CDS

Economic Warfare? Europe versus Wall Street


Michael Collins

(March 10) Wall Streets is headed toward international pariah status thanks to two recent actions by the European Union (EU).

On Tuesday, the EU announced that it was banning Wall Street banks from the lucrative government bond business in Europe. They didn't express official concern or fire off a warning shot. They simply banned Wall Street from financing government bond deals like the one Goldman Sachs sold to Greece. The Guardian pointed out that Wall Street bond business from European governments has gone down over the last two years. Now the business is gone period. In effect, the EU has labeled Wall Streets business tactics as too dangerous for their governments to handle.

Then on Wednesday, the President of the European Commission said that the EU was considering a ban on government debt speculation through Credit Default Swaps (CDS) President José Manuel Barroso announced that, "the Commission will examine closely the relevance of banning purely speculative naked sales on Credit Default Swaps of sovereign debt." While not an outright ban, the threat of banning CDS on national debt would be a major loss for the world's financial speculators, particularly those in the United States and Great Britain.

Elizabeth Warren pursues Oversight, through TARP Maze

originally posted 2009-04-12 21:29:02 -0500, bumped by carol

Elizabeth Warren was appointed chair of a newly created Congressional Oversight Panel (COP), which is charged with keeping tabs on the $700 billion bailout of the financial sector - including Troubled Assets Relief Program (TARP).

Warren however, has had some "Trouble" getting straight forward answers ... as she explained to the Boston Globe:

Keeping tabs on the bailout

By Elizabeth Warren -- April 12, 2009

    Elizabeth Warren: There's a major problem and a minor problem. The minor problem is documentation. I've spent four weeks now looking for someone who can give me the details of the stress test so that we can do an independent evaluation of whether the stress test is any good.

    We get: "someone will call [you] right back." Only the call doesn't come. The major problem is ...

This why I still believe...

that they knew about this "crisis" coming down the pike at least as far back as 2003 when they were using that obscure civil war era banking law to block the state lawsuits against the banking institutions. They knew this was all coming and they needed to get legislation in place that would protect the lifestyles of their rich and blameless allies.

"It turns out that one of the features of the 2005 Bankruptcy bill was to put derivative counter parties [like CDS holders] at the front of the line ahead of other creditors in bankruptcy proceedings. Actually, from what I can tell, they don't just go to the head of the line. They got to skip the line entirely. As the Financial Times noted last fall, "the 2005 changes made clear that certain derivatives and financial transactions were exempt from provisions in the bankruptcy code that freeze a failed company's assets until a court decides how to apportion them among creditors."" - Josh Marshall

Legislation like that doesn't just come out of nowhere.

It takes time for them to figure out what they want to achieve and how they want to achieve it. And then there is the need to find the right time and the right place to slip the junk in.

They could have solved many of these problems years ago and mitigated some of the disastrous results but, instead, they purposefully let it build while protecting themselves and waited for just the right time to unleash the "crisis" on the nation, knowing it would tie the hands of the next administration financially.

IOW: They did manage to drown the government in a Katrina sized bath tub.

Also, I think they were hoping the GOP could capitalize on it politically during the elections. What they didn't count on was John McCain's doe in the headlights reaction looking as stupid as it did, nor the fact that some would figure out how it all really happened so fast that a huge backlash would ensue coupled with the reality that Americans just don't trust republicans with their money anymore and in any way. The GOP is a walking and talking financial zombie.

This was all nothing more than a well orchestrated game of CYA and collusion between politicians and their financial owners. Real, honest "Disaster Capitalism" in an ufetterred free-market-run-amok at its worst.

 [So I was wrong. Clearly edited to reflect less "DUH".]

Making a Difference, by Doing the Right Thing!

After Evicting thousands of Families in the last year, and enduring many gut-wrenching episodes, at the bequest of the Big Banks -- Illinois Sheriff Tom Dart, finally said:

ENOUGH!

Rachel Maddow thanks Tom Dart

http://www.youtube.com/watch?v=J7w0x09vFlc

Why do "Free" Markets, cost SO much?

If Free Markets are the supposed Engine of Growth,

Why do they always seem to lead to a "money grab",
a greedy "land rush", with the Tax payer ALWAYS picking up the Bill?

Why do the Rich, always manage to get richer?

While those who "play by the rules", just manage to get "pink slips" and foreclosure notices?

And an endless pile of Bills?

Hedging their bets -- about exactly WHO owns your Mortgage?

Promoted as jamess provides us with information that all of us need to know more about to help understand our current crisis - standingup

In the Olden Days (B.D. -- Before Deregulation)

1) you want to buy a House

2) you put 10-20% down and got a mortgage loan, after intensive scrutiny of your income and creditworthiness

3) you spend 30-years making monthly Mortgage Payments

4) you take Ownership of your Home, free and clear.

5) IF you fail to make Mortgage Payments, for 3 months or more, a Snidely Whiplash character would show up from the Bank, and promptly put you out on the street.

Fortunately (or unfortunately?) in these 21st century days of Investment Banks and Hedge Funds, riding herd in a "wild west" electronic economy with little to NO Oversight, you may still default on your Mortgage -- yet too often it seems, that No One really knows, exactly WHO owns your House, when you do ...