nome Posted February 4, 2017 Share Posted February 4, 2017 I know this has been mentioned in the Trump thread and it's not (yet) a full on repeal of Dodd Frank, but I still think it's worthy of it's own thread due to the implications for house prices and the economy... it seems to me like we can now look forward to another 2001-2008 all over again, another huge credit bubble brought about by irresponsible/fraudulent lending... and all this on top of the current QE/ZIRP fuelled bubble. Happy days! http://www.forbes.com/sites/antoinegara/2017/02/03/with-a-stroke-of-the-pen-donald-trump-will-wave-goodbye-to-the-dodd-frank-act/#5dc709465b64 Quote Link to comment Share on other sites More sharing options...
Si1 Posted February 4, 2017 Share Posted February 4, 2017 In America yes. But it didn't repeal the Basel regulations or S24 etc. Quote Link to comment Share on other sites More sharing options...
spyguy Posted February 4, 2017 Share Posted February 4, 2017 Dodd Fraould be classed as a wall street insider response to gfc. Its complex , and foes not address ghe fundementsl cause. Glass steagall was better. Basel3 on forcing banks to hold more capiral. The Fed reducing size and compkexity and adding more capital on top too. Chump faces a valancing act. His gormless free market (backed by tax payers) risk it. Us citizens are VERY angry at banks wallstreet. Quote Link to comment Share on other sites More sharing options...
Little Frank Posted February 4, 2017 Share Posted February 4, 2017 2 hours ago, Si1 said: In America yes. But it didn't repeal the Basel regulations or S24 etc. Capital is mobile It was US credit derivatives which caused the global banking system to freeze & the resultant (temporary) crash in asset prices Quote Link to comment Share on other sites More sharing options...
Si1 Posted February 4, 2017 Share Posted February 4, 2017 2 minutes ago, Little Frank said: Capital is mobile It was US credit derivatives which caused the global banking system to freeze & the resultant (temporary) crash in asset prices Ok Gordon. Quote Link to comment Share on other sites More sharing options...
zugzwang Posted February 4, 2017 Share Posted February 4, 2017 Failed casino operator represents interests of failed casino bankers? Colour me unsurprised. Quote Link to comment Share on other sites More sharing options...
BorrowToLeech Posted February 4, 2017 Share Posted February 4, 2017 (edited) 1 hour ago, spyguy said: Dodd Fraould be classed as a wall street insider response to gfc. Its complex , and foes not address ghe fundementsl cause. Glass steagall was better. Basel3 on forcing banks to hold more capiral. The Fed reducing size and compkexity and adding more capital on top too. Chump faces a valancing act. His gormless free market (backed by tax payers) risk it. Us citizens are VERY angry at banks wallstreet. I have to agree with this. Its the same as the repeal of Obamacare. It doesn't really tell you anything because neither Obroomacoire nor Dodd-Fraould are very good, just slightly better than what went before. The assumption is that he'll do worse, and I agree that that's likely, but we don't actually know what he's going to do. Edit: also, brexit. Edited February 4, 2017 by BuyToLeech Quote Link to comment Share on other sites More sharing options...
spyguy Posted February 4, 2017 Share Posted February 4, 2017 2 minutes ago, BuyToLeech said: I have to agree with this. Its the same as the repeal of Obamacare. It doesn't really tell you anything because neither Obroomacoire nor Dodd-Fraould are very good, just slightly better than what went before. The assumption is that he'll do worse, and I agree that that's likely, but we don't actually know what he's going to do. Edit: also, brexit. I see we are using the same tablet... Obacare is not too bad, just needs some fiddling round the edges. Medicare is out if vontrol, they to scap that for oaps and force the healthcare issue. Quote Link to comment Share on other sites More sharing options...
Peter Hun Posted February 4, 2017 Share Posted February 4, 2017 Nah, both too lazy to correct your typing. Quote Link to comment Share on other sites More sharing options...
Sancho Panza Posted February 4, 2017 Share Posted February 4, 2017 21 hours ago, nome said: I know this has been mentioned in the Trump thread and it's not (yet) a full on repeal of Dodd Frank, but I still think it's worthy of it's own thread due to the implications for house prices and the economy... it seems to me like we can now look forward to another 2001-2008 all over again, another huge credit bubble brought about by irresponsible/fraudulent lending... and all this on top of the current QE/ZIRP fuelled bubble. Happy days! http://www.forbes.com/sites/antoinegara/2017/02/03/with-a-stroke-of-the-pen-donald-trump-will-wave-goodbye-to-the-dodd-frank-act/#5dc709465b64 Why let the truth get in the way of the Liberal media. Who repealed Glass Steagall? Bill Clinton. 13 hours ago, spyguy said: Dodd Fraould be classed as a wall street insider response to gfc. Its complex , and foes not address ghe fundementsl cause. Glass steagall was better. Basel3 on forcing banks to hold more capiral. The Fed reducing size and compkexity and adding more capital on top too. Nice to see a more measured response. Good article below pointing out the vast failures of Dodd Frank. http://www.investors.com/politics/editorials/fixing-whats-wrong-with-dodd-frank-and-thats-a-lot/ 'The Dodd-Frank Act was floated to the public on a raft of promises. It would end too-big-to-fail, restore faith in banks, end the roller-coaster on Wall Street and boost economic growth. It did none of these things. In a recent Op-Ed for The Dallas Morning News, Texas Rep. Jeb Hensarling, the chairman of the House Financial Services Committee, sums up the damage: "Since the law's passage, the big banks have gotten bigger, the small banks have gotten fewer, and Washington bureaucrats have been empowered to officially designate some firms too-big-to-fail, setting them up for the next round of bailouts. Instead of lifting our economy, small business lending from banks has declined, and the rate of new business startups is near a 20-year low. Entrepreneurship has dropped to a generational low." That's how such a bad bill as Dodd-Frank came about. It was a bad law based on bad data.' If they'd have brought back Glass Steagall,they would have achieved more.But obviously,that wouldn't have suited the big banks who hire people like Hilary to speak. It's reminiscent of the **** up by the BoE who wanted to stimulate small business lending and came up with the FLS which ended up back in the hands of the big banks as all it did was pump prime BTL borrowing. Quote Link to comment Share on other sites More sharing options...
Sancho Panza Posted February 4, 2017 Share Posted February 4, 2017 12 hours ago, zugzwang said: Failed casino operator represents interests of failed casino bankers? Colour me unsurprised. Failed casino bankers were backing Hilary to be fair Quote Link to comment Share on other sites More sharing options...
slawek Posted February 4, 2017 Share Posted February 4, 2017 10 minutes ago, Sancho Panza said: Failed casino bankers were backing Hilary to be fair They are backing whoever is in power. Quote Link to comment Share on other sites More sharing options...
spyguy Posted February 5, 2017 Share Posted February 5, 2017 8 hours ago, Sancho Panza said: Why let the truth get in the way of the Liberal media. Who repealed Glass Steagall? Bill Clinton. Nice to see a more measured response. Good article below pointing out the vast failures of Dodd Frank. http://www.investors.com/politics/editorials/fixing-whats-wrong-with-dodd-frank-and-thats-a-lot/ 'The Dodd-Frank Act was floated to the public on a raft of promises. It would end too-big-to-fail, restore faith in banks, end the roller-coaster on Wall Street and boost economic growth. It did none of these things. In a recent Op-Ed for The Dallas Morning News, Texas Rep. Jeb Hensarling, the chairman of the House Financial Services Committee, sums up the damage: "Since the law's passage, the big banks have gotten bigger, the small banks have gotten fewer, and Washington bureaucrats have been empowered to officially designate some firms too-big-to-fail, setting them up for the next round of bailouts. Instead of lifting our economy, small business lending from banks has declined, and the rate of new business startups is near a 20-year low. Entrepreneurship has dropped to a generational low." That's how such a bad bill as Dodd-Frank came about. It was a bad law based on bad data.' If they'd have brought back Glass Steagall,they would have achieved more.But obviously,that wouldn't have suited the big banks who hire people like Hilary to speak. It's reminiscent of the **** up by the BoE who wanted to stimulate small business lending and came up with the FLS which ended up back in the hands of the big banks as all it did was pump prime BTL borrowing. Theres still loads of 'respected political economist' commentators, Martin Wolf is the most prominent, Davos man. When the whole bank growing balance sheets, light regulated thang was happening, he trotted out the same line as Brown/Balls, whod copied it from Greenspan - Banks better regelater,cannot see a bank making a bad loan, etc. When the whole sh1t hit fa pns,Wolf exclaimed 'Babks appear to hsve lent 90% of their balance sheet to real estare!' And he was surprised! Unbelievable! Hes spent 40 odd years, cocktail partying, schmoozing and all that and never once looked at how much leverage bankd had, what poor loan unwriting they had, and where the money was going. Quote Link to comment Share on other sites More sharing options...
spyguy Posted February 5, 2017 Share Posted February 5, 2017 There was also dumbfck law on inclusive lending i.e a law that was pitched as getting rid of ''discrimination' in mortgage loans which was nothing more than a thin cover on loanshark lending to people banks should not have touched with a barge pole. Quote Link to comment Share on other sites More sharing options...
spyguy Posted February 5, 2017 Share Posted February 5, 2017 21 hours ago, Little Frank said: Capital is mobile It was US credit derivatives which caused the global banking system to freeze & the resultant (temporary) crash in asset prices All the UK problems were domestic banks, lending money to Uk nationals. There had been a dmaller dcsle test run in 2000 when Abbey national went under due to converting its balance sheet to high yielding comercial leasing loans, which failed. Thats where Steve hester made his rep - sweeping up bank gargage. Quote Link to comment Share on other sites More sharing options...
spyguy Posted February 5, 2017 Share Posted February 5, 2017 Dodd-Frank is a job xreation scheme for ws lawyers and regulators. When it comes to law then simple is better. If parts of finance is too complex to be regulated by government i.e plodding public sector oversight, and some is, then it needs to have hov backstop renpmoving and hold expotential more capital. Yo be hinest, parts of the Fed/Boe understand this. always have.It when you get a loan like Greenspan or brown/balls in power. Quote Link to comment Share on other sites More sharing options...
Ah-so Posted February 5, 2017 Share Posted February 5, 2017 The letter to Yellen from McHendry was very clear that there should be no more international cooperation. https://ftalphaville-cdn.ft.com/wp-content/uploads/2017/02/02155349/McHenry-letter-to-Yellen1.pdf It's quite scary since it attacks everything that that was put in pave post-crisis. Quote Link to comment Share on other sites More sharing options...
Futuroid Posted February 5, 2017 Share Posted February 5, 2017 Trump was always going to try and engineer a bubble. He copied Regan right down the catch phrase ("make America great again") and the baseball cap, so why not try some Reganomics/Trumpanomics to get the party jumpin before the next election in 4 year? I would imagine he's also going to try for a new war. Iran is being put in the frame as the fall guy already. Quote Link to comment Share on other sites More sharing options...
zugzwang Posted February 5, 2017 Share Posted February 5, 2017 4 hours ago, spyguy said: All the UK problems were domestic banks, lending money to Uk nationals. There had been a dmaller dcsle test run in 2000 when Abbey national went under due to converting its balance sheet to high yielding comercial leasing loans, which failed. Thats where Steve hester made his rep - sweeping up bank gargage. Not true. HSBC, RBS and Barclays had major exposure to US subprime, quite apart from their separate involvement in Libor rigging, derivatives trading, securities fraud etc. Quote Link to comment Share on other sites More sharing options...
Noallegiance Posted February 5, 2017 Share Posted February 5, 2017 2 hours ago, Futuroid said: Trump was always going to try and engineer a bubble. I'm curious as to which bubble you refer? Continuing all the bubbles in existence or forming a new one in an asset class we don't know about? As far as I can tell, stocks, bonds and real estate are all in bubbles. What's left to engineer? Quote Link to comment Share on other sites More sharing options...
spyguy Posted February 5, 2017 Share Posted February 5, 2017 15 minutes ago, zugzwang said: Not true. HSBC, RBS and Barclays had major exposure to US subprime, quite apart from their separate involvement in Libor rigging, derivatives trading, securities fraud etc. Hsbc and barclays did not go bust. Rbs was a whole off the scale fckup Quote Link to comment Share on other sites More sharing options...
zugzwang Posted February 5, 2017 Share Posted February 5, 2017 2 minutes ago, spyguy said: Hsbc and barclays did not go bust. Rbs was a whole off the scale fckup Barclays might have gone bust without the Qataris. Quote Link to comment Share on other sites More sharing options...
Futuroid Posted February 5, 2017 Share Posted February 5, 2017 19 minutes ago, Noallegiance said: I'm curious as to which bubble you refer? Continuing all the bubbles in existence or forming a new one in an asset class we don't know about? As far as I can tell, stocks, bonds and real estate are all in bubbles. What's left to engineer? Maybe you know differently but I don't think US real estate is in a bubble. Tax cuts/refund -> inflation -> "booming" house prices -> feelgood factor -> election win. Toss in an "evil empire" to fight against (obviously not the Russians this time as he is their man) and you are following Ronnie's blueprint to a tee. Quote Link to comment Share on other sites More sharing options...
Noallegiance Posted February 5, 2017 Share Posted February 5, 2017 14 minutes ago, Futuroid said: Maybe you know differently but I don't think US real estate is in a bubble. Tax cuts/refund -> inflation -> "booming" house prices -> feelgood factor -> election win. Toss in an "evil empire" to fight against (obviously not the Russians this time as he is their man) and you are following Ronnie's blueprint to a tee. http://www.economist.com/blogs/graphicdetail/2016/08/daily-chart-20 Quote Link to comment Share on other sites More sharing options...
Futuroid Posted February 5, 2017 Share Posted February 5, 2017 30 minutes ago, Noallegiance said: http://www.economist.com/blogs/graphicdetail/2016/08/daily-chart-20 Outside of SF it Isn't even beating the 2006 highs yet! The DJI is 80% up on 2006. How many hundreds of billions have the printed since 2006? With the right (ahem) stimulus package, US house prices could probably rise 50%-100% from here. This is not financial advice. Quote Link to comment Share on other sites More sharing options...
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