US to shine light on derivatives trading

**michaelr** · 22nd April 2010 06:36 PM

US to shine light on derivatives trading

Someone may need to help me here...read this...

Senator Lincoln's Bill includes proposals that would stop banks who participate in the swaps market from gaining access to the Federal Reserve's discount window. If banks want to continue trading in derivatives, they will be forced to hive off such desks into separately capitalised entities. It also increases transparency for derivatives trades, calling for most to be performed through regulated exchanges and settled through clearing houses.

The fucking federal reserve is buying asset backed securities for Christ sake. That is a term for derivatives.

Are they saying they can be the only entity allowed to deal in this trash, or what?

**william the wierd** · 22nd April 2010 07:15 PM

[quote name='michaelr' date='22 April 2010 - 08:36 PM' timestamp='1271982987' post='142533']

US to shine light on derivatives trading

Someone may need to help me here...read this...

The fucking federal reserve is buying asset backed securities for Christ sake. That is a term for derivatives.

Are they saying they can be the only entity allowed to deal in this trash, or what?

[/quote]I have no idea. What specific swaps is this woman talking about? If this is being reported properly then even the sponsor is clueless as to intent.

**michaelr** · 22nd April 2010 07:23 PM

[quote name='william the wierd' date='22 April 2010 - 06:15 PM' timestamp='1271985334' post='142543']

I have no idea. What specific swaps is this woman talking about? If this is being reported properly then even the sponsor is clueless as to intent.

[/quote]

I agree, and still confused. I will get more by the AM, maybe answer some of the lingering questions.

Call sometime Will!!

**william the wierd** · 22nd April 2010 07:44 PM

I did a reread and here is the purported intent:

Go poof and create a derivatives market with presumably spot, futures and options pits and do so for every major/critical derivatives market. This is a good idea in theory but where will it be located and how will all the necessary legalware, hardware, software, wetware, encryption and communications be financed? For that matter who can insure a probable quintillion dollar nominal annual market against disaster? A 0.0001% tax on transactions and clearances would generate $1T annual revenues because the entire world would use the market. About 400 billion would go to triple redundancy in power supply, AAD, anti-missile defence and so on. That will create jobs for sure.

If passed some senator is going to bring home the bacon big time and it will be a small population state. My guess as to the no flight zone is a 50 mile radius shoot to kill zone and a 50-100 mile intercept zone and zero airports within that zone. Does Lincoln understand what all of those big words mean?

I am truly confused.

**michaelr** · 22nd April 2010 08:22 PM

I think i may have a grip, see how this works. They will use this to selectively enforce who gets cheap loans. Buy their derivatives or none.

Just thinking here...

**william the wierd** · 23rd April 2010 03:02 AM

[quote name='michaelr' date='22 April 2010 - 10:22 PM' timestamp='1271989377' post='142573']

I think i may have a grip, see how this works. They will use this to selectively enforce who gets cheap loans. Buy their derivatives or none.

Just thinking here...

[/quote]

It they are even half bright in DC, a questionable proposition not about the individuals but the corporate body, they will just run with it. Ask Freckles she lives there organizational structure more or less forces stupid and reactive decisions out of even the brightest bureaucrats.

**michaelr** · 23rd April 2010 06:44 AM

[quote name='william the wierd' date='23 April 2010 - 02:02 AM' timestamp='1272013377' post='142650']

It they are even half bright in DC, a questionable proposition not about the individuals but the corporate body, they will just run with it. Ask Freckles she lives there organizational structure more or less forces stupid and reactive decisions out of even the brightest bureaucrats.

[/quote]

I don't think their decisions are stupid, I do seem that way to us, but lets face it, they have handed the economy over to a very few, and that took brains and balls. Criminal and greedy yes, but not stupid or stupid decisions.

**william the wierd** · 23rd April 2010 02:47 PM

[quote name='michaelr' date='23 April 2010 - 08:44 AM' timestamp='1272026659' post='142690']

I don't think their decisions are stupid, I do seem that way to us, but lets face it, they have handed the economy over to a very few, and that took brains and balls. Criminal and greedy yes, but not stupid or stupid decisions.

[/quote]

They handed off money to outright incompetents such as GS. That fits my definition of stupid.

**michaelr** · 23rd April 2010 03:27 PM

[quote name='william the wierd' date='23 April 2010 - 01:47 PM' timestamp='1272055679' post='142820']

They handed off money to outright incompetents such as GS. That fits my definition of stupid.

[/quote]

No, A Goldman Sachs exec or two did, one is a fed chairman, the other a US Treasury Secretary, that is high-jacking and out right theft by not only them, but by the clown who appointed them.