Hiding Consumer Protection Inside the Fed's Insulation is NOT Financial "Reform"

If you have been holding out on joining the doom and gloom camp because you are looking for evidence that our position is a valid one, look no further than Washington.


"I had hoped that the vote today would have allowed the Senate to move to consideration of Wall Street reform in a bipartisan manner," said Democratic Senator Tim Johnson.

"Instead, the minority has decided it's better to delay another day. The Republicans also have yet to put forth their proposal on this because they don't want the American public to know if it's tilted in favor of Wall Street."

The Democrats' bill would set up an "orderly liquidation" process for dismantling large financial firms in distress, aiming to prevent more taxpayer bailouts like that of insurer AIG in 2008 and avert bankruptcies like the shocking collapse of Lehman Brothers in the same year, which paralyzed markets.

The bill would create a new financial consumer protection watchdog inside the Federal Reserve; impose regulations on the unpoliced $450-trillion over-the-counter derivatives markets; curb risky trading by banks; force hedge funds to register with the government; and crack down on debt securitization.

When even Dirty Fed operatives are protesting and calling out the absurdity of housing an agency like this inside the Fed (Dodd's reasoning is obvious, no?), it may be worth paying attention to. I know what you're thinking: of course Dirty Fed operatives are going to protest, this once again tightens the screws on the Fed's nutvice by regulating financial innovation to the point that the Fed may not even be needed for overnight loans (just one on a laundry list of preferred Fed tactics to keep their unstable banking system appearing as though it is solvent and sane). If they clamp down hard enough, they'll eventually eliminate the Fed entirely, leaving only a few check processing joints and maybe a secret bunker or two.

The Fed has already been thrown in the Briar Patch at this point, anything that you may hear from here on out could be actual cries of "please, no, don't!" from the Fed but who can say?

Oh and in case you don't already know, Dodd (and crew) are merely interested in creating an agency safely quarantined from pesky intrusions like full audits (think more protology exam than audit) and self-funding. He can loot the Fed AND do whatever within the agency and there's not really shit you can do about it because it will be stashed inside of the Fed. Tricky bastard but I don't see how that's going to work, nor how the Fed is going to go for it.

Let's keep in mind that the fuckers are holding $2 trillion of our investments right now and they've sort of screwed up the whole dollar thing so we probably want to distract them as little as possible while they figure that out.

Jr Deputy Accountant

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.