Saturday, January 23, 2010

New bank rules unlikely to hurt big institutions

I didn't bother commenting on this until now because I was waiting for this type of revelation. Obama is Wall Street. The whole government is Wall Street. It's fascism. It's corporatism. The banks run the government. They have since 1913. They killed Kennedy in part because he wanted to abolish the Fed and issue a debt-free currency. So of course these new initiatives won't hurt the banks. They're not going to commit suicide. They're not going to self-immolate. And if you're reading this, you probably knew this too. It really doesn't take much to figure this out. But we have to still wonder how many people aren't paying attention, and think Obama is on the attack against the reckless banksters simply because he said he did. How many of them know that he broke nearly every campaign promise he made? And then, if they do know, how many of them think they just need to kick the communist Democrats out of office and elect patriotic, flag-waving red-blooded Republicans, and they'll save us? How far have we really come?

    ABC News -

    President Barack Obama's latest broadside against big banks may have more bark than bite.

    Obama's plan to limit banks' size and risky trading has spooked investors, but analysts say it would have only marginal effect on institutions like JPMorgan Chase, Bank of America and Citigroup — and would be hard to enforce. And it's not clear the rules would reduce taxpayers' risk of having to bail out another big bank.

    The White House has yet to provide details of the plan outlined Thursday. But attention has centered on Obama's effort to bar the biggest banks from doing what's called proprietary trading. That's when banks use their own money to make high-risk bets. If those bets go bad and a bank goes under, taxpayers could be on the hook.

    Fearing the Obama plan might reduce bank earnings, investors reacted by dumping financial stocks Thursday, helping send the Dow Jones industrial average down 213 points. The pessimism continued Friday, with the Dow losing more than 216 points. Also weighing on the market were corporate earnings reports that failed to meet investors' expectations.

    The proposed overhaul marked Obama's latest effort to more tightly police the nation's largest banks. Last week, the president proposed a tax on banks to recoup billions in bailout money that was handed out at the height of the financial crisis in 2008.