The Treasury Department has asked the Obama Administration for clearance to control the Derivatives Market.
In a two-page letter sent Wednesday to congressional leaders, Treasury Secretary Timothy Geithner said he wants to create a central electronic-based system that would track the buying and selling of derivatives. He also wants to ensure that financial firms selling the instruments have enough capital on hand in case they default and subject them to stringent standards of conduct and new reporting requirements.
Geithner wrote in his letter:
“All (over-the-counter) derivatives dealers and all other firms whose activities in those markets create large exposures to counterparties should be subject to a robust regime of prudential supervision and regulation.”
Obviously regulations, control and transparency sound great. However, Wall Street – and, certainly Global finance is most efficient when it’s manipulated and controlled by power mongers brokers and illuminati hand-picked insiders.
Look what a disaster Sarbanse-Oxley has been for the markets.
Wall Street began to second guess itself about the time socialist regulators began to enforce lop-sided audit controls. Sarbanse-Oxley became, literally, it’s own industry over night. Only some of you noticed that, as “options” for inside trading and the dissemination of related information became more difficult, short-sellers were able to step in and confound institutional traders.
Change and rules might be good. But, too much government is not.
The violent, lathe-like spinning of Ayn Rand in her grave threatens to throw the Earth out of its orbit, and hurl us screaming into the sun.”- Nick Milne
Note: I lifted that, in part, from Nick Milne (and, freely admit, changed a few words, and it’s very context) with naught but the best of intentions.
In any event…
Good or bad – and, always depending on where you stand in the equation, our national and the global financial markets have always been manipulated with the plan being steady growth, with most of the profits fueling a multitude of strategies that benefit a relatively select few.
When I am writing about things like this, it always takes me back to when Grandad would talk about “defending the mountains of Hemingway’s Spain”. More on that later – maybe.
Obama likely means well (in a sophomoric sort of way). And, many people that support him (for now) were not the beneficiaries of that accumulated wealth and power. However, the system probably can’t work off of Democratic ideals for long (notice how Wall Street can’t get a sustained run going?) and global markets keep looking for excuses to put more authority in the hands of a shrinking number of banks.
This sets the stage for revolution.
Watch how in the next fifteen years key families, their familiars, and other elites work through certain banks (including the sinisterly named Bank of America) to amass wealth, and become more blatant about deploying it strategically.
I don’t know yet if Obama will go down in history as the Anti Christ; there are too many views, (in terms of cultural nuance) to define what that might look like. But, it sort of feels like a significant part of his legacy will be that of having set the stage for anarchy and the foundation for a greater Brazil-like gap between the wealthy and the desperately poor.
Gawd… The irony is almost delicious. It’s the aftertaste that will have me concerned.
To be more clear… What we see happening now appears to be common sense changes to equalize the financial process. But, global finance can’t work that way. The result will be a broken system that can only be righted through financially incentivized leadership.
So, ironically, more rules will result in greater chaos, and set the stage for a power elite that only Thomas Jefferson could have imagined when he designed our Constitution to allow for separatist (like) rules.
Peace be to my Brothers and Sisters.
Brian Patrick Cork