FINANCIAL RUSSIAN ROULETTE: MORE DEREGULATION OF SOCIOPATHIC GREED FROM HR 992: WRITTEN BY CITI BANK LOBBYISTS:

70 house Democrats just voted to further deregulate sociopathic greed on Wall Street.  And this is an example of critically awful stupidity or lobbyists breathing down the naïve backs of  born-again Know Nothings from the mid 19th century.

‎This is inexcusable considering it should be clearly understood that the deregulation of Wall Street in 2000 when Clinton signed Gramm-Leach-Bliley and the Commodity Futures Modernization Act (which lifted all regulations governing derivatives)  created the 2nd worst economy for 98% of all Americans since 1776  –  except for sociopathic greedy billionaires (who funded the army of lobbyists who paid off the 90 members of the Senate who voted for the two poison pills) and all the people (including numerous progressives) living in a Sacs 5th Avenue bubble.

“House votes for bipartisan change to Dodd-Frank on bank swaps” 

“A bipartisan tweak to the Dodd-Frank financial reform law passed the House Wednesday, one that would give banks more flexibility to use complex financial instruments known as swaps to hedge risk….The House passed the Swaps Regulatory Improvement Act, H.R. 992, in a 292-122 vote that saw 70 Democrats join all but three Republicans. Republicans voting against it were Reps. John Duncan (Tenn.), Walter Jones (N.C.), and Thomas Massie (Ky.)….” http://thehill.com/blogs/floor-action/votes/188702-house-votes-for-bipartisan-change-to-dodd-frank-on-bank-swaps

So 70 Dems joined the American Taliban Teapublican Terrorists – how nicely partisan, and so wrong!

From 45 years of personal successful experience licensed as a principal in the securities business, and as the former owner of an NASD Member Firm, who was asked by the SEC to be on their list of Broker Dealers to submit all proposed rule changes to for comment – I know that Dodd-Frank is a charade that will not provide the protection necessary to avoid another, but infinitely worse than 2008, meltdown!  And my book in 1990 warned about the danger of having turned away from real investment to financial investment which does not create any capital formation – but does create net worth formation from the velocity of fees flowing from the egregious toxic leverage of financial innovation.  From my new book.

“By far the most significant event in finance during the past decade had been the extraordinary development and expansion of financial derivatives. These instruments enhance the ability to differentiate risk and allocate it to those investors most able and willing to take it – a process that has undoubtedly improved national productivity growth and standards of living.”  Alan Greenspan, Chairman, Board of Governors of the US Federal Reserve System, April 2005, and Genius. Who was the recipient of lots of outside income as a consultant to Investment Banks and Mega Banks, and leader in the fight against regulations!

Greenspan’s 2005 inscription in granite, like a commandment from God to Moses, came back into focus, for those of us who remember when all the financial markets fell apart only three years later. Did Greenspan, or any…”

“How We Got Swindled by Wall Street Godfathers, Greed & Financial Darwinism” is the only book that exposes the root cause as well as the all the primary controlling issues and culprits which combined to cause the 2nd worst economy since 1776 – and the worst financial inequality with the greatest shift of wealth to the already rich in the history of our Republic.

HR 992 only makes a bad situation worse, by fostering more risk which is borne by our treasury. It has been reported that there are $700 trillion to $1.2 quadrillion swap derivatives (without foundational value) circling the globe like a giant H-Bomb waiting for the right detonator.  HR 992 only gives Bank Holding Companies more authority to not care about America’s exposure to such reckless – too complex to explain – stuff to bet on in markets maintained for “liquidity” which means to provide a platform for Russian Roulette to gambol.

https://www.the5thestate.net/2012/12/01/your-worst-nightmare-the-coming-financial-plague/

The only way to protect America and the world from the largest financial tsunami ever is the pass Warren-McCain 21st Century Glass-Steagall — is to separate  commercial banks from their reckless sociopathic greedy investment banking sides which then takes the treasury out of having to back up failed or failing banks which contain investment banks.  Lehman was failed before it became a Bank Holding Company so the Fed had no obligation to bail it out.  But shortly thereafter the Fed allowed the major investment banks to become Bank Holding Companies so the Fed is now responsible for bailing them out.  All the risk is underwritten by us – our US Treasury.

https://www.the5thestate.net/2012/12/08/financial-russian-roulette-lethal-fantasy-investing/

For 70 Democrats to have voted for a bill written by Citi Bank lobbyists is malfeasance and criminally naïve and just plain stupid. This is to be expected from Teapublican Koch-pawns who are subservient to the sociopathic greedy narcissists who run Wall Street and pay for shills and Congressional leaders elections.
America can only hope that President Obama listens to Elizabeth Warren who completely understands how vile this bill is.  Keep in mind:  hedging is what you do when you know what you are about to do has an inordinately high probability of not working.