Gold and silver trading left out of financial regulatory bill today
thatboyaintright
Posts: 408
I caught the very end of a FOX news discussion on gold and silver trading being exempted from the financial regulation bill passed today in the congress' conference committee. Anyone here catch the full story? Any thoughts on its effect on PM prices?
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After a great depression that was caused by problems similar to today's economic debacle, Congress passed the 36 page Glass-Steagal Act that successfully prevented another major economic crisis for over 50 years. Then in 1999 a "purchased" congress and White House administration repealed the Glass-Stegal Act. This allowed banks and investment firms to hop back in bed together and return to their pre-great depression gambling habits. As a side note, the push to repeal Glass-Stegal was led by none other than Washington's Phil Gramm, husband to an auditor at Enron (guess it runs in the family).
Today's new bill is over 2000 pages and doesn't come close to what the 36 page Glass-Stegal Act accomplished. The fact that bank stocks saw great gains today should tell you who the real winner was. Never forget that major bills are really written by lobbyists representing the interests of the very people the bills are supposed to regulate. Money talks, everything else walks.
UPDATE:
"Under the agreement, reached late Thursday, banks would continue to be allowed to deal interest rate and foreign exchange swaps, "credit derivatives referencing investment-grade entities that are cleared," derivatives referencing gold and silver, and the firms would be allowed to hedge "for the banks' own risk."
Banks would be forced to push out to their affiliates derivatives referencing "cleared and uncleared commodities, energies and metals (with the exception of gold and silver), agriculture, credit derivatives referencing non-investment grade entities and all equities, and any uncleared credit default swaps," Peterson said."
From this commentary
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
I'm having trouble with where Banks and wall street separate on the derivatives.
<< <i>If today's PM closing prices are any indicator, no effect. Then again, precious metals have de-coupled recently from just about everything except planned take downs.
After a great depression that was caused by problems similar to today's economic debacle, Congress passed the 36 page Glass-Steagal Act that successfully prevented another major economic crisis for over 50 years. Then in 1999 a "purchased" congress and White House administration repealed the Glass-Stegal Act. This allowed banks and investment firms to hop back in bed together and return to their pre-great depression gambling habits. As a side note, the push to repeal Glass-Stegal was led by none other than Washington's Phil Gramm, husband to an auditor at Enron (guess it runs in the family).
Today's new bill is over 2000 pages and doesn't come close to what the 36 page Glass-Stegal Act accomplished. The fact that bank stocks saw great gains today should tell you who the real winner was. Never forget that major bills are really written by lobbyists representing the interests of the very people the bills are supposed to regulate. Money talks, everything else walks.
UPDATE:
"Under the agreement, reached late Thursday, banks would continue to be allowed to deal interest rate and foreign exchange swaps, "credit derivatives referencing investment-grade entities that are cleared," derivatives referencing gold and silver, and the firms would be allowed to hedge "for the banks' own risk."
Banks would be forced to push out to their affiliates derivatives referencing "cleared and uncleared commodities, energies and metals (with the exception of gold and silver), agriculture, credit derivatives referencing non-investment grade entities and all equities, and any uncleared credit default swaps," Peterson said."
From this commentary >>
<< <i>"No one will know until this is actually in place how it works. But we believe we've done something that has been needed for a long time."~ Senate Finance Commitee Chair Chris Dodd( D-CT) >>
BWAHAHAHAHAHAHA!!!!!!!!!!!!!!!!!!!!!!!!!
If you want to reign-in derivatives, outlaw vicarious transactions and only trade them on an exchange.
I knew it would happen.
<< <i>"Too big to fail" lives on, at taxpayer expense. And Fannie and Freddie are now the financial pillars of strength and virtue that will carry our economy to new heights. Yeah, the term "douchebags' is too charitable a term for our "lawmakers", imo. >>
We the people put them there, so it's up to we the people to remove them.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
We used to be a bellweather state, but now we are almost as liberal as Massachusetts. Our attroney general lied about serving in Vietnam, but still leads the race to replace Dodd (who is not running) by 20 points.
<< <i>Don't blame me. I never voted for Dodddouchebag.
We used to be a bellweather state, but now we are almost as liberal as Massachusetts. Our attroney general lied about serving in Vietnam, but still leads the race to replace Dodd (who is not running) by 20 points. >>
Peter Schiff, a friend of the consumer and enemy of big government, should and will win the election.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
<< <i>So will this give them free reign on selling paper gold & silver with out physical backing?
I'm having trouble with where Banks and wall street separate on the derivatives. >>
That's the way I read it. I think the bill legitimizes the manipulations the banks have been doing with gold and silver to drive down the price. And we thought the short selling and paper games with gold and silver were going to be finally dealt with by the regulators..... lol..... well, I guess they have been. Only instead of slapping their hands and enforcing the laws, looks to me that they might have just changed the law to make the games legal. Got to love it!
<< <i>So will this give them free reign on selling paper gold & silver with out physical backing?
I'm having trouble with where Banks and wall street separate on the derivatives. >>
Banks and Wall Street are one and the same. Repeal of Glass-Stegal took care of that.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
The CFTC can act independently of the FinReg bill concerning gold and silver trading if they desire. There are already regulations in place to enforce if they so desire. Gold and silver otc derivatives weren't the primary cause of our financial mess, just a small part. Otc interest swaps are the #1 problem because if interest rates are manipulated, then entire economies malinvest their capital. Regardless of any new FinReg bill, or gold/silver derivatives..........gold and silver will find their true market value. The banks can manipulate PM's until the day it no longer works.
roadrunner
<< <i>J6P will continue to vote for whoever doles out the most freebies. They don't want anyone who will upset their "free" apple cart.
roadrunner >>
Hey RR, With this statement sounds as if your lumping the American blue collar worker with the welfare crowd
<< <i>"Too big to fail" lives on, at taxpayer expense. And Fannie and Freddie are now the financial pillars of strength and virtue that will carry our economy to new heights. Yeah, the term "douchebags' is too charitable a term for our "lawmakers", imo. >>
Like the fellow said, Too big to fail is over, unless you're too big".
of their half vast brains, the World and the Nation still faces a horrendous
financial problem. As usual, the money spent by all of the vested interests
will prevent real progress in solving the problems. These fat cats have bought
some time to line their pockets a little more but, in the end ,all will suffer for it.
Remember how the auto makers fought seat belts, air bags and improved gas
millage,Quality construction, safer car designs .Well ,look at the results
of their lobbying success. GM and Chrysler in virtual
bankruptcy and loss of much of the American Market.When any industry fights against
the long term welfare of the People and the Nation, then that industry will in the end,
suffer for its arrogance.
At some point in the coming disaster, the agents behind our Nations financial demise
must be indicted, tried and incarcerated for a very long time in" HARD TIME PRISONS".
Those greedy, inept and self centered captains of industry must not be allowed to depart
their weakened or destroyed companies with platinum plans that yield them 100 million dollars.
Either we as a people find a way to regain a National sense of right and wrong, appropriate rewards
as well as punishments and return to taking responsibility for our deeds as well as misdeeds,
then we will ultimately go the way of the late lamented Roman Empire.
If at some point, we do not harshly remind our Government Officials, that they are not royalty or for sale to
the highest bidder ,rather then servants of the people, then we are doomed to suffer for our failures to be
careful who we nominate and elect to office.
Camelot
<< <i>After all the "experts" and "Talking Heads" have given us the vast wisdom
of their half vast brains, the World and the Nation still faces a horrendous
financial problem. As usual, the money spent by all of the vested interests
will prevent real progress in solving the problems. These fat cats have bought
some time to line their pockets a little more but, in the end ,all will suffer for it.
Remember how the auto makers fought seat belts, air bags and improved gas
millage,Quality construction, safer car designs .Well ,look at the results
of their lobbying success. GM and Chrysler in virtual
bankruptcy and loss of much of the American Market.When any industry fights against
the long term welfare of the People and the Nation, then that industry will in the end,
suffer for its arrogance.
At some point in the coming disaster, the agents behind our Nations financial demise
must be indicted, tried and incarcerated for a very long time in" HARD TIME PRISONS".
Those greedy, inept and self centered captains of industry must not be allowed to depart
their weakened or destroyed companies with platinum plans that yield them 100 million dollars.
Either we as a people find a way to regain a National sense of right and wrong, appropriate rewards
as well as punishments and return to taking responsibility for our deeds as well as misdeeds,
then we will ultimately go the way of the late lamented Roman Empire.
If at some point, we do not harshly remind our Government Officials, that they are not royalty or for sale to
the highest bidder ,rather then servants of the people, then we are doomed to suffer for our failures to be
careful who we nominate and elect to office. >>
Even J6P & Joe Average White Collar (JAWC) get their share of freebies that they are overly used to. They keep voting for the elected official that brings back the pork to their State or local jurisdiction. But in the end, it all comes back to bite us. It sort of links up with what Bear said above.
GM and other automakers couldn't help but dip into the apparently "easy" money of financing cars and other areas such as mortgages, credit cards, etc. vs. staying with their bread and butter core businesses. In the end, their core businesses become financing with massive leveraged risk applied.....ultimately losing at the game of otc derivatives even though their mathematical models told them what they were doing was safe/AAA.
roadrunner
<< <i>
<< <i>Don't blame me. I never voted for Dodddouchebag.
We used to be a bellweather state, but now we are almost as liberal as Massachusetts. Our attroney general lied about serving in Vietnam, but still leads the race to replace Dodd (who is not running) by 20 points. >>
Peter Schiff, a friend of the consumer and enemy of big government, should and will win the election. >>
Well, hope springs eternal, but I'm not holding my breath. I thought Rob Simmons had the best shot at beating Blumenthal, but it looks like Linda McMahon will end up buying the nomiation with her wrestling millions. Blumenthal will probably have to pull a Spitzer to lose.
of the public welfare are really wolves in sheep's clothing. While they
shout about the rights of the people, they quietly and cleverly craft
hidden loopholes ,that will silently negate the very improvements they
proclaim.In some ways, these sham patriots are even more dangerous
then the outspoken, bought and paid for officials that speak only for the
industries that bought them.
Camelot