This will not end well for the average American or for our government, which will eventually be faced with another crisis of overextended “too big to fail” banks who we will be told must be bailed out with our tax dollars because otherwise we will suffer an even more catastrophic meltdown.
Trump’s economic advisers know this. They just don’t care; they probably figure there’s a good chance they will no longer be in office by the time the next bailout crisis arrives, and it’ll be somebody else’s problem. Either way, there’s a bunch of money to be made by the millionaire and billionaire class in the meantime, and that’s the clear priority.
And sure, some of that wealth will be lost in the inevitable crash…but as we saw in the last round of this, the likely response is another bailout of the wealthy, allowing them to recover before everyone else and further increase their obscenely outsized share of the nation’s wealth.
Oh the humanity! It took 80 years for our politicians to screw things up so badly that we had our 2nd flirtation with a depression. These idiots want to speed things up to 10 years.
“Hey guys, do you remember that super great weird thing we had that was slightly dishonest and completely didn’t work and crashed the f*-ing system?”
“F* yeah - We had to pass on that third home in Madrid.”
" I’m still sailing the same f*-ing boat we had! Fortunately it’s new to my second wife."
"OK, yeah, we all remember how it sucked - anyway - let’s do it again!’
(high fives all around and busy calls to minions)
Behold, the lure of riverboat gambling (with other peoples’ money)!
These Republicans never learn. When the crap hits the fan, they will gladly bail the banks out with our money- again.
they probably figure there’s a good chance they will no longer be in office by the time the next bailout crisis arrives, and it’ll be somebody else’s problem.
If it’s anything like 2008, they’ll find the most recent round of scapegoats to throw to the MSM as to why it’s certainly not THEIR fault. Last time around, it was all those horrible Black people who took out mortgages that they couldn’t afford and if it weren’t for THEM, things would be fine. Replace mortgages with student loans and there you go.
This is incredible.
Proprietary trading is nothing more than a zero sum transaction. If the big banks win on the trade then someone else lost. That’s it in a nutshell.
So if the big banks thought they would be the loser, do you think that they would go down that road? And given what they do (trading), they of course know who’s buying and who’s selling and for what prices.
So yes they are going down this road because a lot more often than not, they will not be the loser on those trades.
The Federal Reserve knows this.
Powell ex Investment Banker… could not see that coming.
Aw f***. This is just stupid. But the people who will be getting the bonuses are already saying “IBG, YBG”.
What the hell does PROFIT have to do with this? The issue is RISK and who will shoulder it. The average person will see no benefit from the profit, but they WILL be saddled with the LOSSES!
The proposal will be opened to public comment for 60 days.
It appears you can submit those comments here.
If you feel strongly about this issue, submit a comment to the body that has power to act, instead of (only) commenting here.
EDIT: thanks for pointing out that I had the wrong link.
I tried a bit harder to find the right one, and discovered that the comment period hasn’t yet opened (the proposal hasn’t yet been published in the Federal Register). Here is the official announcement from the Federal Reserve.
I will update this post with the correct link once it’s available.
Not sure that will do as much good as voting for democrats in November.
No more purity.
You know, if the banks gamble with my money, and give me a cut of the action, well, maybe I’d think okay.
But they don’t, do they. Anyone get any special interest payments from bank arbitraging?
Stockholders sort of get some, (as if the banks share prices were connected to reality and real bank value based on profits and assets and all that) but not really. And bank investors? We’re just chumps.
So just about the time I’m heading off to retirement if the banksters keep getting their rollbacks from Trump and McConnell, my IRA’s and 401Ks will be worth the same as Trump’s Bond. Bupkis.
This This This This This This This This This This This This This This This.
This time, “D” is all that matters.
Here we go again. Every financial disaster in this country’s modern history happened under the Republicans.
That particular link is to a page where the comments were closed in 2017.
Problems is US taxpayers are on the hook if banks fail. Upside profit all goes to the banks and their shareholders. Downside risk goes to the taxpayers.
The largest U.S. banks would have leeway to take riskier trading bets for their own profit under proposed changes the Federal Reserve unveiled Wednesday.
Do you have living during Greatest Worldwide Economic Depression in History on your “bucket list”? If so, you may be in luck. So … Good luck.
If not, and this proposal is adopted, there’s never been a better time to begin wearing ever-larger butt plugs. For when you take it this time, it’s really going to hurt.
Fun Fact: Number of executives responsible for the last economic crisis jailed: 0
Yet another reason to despair of this administration. The bad just never stops coming.
Greedy banksters using other people’s money?
What could possibly go wrong with this?
Wait, while I put some money in my Bears Stearns account to buy some Enron stock.