Roubini: New Regulations "Go in the Right Direction," But Not Far Enough

"Obama's proposal would require the Federal Reserve, which now can independently use emergency powers to bail out failing banks, to first obtain Treasury Department approval before extending credit to institutions in "unusual and exigent circumstances," a change designed to mollify critics who say the Fed should be more accountable in exercising its powers as a lender of last resort." This concerns me and many. Larry Summers is leveraging the public outrage toward Fed against the Fed. This way, he can force Fed to be his money source. In this sense, Fed would lose its independence and bent more towards money supply. This is a disastrous move in the making. Ladies and Gentlen,

How to demonstrate peacefully on July 4. Simply take the week off without pay (or a day or two as can be afforded) so that less money is sent to the Socialist Governor’s and Washington know it alls. This is one form of revolt by used in Sweden in 1979. PS. Corzine bent over for the unions.

"Obama's proposal would require the Federal Reserve, which now can independently use emergency powers to bail out failing banks, to first obtain Treasury Department approval before extending credit to institutions in "unusual and exigent circumstances," a change designed to mollify critics who say the Fed should be more accountable in exercising its powers as a lender of last resort." This concerns me and many. Larry Summers is leveraging the public outrage toward Fed against the Fed. This way, he can force Fed to be his money source. In this sense, Fed would lose its independence and bent more towards money supply. This is a disastrous move in the making. Ladies and Gentlmen, this ensures a 100% fiscal role the Fed will assume in the future. It is much worse. The approval must come from the congress, not the treasury. Call your congressman to stop this Larry Summers scam.

If the stock market typically projects 6 months in advance, it must have predicted that Obama would be elected. No free market = No confidence.

Ron Paul and Roubini in 2012 if we are still in business.

No one comes out and tells you about the velocity of capital. If you take away the "uptick rule" ...if you take away margin & allow "naked shorting" the volatility escalates....then let the "ones in charge" GS MS JPM C BAC WFC create an insiders market of CDS with no regulation the end result is the velocity of money escalates which creates more credit demand....they can't make it fast enough. And now we are printing more money to cover old debt to whom? Try BRIC, Saudi & middle east...they are holding us hostage with our own money....greed.

This era was written in stone when the regulation eased 2 decades ago. After the dot com bust and new Bush admin policies, we knew it was too good to be true. We took whatever we could as fast as possible knowing the policies were lopsided, favorable, would be taken away soon enough and would lead to some sort of collapse. Really- a huge self-fulfilling policy. Very few winners.

Compensation wouldn't be an issue if banks didn't 'profit' so much. These 'profits' are what killed our economy. The compensation issue is a smoke screen for the umbrella of financial corporate crime.

You anti-Obama zealots still don't get it and you apparantly never will. Talk about drinknig the kool-aid...put down the fox news kool-aid for just a few days and think for yourself! How long has this probelm been unfolding? In your world, it all happened in the last five and 1/2 months. Sure, that makes sense. This crisis formed, evolved and blew up JUST after Jan. 21, 2009.

I don't have the money to invest right now. Maybe in a few months.

Just in case anyone is wondering the Fed Reserve is a privately owned bank and has nothing to do with our government aside from increasing our national debt and profiting mightily from taxpayer dollars. Read the Creature From Jekyll Island: A Second Look at the Federal Reserve by G. Edward Griffin. It is so shockingly enlightening and will make you oh so mad at how we have been duped. The only reason we are doomed to repeat history is because they keep thinking that we have forgotten.

BS......The regulations have been in place. The Feds namely Dodd and Frank with a assists from Schumer failed on their banking oversight duties. Dodd got $100K and Frank got free dates from Fannie Mae. Any attempt to address the subprime slime/bubble mortgage crisis was shot down by these three. The banking system has been more transparent than the Obamistration at any time in history. Reps/Dems have shown nothing but incompetence in their oversight duties and now now they want more regulations and oversight; give me a break...They have'nt even been able to run the House/Senate cafeteria much less a country.

Count me as confused. I didn't realize Roubini was for the illuminati and more concentrated power for Goldman and the Fed. Wow, actually, I'm schocked.

Whit Chambers is right.

This guy gets way too much air time for am amateur

same talking heads week after week.

I think they've hit on it, make every bonus, from traders to CEO's, 25% cash and 75% in the instruments they create.

Obama is a nut. He wants to give regulatory powers to the same Fed that engineered the housing bubble. http://solari.com/blog/?p=2293 One story, for example, is the following: “In 1995, a senior Clinton Administration official shared with me the Administration’s targets for Fannie Mae and Freddie Mac mortgage volumes in low- and moderate-income communities. We had recently reviewed the Administration’s plans to increase government mortgage guarantees — most of these mortgages would also be pooled and sold as securities to investors. Even in 1995, I could see that these plans would create unserviceable debt loads in communities struggling with the falling incomes expected from globalization. Homeowners would default on mortgages while losses on mortgage-backed securities would drain retirement savings from 401(k)s and pension plans. Taxpayers would ultimately be hit with a large bill . . . but insiders would make a bundle. I looked at the official and said that the Administration was planning on issuing more mortgages than there were houses or residents. “Shut up, this is none of your business,” the official snapped back.”

Regulation alone is not the causes of all past and current global housing, credit, financial, asset price bubbles burst crisis, recession!. Based on my tracking of last 30 years casues, onset, recovery of global crisis,it all due to poor knowledge and ignoring macro monetary, econic fiscal policy impact on, financial, industrial economic asset prices. Global monetary policy maker choose to ignoring housing price bubble exist in 2003 as I warned on Nove. Singapore, Beijing, Shanghai Global, Asian Finance, Capital Market conferences that US, China facing overheated housing price bubble,it nedd to raise interest rates ( it did raise rate, just too little, too late through 2006, stop rate hikes lead to money supply growth from 5 to 8 % in 2007, for US, and 15 to 20 for China, resulted housing price soared over 400 % in some coastal cities,I warned again 2007 in Beijing international financial risk management conference and 2008 on China fund world March 2008 Pudong, that US, China facing run away inflation due to ratres cuts, housing and stock price bubbles burst, plunge 50- 70 %, Oil commodities prices doubled, and plunged 70 % through 2009 Global banking, finance, corproate CEO using 30 year old probability, statistics based financial decision modeling ,following central banks ignoring the asset prices bubbles, betting on the wrong side of asset prices, lead to trillion dollar loss in housing, stock, commodities, asset prices, the poor regulation just make the crisis spread faster, can not stop bubble from burst and trillion dollar betting on the wrong side of investent and credit rating resulted MBS, CDO,CDS hedging. details con be found on www.osawh.com/bfreform.htm www.osawh.com/mortdefa.htm www.osawh.com/econ.htm www.osawh.com/centmaf.html www.osawh.coom/commody.html www.osawh.com/SP500.htm

Roubini got lucky with one of his predictions. Out of the many...that's it. None of these guys know what's going on, or what will happen and most of all, none of them agree with each other. Do your research, listen to opinions but go with your gut feeling.