Go, Economy!

[Some Stupid Japanese Name]

"The $2 billion pre-tax loss is about one month of earnings for the firm, which had profit of about $25 billion pre-tax last year, Elliott explained in a Brookings paper."
Well, that explains why they can't afford to pay me more than 2% for the 5 year CD I have.

[Diff-chan]

Jon Thune, loser Republican Congressman, literally said that we shouldn't put in more regulation because of this if it "impairs their ability to mitigate risks." SERIOUSLY. HE SAID THAT.

I feel like I am living on a different planet from all these people.

Are you really this dense?

Obviously. Four years in and the phrase systemic risk also means nothing to him. Gives you an idea of what you're dealing with.

[GohanX]

actually throw caution to the wind and let which ever bank that does this fail regardless of size and ride whatever storm comes after.

I like this option.

[Bojack]

I like this option.

Even if the ensuing storm trashed the world economy?

[dave is ok]

Even if the ensuing storm trashed the world economy?

Yep. At least then the financial industry wouldn't have the means to rewrite law.

[GohanX]

Even if the ensuing storm trashed the world economy?

Maybe it's what we need to fix the system. Nothing's going to change unless the people do something about it, and as much as people bitch and moan about the bad economy these past few years it really hasn't been bad enough for anyone to really do anything about it. A global economic catastophe would certainly move people to action.

[Yoshi]

Are you really this dense?

Proprietary trading is basically a bank taking someones checking account deposits and gambling with them in order to make money for themselves. We shouldn't give any bank engaging in prop trading (or in this case, prop trading disguised as "hedging") FDIC insurance. That isn't what it was created for.

Totally agree. It's just another form of federal meddling.

You know where my checking account is? At a credit union where they don't take stupid risks. Vote with your dollars and keep the feds the fuck out of it.

[Yoshi]

actually throw caution to the wind and let which ever bank that does this fail regardless of size and ride whatever storm comes after.

You're coming around, my friend.

Yep. At least then the financial industry wouldn't have the means to rewrite law.

Exactly. The integration of the government and business is bad in lots of ways, and you're dead on one of them.

[Diff-chan]

Credit union deposits are insured by the federal government.

http://en.wikipedia.org/wiki/Nationa...Insurance_Fund

[Yoshi]

Right, but they don't gamble as aggressively. That was the point I was making.