g5000
Diamond Member
- Nov 26, 2011
- 127,128
- 70,849
- 2,605
As commodities futures and derivatives began to get more and more complicated, the SEC and the CFTC had a lot of turf wars over who would regulate these ever more complex instruments. The turf wars resulted in deadlock.
Then, the Commodities Futures Modernization Act of 2000 ended the deadlock by making all of them virtually completely unregulated.
The speculators were unleashed, after 65 years of containment.
Hello $4.00 gas.
Dodd-Frank created the Consumer Financial Protection Bureau (CFPB). Among other things, the CFPB is tasked with reining in speculators.
To do so, the CFPB has to define who are "end users" and who aren't.
Needless to say, the CFPB was completely mobbed by Goldman Sachs, JP Morgan, Morgan Stanley, and a long list of other speculators trying to get defined as "end users".
They are completely shameless about it, even though they are quite obviously not end users. But this is such arcane stuff way over the heads of the public's understanding of these issues that they can get away with it if they get the right people at the CFPB in their pockets.
And that is why Elizabeth Warren was completely unacceptable to them.
Because of speculators and because Wall Street hosed the economy so badly, derivatives contracts will have to be sold through exchanges. And if you want to buy or sell derivatives, you must make an insurance payment in the event one of the participants in the exchange defaults on its contracts.
You know, like Lehman Brothers. Lehman wrote contracts they could not fulfill. And LTCM before them. It's all about posting collateral, which they did not do. Or they multiply-posted the same collateral for multiple clients.
Because the interlopers screwed everything up and now even end users have to go through an exchange, this makes the cost of doing business go up for end users. This is completely unfair to end users.
And so the new law allows for end users to get a big discount on the amount of insurance they have to pay.
So that is why the big Wall Street firms who fucked everything up for everybody are now trying to get tagged as end users!
This is about as assholish as it gets. They screwed everything up and now they want to be treated the same as the victims. The victims being you, dear reader.
Then, the Commodities Futures Modernization Act of 2000 ended the deadlock by making all of them virtually completely unregulated.
The speculators were unleashed, after 65 years of containment.
Hello $4.00 gas.
Dodd-Frank created the Consumer Financial Protection Bureau (CFPB). Among other things, the CFPB is tasked with reining in speculators.
To do so, the CFPB has to define who are "end users" and who aren't.
Needless to say, the CFPB was completely mobbed by Goldman Sachs, JP Morgan, Morgan Stanley, and a long list of other speculators trying to get defined as "end users".
They are completely shameless about it, even though they are quite obviously not end users. But this is such arcane stuff way over the heads of the public's understanding of these issues that they can get away with it if they get the right people at the CFPB in their pockets.
And that is why Elizabeth Warren was completely unacceptable to them.
Because of speculators and because Wall Street hosed the economy so badly, derivatives contracts will have to be sold through exchanges. And if you want to buy or sell derivatives, you must make an insurance payment in the event one of the participants in the exchange defaults on its contracts.
You know, like Lehman Brothers. Lehman wrote contracts they could not fulfill. And LTCM before them. It's all about posting collateral, which they did not do. Or they multiply-posted the same collateral for multiple clients.
Because the interlopers screwed everything up and now even end users have to go through an exchange, this makes the cost of doing business go up for end users. This is completely unfair to end users.
And so the new law allows for end users to get a big discount on the amount of insurance they have to pay.
So that is why the big Wall Street firms who fucked everything up for everybody are now trying to get tagged as end users!
This is about as assholish as it gets. They screwed everything up and now they want to be treated the same as the victims. The victims being you, dear reader.
Last edited: