Gloom, Doom, or Boom? Finance and Economics

[Colonel Sun]

[monster_gardener]

[AzariLoveIran]

[AzariLoveIran]

[monster_gardener]

[Mr. Perfect]

Monster Gardener, your position here reveals a great deal as to why you and people who think like you are pretty much the sole reason behind our current economic conditions.

You want a little bit of socialism, a little bit of capitalism. You want the wealth of capitalism, the safety of socialism. And the results are the disaster we are in currently.

MG the average citizen has no concept of the financial world. The "regulation" you want will simply bring confusion and mud to the process. By repealing Glas Steagal we created transparency. If you want to reinstitute Glas Steagal you will reintroduce opacity to the marketplace, and the world will become a more dangerous place.

As Az correctly pointed out, deposit only banking is low yield, nobody wants in that business. That money will always seek higher returns no matter what. You will never be able to stop that no matter what you do. But by doing it your way it will simply make the process corrupt. Repealing Glas Steagal brings light and transparency, your plans will reduce light and reduce transparency.

2 billion dollar trading event, happens once a decade, statistically irrelevant. Let free people do what they want with their money MG or put them under the yoke of the central planner. But don't try to do both. A man cannot serve two masters MG.

[Ammianus]

[AzariLoveIran]

.

Mr. Perfect

Do you know how Goldman Sachs makes Billions each quarter ? ? ?

Goldman Sachs trading desk pretty much (exclusively) controls copper trade in the world (and huge players in other commodities)

If copper price has a dramatic sudden move (up or down), GS looses or gains Billion of $$

If GS makes profit (in copper), it is their's .. if loses, you have to pay their loss (called bail out)

nobody is against GS speculating on commodity or equity market .. but it should be with their own money and not with FED money

Any speculation should be with one's own money .. you win and lose, good for you

scale of deals, modern financial facilities, make things extremely dangerous these days

Yes, Goldman Sachs, Wall Street (and London), smart people .. but Shanghai and Frankfurt and Tokyo and Tehran ( ) no dummy either

Banks must do banking (taking deposits and facilitating commerce and consumers and loans) .. IB must be Mergers acquisition, IPO and other traditional IB businesses .. AND .. a big big AND .. Private equity, PE, gathering of rich people, can speculate with their own money as much as they want, there should be no regulation what they can do with their own money, burn it if you wish so

FED .. you .. must have different relation with those 3 group

- facilitate the banks in all fronts (cheap FED funds, unlimited funds .. as banks would be low risk) .. very tightly regulated

- Investment banking, M &A , IPO, arranging funding for corporate America etc .. FED relation should be as business partnership

- Private equity, they on their own .. can fuck around (own money) as much they want .. no FED money .. 100% unregulated

this way it is fair to You and to Them

right now, the smart boys have rigged the system

they speculating with your money .. you never win (profit is theirs) but, periodically, lose


There is one more important issue Mr. Perfect

FED can not have "one size fit them all" policy re interest rate, Fed-fund's rate

risk always defines the lending rate

is lending to Goldman Sachs (in highly risky derivatives or to PE doing "winner takes all" speculation) same risk as lending to commercial banks giving loans to manufacturers ?

no

different risk

if so

why FED not lend to GS with 10% interest rate (and profit sharing, customary in financial world) and to commercial bank with 1% interest rate

Present FED low interest rate is very bad for the economy .. very bad and has zero benefit

people who have money, capital, expect return on their money

no return is bad for capitalism .. cost of fund being zero is counter productive

cost of funds (FED money) must differentiate to Goldman Sachs, to Mom & PoP banks and to billionaires (PE)


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[Mr. Perfect]

[Mr. Perfect]

[Ammianus]

[Mr. Perfect]

My voting record is impeccable. I vote the right way every time.

The GOP is the tonic to this problem, if you doubt me ask any Democrat. They will tell you that we are trying to strip the government of all kinds of power.

And they're right. We are.

[AzariLoveIran]

[AzariLoveIran]

[monster_gardener]

[AzariLoveIran]

Deng Coy Miel, Singapore.jpg (163.3 KiB) Viewed 934 times

[Hans Bulvai]

[AzariLoveIran]

[AzariLoveIran]

[Demon of Undoing]

America will never have the draft again. Unless it's being mentioned to score rhetorical points, just bringing it up is a sign of political cretinism.

And generally speaking, even then.

[Tinker]

[Azrael]

[monster_gardener]

[Tinker]

They are already scaling back the wars in both Iraq and Afghanistan.

[AzariLoveIran]