 

Says Chris Whalen of Institutional Risk Analytics: “This looks to me like a gift from Tim Geithner… there’s politics all over this.”

This is almost certainly true, but also not shocking at all, given the potential ramifications of any serious hit to the banks‘ balance sheets.

Of course, this isn’t the end of the story, and Bank of America still has its massive exposure to non-agency MBS holders, including PIMCO, the New York Fed, and the Monolines, like MBIA.

Click here for a guide to Bank of America’s possible exposure >

Frances Moore Lappe: socialism, capitalism, and confusion

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Why are People Afraid of Saying “Socialism”?

Knee-jerk reactions to words like “socialism” and “capitalism” get us nowhere. We need to first define the terms.

March 30, 2010  by Frances Moore Lappe   AlterNet

‘Socialist’ has become the new favorite term of derision–working its fear-making magic because, for many Americans, socialism equals the great’government takeover.’ It’s assumed to be not just un-American but downright anti-American. Tea Partiers at their round up in Searchlight, Nevada, told us that’socialist’ Harry Reid’hates America.’ Our national aversion to the S-word isn’t necessarily a problem. But the term’s rapid rise as a political pot-shot, points to a huge problem: our culture’s lack of a common civic language, words on whose meaning we at least vaguely agree. Without it, we can’t hope to talk to one another about what matters most. ‘We have a language of capitalism. We have a language of Marxism. But we have no language of democracy,’ historian Lawrence Goodwyn once remarked. And we need one. Capitalism and socialism. Imagine if we just got some clarity on these basic terms alone. First, capitalism. To most of us, it’s quintessentially American. Many of us assume it’s democracy’s essential partner. But what is it? Capitalism is an economic system in which the person or body owning capital productive resources like raw material and labor—has the power to make decisions as to the use of these resources and who benefits from them. The capitalist is in control, not the workers, not the community members, not the government. It is a system in which capitalists seek to gain for themselves the highest possible return on their investment.

Reduced to these elements, it’s no surprise that capitalism returns wealth to wealth, leading to a jaw-dropping chasm between rich and poor: In our country meaning that one percent of households now have as much net wealth as the bottom 90 percent.

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Fiore: Free Market Clapper

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How come Mark Fiore (www.markfiore.com) gets it but the US  Senate doesn’t? Maybe he just doesn’t know the right lobbyists…….