Since we can't understand a single word he is saying, we assume it is just the usual worthless drivel we have all grown to love and expect from the adorable megalomaniac. One part we could understand that caused an immediate liquification of our collective frontal lobes: we didn't feel like proposing the type of sweeping reform seen today, because "how do we not know that the next administration will not undo it and cause the kind of problems we had before." Then the Frankster says he will push off asset sales for 5 five years - just in time for this hypothetical "next administration" to come in an undo everything proposed by Obama. It is time Barney Frank follow the example of Dodd and spend much more time with his wife and children...
In Order To Make The Ponzi Market Keep Going Ever Higher, Barney Frank Tries To Make Shorting Virtually ImpossibleSubmitted by Tyler Durden on 01/06/2010 15:01 -0400
As part of the Barney Frank proposed Manager's Amendment, which will accompany HR4173, the "Wall Street Reform and Consumer Protection Act of 2009", are three little-noticed rules that, if adopted, will make shorting stocks if not impossible, then extremely problematic and difficult. It is obvious why these rules would end up in an amendment: the outcry from retail and institutional traders would have been huge had these proposals made the full text of the proper Bill, and into the full view of the Mainstream Media. So why bother with these - simple. As everyone is aware, Ponzi schemes only work when constantly growing, as otherwise they blow up, implode under their own weight, once price discovery is attempted by all. Case in point: when Madoff's securities was unable to find another greater fool in the face of collapsing asset values, the jig was up overnight, and the value of the pyramid went from $50+ billion to $0 instantaneously.
In this manner, Ponzies are like sharks - they need to swim to live: any deviation from the norm threatens their very survival. By comparison, shorting has always been the most traditional way to force price discovery: as idiot money pension funds tend to be long-only, selling only occurs in times when book gains have to be realized, and facilitates a rising market without any natural checks and balances. If this amendment passes, the entire equity market will have become Madoff securities to the dot. It will continue going up, until market values are a reflection of no underlying fundamentals, but simply the latest pension fund long-only dumb terminal willing to throw managed capital into the bonfire of an inevitable future stock market collapse. And, to borrow another page from the Madoff analogy, when the inevitable correction does occur, it would not be 10% or 20%: the entire worth of the Ponzi would be gutted.
Just occasionally, we feel as if we might be a little too harsh with Barney Frank. He has, after all, been something of a singular lightning rod for many of the more adverse consequences of the housing boom. Without question he has taken a disproportionate share of the heat generated by increasing scrutiny of Government Sponsored Entities like Fannie and Freddie. True, he was involved directly in crafting provisions of the Troubled Asset Relief Program. Indeed, as he chairs the House Committee on Financial Services, he is uniquely exposed to all things "credit crisis" and most things "bailout." Yes, his loose alliance with figures like, say, Maxine Waters, tends to draw sporadic sniper fire from the trenches (well, and sustained grazing fire from the MG42 nests). And, obviously, some of the more publicly scrutinized aspects of his personal life have aligned social conservatives against the Congressman. The combined effect of these disparate circumstances gives us pause in those moments when we begin to form our critiques of the Distinguished Gentleman from Massachusetts. Then we come to our senses.
Grayson Post-Mortem On Last Night's Historic Fed Transparency Victory And The Revelation Of Barney Frank's HypocrisySubmitted by Tyler Durden on 11/20/2009 12:08 -0400
After the historic defeat of Fed anti-transparency amendments, and the most recent disclosure that despite all his posturing Barney Frank is, as expected, deep in the pockets of the Wall Street and Fed kleptocracy, here are some post-mortem observations from Grayson, Spitzer and Ratigan.
Barney Frank's possible role in the mortgage meltdown . . .
In a May interview with Jane Hamsher and Marcy Wheeler of Firedoglake, The Chairman of the Senate Committee on Banking, Housing and Urban Affairs, Chris Dodd notes that information about who the bank recipients of Fed loans is "concerning", and that he would make such a request of the Federal Reserve. "I'll ask" is his summation of the questioning about why nobody besides the Fed is allowed to know where taxpayer capital goes to.
Dear bankers of The Clearinghouse Association: it may be time to send in a few more ultimatums.
"[Bernanke] has acted to provide needed liquidity to the economy and has demonstrated that he is fully ready to reverse course when economic conditions dictate. President Obama’s decision to reappoint him now is one more example of his providing leadership the country, and the world, needs as well as addressing the economic situation he inherited. By nominating Chairman Bernanke he is giving an example of the right kind of bipartisanship." - Barney Frank
Our activist friends over at Judicial Watch are just getting started. Recently, they filed a lawsuit against the US Treasury to "obtain records related to evaluation procedures used by the government to determine which financial institutions received funds from TARP. The focus of the inquiry is a potentially iniquitous $12 million cash injection provided to Boston-based OneUnited Bank, at the urging of Barney Frank.
The Committee on Agriculture set to nuke CDS trading, compliments of GE reincarnator Barney Frank
Barney Frank puts on his indignation hat on after realizing that the President has decided he doesn't need congressional approval on funding international financial institutions including the IMF and the World Bank. Here is the ensuing response when Barney realizes that for all his posturing, he is a third (and quite overinflated at that) wheel: "During the previous administration, all of us were critical of the President’s assertion that he could pick and choose which aspects of congressional statutes he was required to enforce. We were therefore chagrined to see you appear to express a similar attitude." Most odd is why the President wants unopposed decision making with regard to these organizations: is Larry Summers smelling a massive, upcoming global bail out that the American people are not allowed to be heard on?
Other things, maybe, but not words. Barney Frank tells CNBC to sit on it, after Mark Haines, who by his own admission "can not remember what happened yesterday," calls him out for his repeated auditioning for the role of Populist Compensation Queen, er, Czar.
Fast Forward to 5:50 in the clip below: Hell hath no fury like a... Barney Frank... scorned.
Everyone's favorite populist Robin Hood (in tights) for the common (Wall Street) man, chimes in on Geithner's latest initiative to allow much more governmental (SEC) intervention in pay determination. Also amusing is how Frank throws Geithner under the bus. There seems to be a pretty concerted political push against TTT now: the Summers camp must not be happy. Regardless, Frank is boldly spearheading an initiative for full socialization of exec comp - 5 year plenary sessions to be introduced to discuss the effectiveness of these shortly.
Let's recall what the magical bonus number was that caused Barney Frank to almost get a lynch mob armed and ready to march on Wall Street: $165 million in retention bonuses.
In yet another piece of revisionist brilliance, the pillar of intellectual fortitude formerly known as Barney Frank has passed legislation that will.... lower credit card interest rates.
Yes, ladies and gentlemen, this horrific deja vu is truly a massive glitch in the administration's matrix. Let's recap:
1) ZIRP (that's Zero Interest Rate Policy for you lucky souls who do not know this acronym)... yes, not even Greenspan sunk so low
2) Promotion of rampant TALFage, aka securitization