I hear the Harpies Screeching daily about how the government needs to get out of their lives and let ---what? -- Big Business rule?
What example can they give that supports a reason for not regulating our economy & businesses? None!
It’s worth remembering that between the 1930s and the 1980s, there weren’t any really big financial bailouts, because strong regulation kept most banks out of trouble. It was only with Reagan-era deregulation that big bank disasters re-emerged. In fact, relative to the size of the economy, the taxpayer costs of the savings and loan disaster, which unfolded in the Reagan years, were much higher than anything likely to happen under President Obama.
To understand what’s really at stake right now, watch the looming fight over derivatives, the complex financial instruments Warren Buffett famously described as “financial weapons of mass destruction.” The Obama administration wants tighter regulation of derivatives, while Republicans are opposed. And that tells you everything you need to know.
About Me
- Zipidee
- About me -- Could that speak to attributes of my character or to objects arranged around me at this time and place. To discuss attributes there must first be attributes. As a rather suspect observer they (the attributes) would be questionable to say the least should I choose to list any. If on the other hand we are speaking of objects that are within my grasp I feel as though their description would be an invasion of my privacy and by the way one that I would be responsible for and by golly there's one attribute I will claim and that's having sense enough not to incriminate myself! So! As a card carrying commie pinko of the late 60's you'll not be greatly suprised with some of my opinions. This will hopefully be a family place.
3 comments:
I always hear derivatives, but never really understand what they are. Is there a simplified explanation somewhere?
A derivative is a financial instrument (or more simply, an agreement between two people/twoparties) that has a value determined by the price of something else. Derivatives can be thought of as bets on the price of something. Suppose you bet with your friend on the price of a bushel of corn. If the price in one year is less than $3 your friend pays you $1. If the price is more than $3 you pay your friend $1. Thus, the underlying in the agreement is the price of corn and the value of the agreement to you depends on that underlying.
that is my 'learn something new everyday' item for today, thanks!
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