May 20, 2012

Volcker: “Wake Up, Gentlemen”

December 15, 2009 By Jason Paez Leave a Comment

Volcker has made a lot of splash recently, including his questioning whether financial innovation has improved society much since the ATM. This may or may not have been hyperbole on his part (the High Yield bond market led to some good innovations, for one), but it seems clear that he is indeed moving the ball along a different direction.

“Wake Up, Gentlemen”

The guiding myth underpinning the reconstruction of our dangerous banking system is: Financial innovation as-we-know-it is valuable and must be preserved.  Anyone opposed to this approach is a populist, with or without a pitchfork.

This is a preview of Volcker: “Wake Up, Gentlemen”. Read the full post (212 words, 1 image, estimated 51 secs reading time)
Filed Under: Featured Contributors, Politics, Regulatory Tagged With: , , ,

Thoughts on Fed Exit Strategy

December 14, 2009 By Jason Paez Leave a Comment

The case against fractional reserve banking is an interesting one, though almost certainly fruitless (and unnecessary). However, the concern from Stephen Roach is something I share — there is a lot of risk in the upcoming unwind of Fed positions.

Relatedly, the Murray Rothbard suggestions are fascinating to read.

Thoughts on Fed’s Exit Strategy: Stephen Roach vs. Mish

Former Fed economist and current Morgan Stanley Asia Chairman Stephen Roach Sees ‘Great Risk’ in Fed Exit Strategy.

The Federal Reserve may cause another crisis by botching the withdrawal of liquidity from the U.S. economy, Morgan Stanley Asia Chairman Stephen Roach said.

This is a preview of Thoughts on Fed Exit Strategy. Read the full post (458 words, estimated 1:50 mins reading time)
Filed Under: Crisis Capital, Featured Contributors, Monetary Policy, Politics Tagged With: , , , , ,

Congress and Swiss Cheese Legislation

December 10, 2009 By Jason Paez Leave a Comment

Lobbying has long been a sore point for politics and unfortunately the activity does reflect a conflicting agenda vis-à-vis taxpayers on occasion. This is probably one of those times.

OTC derivatives are ground zero that led to the cascading bilateral counterparty collapse of 2008.

$344 Million Buys A Lot Of Loopholes

The world financial system nearly melted down in 2008. This was a result of the interlocking web of exposures between major financial institutions caused by the unregulated and completely opaque over-the-counter (OTC) derivatives market. The U.S. taxpayer was forced to pledge nearly $24 trillion in cash and loan guarantees to avert financial Armageddon. That amounts to approximately $200,000 for every household in America!

This is a preview of Congress and Swiss Cheese Legislation. Read the full post (955 words, 1 image, estimated 3:49 mins reading time)
Filed Under: Banking, Featured Contributors, Markets, Politics, Regulatory Tagged With: , , , , ,

More Compelling Than a “Vampire Squid”

November 24, 2009 By Jason Paez 1 Comment

I’m not all that into the vampire squid meme, but well supported arguments deserve attention in the arena of government influence. Clearly, evidence supports that Goldman is very good to their shareholders and employees. In my mind, this means they’re upholding their side of fiduciary responsibility.

If there is a problem embedded here (and likely there is), then responsibility should ultimately rest with our elected leaders.

Goldman/AIG Conspiracy Theories: There’s a Reason They Won’t Go Away

Note: this post is by Thomas Adams, at Paykin Krieg and Adams, LLP, and a former managing director at Ambac and FGIC, with some minor additions by yours truly. This is a significant piece of some puzzles he, some other experts who prefer to remain anonymous, and I have been pushing on for several months.

This is a preview of More Compelling Than a “Vampire Squid”. Read the full post (2412 words, 1 image, estimated 9:39 mins reading time)
Filed Under: Banking, Featured Contributors, Politics, Regulatory Tagged With: , , , , , ,
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