Financial Reform or Feel Good Reform?

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Senator Dodd is pushing his financial reform bill caving-in to the Fed’s request to be the super-regulator and ignoring the Fannie Mae, Freddie Mac quagmire. No doubt staying away from decisions on the GSE’s is related to debt acknowledgement on the US’s balance sheet but how in the world does anyone think serious reform of [...]

Grading on the curve

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The Board of Governors of the Federal Reserve finally made the results of its much anticipated ‘too big to fail’ “stress test” public today (May 7, 2009) and 10 of the 19 banks require more billions–about $75 billion. Bank of America headed the list needing $33.9 billion; Wells Fargo was next requiring $13.7 billion; GMAC [...]

Ginne Mae must be dealt with also!

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Wouldn’t you think that in all the hearings before Congress somehow we would hear mention of the Government National Mortgage Association (GNMA), the mortgage behemoth that is a direct obligation of the US Government?  After all GNMA guarantees only moderate income and Sub-prime loans and these are the mortgages with the  highest loan default rates. [...]

What’s wrong with the Trickle-Down Bailout?

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Federal Reserve Chairman Bernanke and Treasury Secretary Paulson have proposed what they say is a comprehensive bailout plan that promises to restore the US financial system to health.
A key component of their plan is to overpay for US banking assets with hopes that down the road, time will bail us out when the crisis passes [...]

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