Thursday, May 14, 2009

in Today's News 05.14.09

The New Government-Controlled Economy.  (WSJ) "Federal regulators outlined plans to regulate the giant market of derivatives, a moved aimed at avoiding a repeat of the turmoil created last year by certain financial institutions whole risk-taking in exotic financial instruments went largely unchecked."  (Emphasis added.)

Here we have one of the keys to the crisis.  The Rothschild's and others like them seem to be agitated that financial entities not under their exclusive control were able to influence the market.  They are now making sure that doesn't happen again.  In tune with the theme of the measures taken by the Obama regime, the government is now setting up regulations that will enable the cryptocracy to control financial groups that may affect the market adversely.  The thrust of the new regulations is to make sure that the ruling financial families do not have to endure risk to their fortunes and investments.  

But, there is a little bit of camouflage going on here.  The economic crisis was brought about by banks under the control of the cryptocracy making huge numbers of mortgages that they knew perfectly well would never be repaid.  The big banks then sold these mortgages to 'certain financial institutions whose risk-taking...went largely unchecked.'  These institutions were caught off guard and brought to their knees when the big banks tightened credit to precipitate the economic crisis. 

So, to some extent what is happening with these new proposed regulations is a blaming of some of the victims (albeit some pretty big and influential ones) for the problem.  

Nonetheless the cryptocracy has spotted a weakness in their control mechanism that has to be corrected:  bring under supervision and restraint 'certain financial institutions' that could potentially affect the market negatively.



  

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