Drew Horn

Wall Street Breakfast: Must-Know News

The Obama crowd have adroitly skipped over the "too big to fail" issue. As long as capital reserve accounting standards remain the same and it is up to the banks to determine asset value, they will overvalue them to increase their real return on investment.

The old trick of moving auditors around till they are too confused to think straight has morphed into creating organizations that are so complex auditors/ regulators have no chance of truly understanding the firms they examine. The proposed changes in regulation are half measures designed to look like they are tough but allow the firms that are "too big to fail" to get bigger. If anything, the proposed change sets up the business cycle for greater peaks and valleys and eventual collapse.

Too bad, this is a missed opportunity to bring honesty and discipline to financial markets. But on the plus side, people like Paulson & Geithner, et al, have made a lot of Wall St friends and have the prospect of great jobs when they leave us with the mess they created.

Wall Street Breakfast: Must-Know News

You must admit, the whole thing gets to be more complex and interesting daily. It reminds me of the fellow on a street corner with a pea and walnut shells. He shows you exactly what he is doing, you understand it because what you see reinforces his claims, but ----- do you really see? Do you think you know? Do his actions move faster than your mind can comprehend?

Banks "too big to fail" take billions one day and give them back the next. Insurance companies (too big to fail) sell policies but have little or no reserves to pay claims but continue to sell "insurance". Mortgage borrowers & lenders commit fraud and tip the worlds economy into panic, and are then encouraged to use a future unearned tax credit for a down payment on the next house and mortgage.

The most interesting thing about this street corner game is that the fellow with the shells and pea is the president of the United States. And the people continue to watch and play his game!

Wall Street Breakfast: Must-Know News

You must admit, the whole thing gets to be more complex and interesting daily. It reminds me of the fellow on a street corner with a pea and walnut shells. He shows you exactly what he is doing, you understand it because what you see reinforces his claims, but ----- do you really see? Do you think you know? Do his actions move faster than your mind can comprehend?

Banks "too big to fail" take billions one day and give them back the next. Insurance companies (too big to fail) sell policies but have little or no reserves to pay claims but continue to sell "insurance". Mortgage borrowers & lenders commit fraud and tip the worlds economy into panic, and are then encouraged to use a future unearned tax credit for a down payment on the next house and mortgage.

The most interesting thing about this street corner game is that the fellow with the shells and pea is the president of the United States. And the people continue to watch and play his game!

Wall Street Breakfast: Must-Know News

You must admit, the whole thing gets to be more complex and interesting daily. It reminds me of the fellow on a street corner with a pea and walnut shells. He shows you exactly what he is doing, you understand it because what you see reinforces his claims, but ----- do you really see? Do you think you know? Do his actions move faster than your mind can comprehend?

Banks "too big to fail" take billions one day and give them back the next. Insurance companies (too big to fail) sell policies but have little or no reserves to pay claims but continue to sell "insurance". Mortgage borrowers & lenders commit fraud and tip the worlds economy into panic, and are then encouraged to use a future unearned tax credit for a down payment on the next house and mortgage.

The most interesting thing about this street corner game is that the fellow with the shells and pea is the president of the United States. And the people continue to watch and play his game!