Jade Queen

Too Big to Fail Banks: A Simple Solution

As I understand it, the feds are taking money from credit unions operating well to fund the obligations of failed credit unions. This could affect the competitiveness of local credit unions against banks. But local banks are suffering, with money not getting to Main Street.

Expecting big banks to share with depositors isn't logical, so there will not be competitive pressure, and both depositors and borrowers will get stung, more punishment of the less advantaged to pay bonuses to people CEO's like to call talent (if you think of it in relationship to Hollywood and fantasyland, that is kind of how it works).

Liquidating Freddie and Fannie could send some paper back to local solvent banks and credit unions in return for the payments to cover the failures. Maybe this would help to keep solvent ones from going out because they can't predict budgets, what with being held up for unpredictable amounts by the Feds or even by local robbers.

As for the big banks, as long as the CEO's maintain enough slush to support the protection racket (Congress and the Executive Branch), then it seems to be pretty much a closed loop, except that some of the big banks have investments in cities and companies that could bust if the little guys can't or won't buy stuff the companies and cities are counting on them to buy.

The timing of the shake-outs is what is hard to predict.

In the meantime, the foot soldiers of Empire are checking out, one way or another, so that loop is in some doubt as well. This is the saddest loop of all. Surely this would give the bonus brothers pause if they had eyes to see and hearts to feel with.

And then there are the drones, and I hear the latest weapons are called killer bees, to fuel war forever, unless the protection loop breaks and some perps do some walking.

7 Steps Towards Real Free Market Capitalism

I would rather have heard an alarm before a fire than not.

Dean Baker, on truthout, just had a piece about the folly of empire by force.

Ron Paul was the Paul Revere about this every time he could sound the alarm. It was a major reason for so much of his spontaneous support. It resonated across assorted social boundaries.

His offshore military supporters had expressly mentioned this when they sent in donations, as they explained what was going on with the corruption they were observing.

Is it OK when Dean Baker says it, but not when Ron Paul said it?

I am as unimpressed by Ron Paul's arguments about a Gold Standard as it is possible to be.

I have argued for bean or solar-cell standards personally.

Nonetheless, Ron Paul is an honest and straightforward human in Washington, D.C.

Even if he has odd leanings, he is an exceptional bit of non-fiction among Love Boat, Fantasy Island, and the Sopranos.

It remains to be seen whether Ron Paul's efforts to let us know where the booty went will be eviscerated.

Even if they won't make Fed dealings transparent, we could be in for some interesting municipal bond failures that may unearth some of the spoils garnered by international conglomerates favored by the usual suspects and precipitated by unfunded mandates.

I am nervous about municipal bonds. I just noticed all the second liens floating about with an unemployed populace expected to cough up the money that didn't make it to Main Street. I do hope Birmingham, Alabama, is not the start of a waterfall, or should I say a sewer fall, of bond failures.

What a mess that would be. They might have to clear some of the poor folks out of jails to make room for some cultural diversity. We seem to get token limousine perp-walks when there are deluges of fires and bubble-busts.

Why GM's Not the Only Company Rush Limbaugh Should Boycott

I appreciated the article and the comments. As to the comment about journalists not being trusted, I don't think anyone should trust one journalist's take on anything. Everybody's human, and that's only one take. Even if you go to the standard three sources, one could still not get enough of a 360-degree view, especially in these times. In this multi-cultural place, what's true in one spot may be not in another. Seeking Alpha seems to have a nice variety of viewpoints: left, right, up, down, extreme middle. I like hearing the different takes.

The Debate over Banking Reform, Part 2

I agree with both of you. I am curious about what you think about HR 1207, Ron Paul's fed transparency proposal. It has quite a few Democratic co-sponsors and a corresponding bill in the Senate. Do you think we have a chance for more transparency and consequently less ability of government collusion in facilitating TBTF? Aren't Freddie and Fannie TBTF and consequently shouldn't they come under the get-out-of-the-box rule? I would not be as opposed to mini-Freds, perhaps confined in their ability to take paper to say, only the paper from one state, especially if transparency and open books were required. Frankly, I would like it even better if it were busted down to county level. Then, if a local honcho comes up living a questionable lifestyle, the locals may notice the fancy ladies and the interesting cars, and ask some questions. Obama is on record as disapproving of TBTFs. Is there a way to make him perform on this?

Why I Need a Government Bailout

I am trying to start a very important blogging business creating cross-over good feelings between right fringies and left fringies. The left ones are all really cute vegan-activist cheerleading women who are upset about animal-eating but scared of guns. The right ones are fundamentalist second-amendment true believers. I need a billion, but I might be willing to settle for slightly less.

Thanks for the posting that prompted my personally slanted riff. I needed that. Cheers.