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Trade stocks by day, and at night am writing a historical epic about the ancient Mayan civilization. "Maya: Spirits Of The Jaguar" is a sweeping saga set in the ancient and magical Mayan landscape where a wronged family struggles against prophecy, power, treachery and forbidden love,... More
  • Obama Attempting To Reinstate Glass-Steagall Measures 7 comments
    Jan 21, 2010 2:38 AM

    President Obama intends to reinstate 1932 limits of bank risk-taking. 

    On November 12, 1999, backed by a 90-8 Senate vote, and a 362-57 House vote, President Clinton repealed the Glass-Steagle Act. For the better part of twenty years, the banks lobbied to have this act repealed.

    This repeal de-regulated the distinctions between loans, securities and deposits. 

    Before the Glass-Steagall Act was repealed, about 5% of loans were subprime. In 2008, subprime loans peaked at nearly 30%.

    The repeal of this act allowed the design and underwriting of mortgage-backed securities and collaterized debt obligations.    

    Republican, John McCain, and past Chairman of the Federal Reserve, Paul Voker, advocate the re-instating of some form of this act.

    It will be intriguing to how this plays out. Especially in how it appears that President Obama now has the big banks in his crosshairs.

    Below is a CNBC article that infers President Obama's intentions.

    Disclosure: No Positions

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Comments (7)
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  • Mark Bern, CFA
    , contributor
    Comments (7517) | Send Message
    Attempting or appearing to be attempting? That is the question.


    In its current form or in a less onerous (for the banks) form.


    Is this a move in the right direction, or just more grandstanding to help firm up his poll numbers? We will see.
    21 Jan 2010, 12:12 PM Reply Like
  • doubleguns
    , contributor
    Comments (9700) | Send Message
    Now what "act" can we put on Washington. I propose the "GOOOH" act be implemented.
    21 Jan 2010, 12:18 PM Reply Like
  • robert.b.ferguson
    , contributor
    Comments (10491) | Send Message
    I'm printing 12 letters tonight and distributing them tomorrow, look for one in a location near you courtesy of GOOOH. I think we all expected the POTUS to come out swinging after the MA setback. This may not even be the extent of his wrath. Now the question becomes will the house simply pass the Senate bill and send it to the oval office? Or will we go back to the drawing board to get some sane health care reforms like portability across state lines and Tort reform including looser pays as stand alone legislation? Stay tuned for the next exciting episode of As The Stomach Turns.
    21 Jan 2010, 06:06 PM Reply Like
  • Tom Au, CFA
    , contributor
    Comments (6879) | Send Message
    Obama has been so misleading in the past that he is not believed even when he starts telling the truth.
    2 Feb 2010, 06:42 PM Reply Like
  • Mayascribe
    , contributor
    Comments (11198) | Send Message
    Author’s reply » Graham: Happened to have Cramer on while I was in the kitchen making a six cheese, garlic infused fettecini Alfredo. He piled on Obama repeatedly, stating his bark is worse than his bite.


    I'm not sure what will come out of DC that will throw the market into a tizzy. I don't think the market, for the immediate future, cares what Obama says.


    I'm seeing his remarks and idle threats as trading opportunities. Just have to take better advantage of them.


    The foriegn markets and countries may have more negative affect than does our own government. Make all you can now, though, higher taxes are coming.
    2 Feb 2010, 07:42 PM Reply Like
  • Tom Au, CFA
    , contributor
    Comments (6879) | Send Message
    "I'm seeing his remarks and idle threats as trading opportunities. Just have to take better advantage of them."


    Go for it, bro!
    2 Feb 2010, 07:47 PM Reply Like
  • robert.b.ferguson
    , contributor
    Comments (10491) | Send Message
    It just keeps getting curioser and curioser. What will be the catalist for the next market swing? Team Obama gets meaningful and right headed reform in financials? Would the market be up or down on news that the bank holding companies and trading desks were being seperated? Would the investors get shares of both the parent and spin off, as when Ma Bell was broken up? Or would the banksters throw a temper tantrum and send the matket down? Watch the events and size up the rhetoric if you can they are likely to be contradictory.
    2 Feb 2010, 07:16 PM Reply Like
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