Is The President's Proposal To Ban Trading Actually What It Appears? We Don't Yet Know.
Well, first of all, we know that this is a politically-motivated move. Were the President's announcement genuine, he would have proposed these legislative changes long ago. But seeing Dummycrats dismantled at the polls by the American people in November and again earlier this week is forcing a political reality upon the President. That is, even though he is personally popular, his policies are wildly unpopular.
If his remarks today are indeed followed through with, and not rhetoric which allows bank holding companies to do whatever they want while the banks themselves supposedly are separated, no federally chartered banks will be allowed to trade for personal profit. Something we have railed against for the life of this blog. I remain dubious. Let's let the facts roll out over coming months.
I want you to remember something. Goldman Sachs is down 13 points today. We have uniquely written numerous times that Goldman could very well not survive. That their business model is unsustainable. Were the government to restore prior regulation and/or enforce existing regulation across a wide swath of the economy, Goldman Sachs would either need to tranform itself or fail. Karma is indeed a bitch.
Update 1:25PM. The White House has released a remark that the President's announcement is not a return to Glass Steagall. What this likely means is that the President's speech this morning was nothing more than rhetoric. That Wall Street holding companies will still be able to do whatever they want but that the actual bank itself will not be allowed to trade. Well, that's pretty much what we have today. If indeed this is true, the President has just dug himself an even bigger hole because as the details leak out, he will lose even more credibility with voters.
If his remarks today are indeed followed through with, and not rhetoric which allows bank holding companies to do whatever they want while the banks themselves supposedly are separated, no federally chartered banks will be allowed to trade for personal profit. Something we have railed against for the life of this blog. I remain dubious. Let's let the facts roll out over coming months.
I want you to remember something. Goldman Sachs is down 13 points today. We have uniquely written numerous times that Goldman could very well not survive. That their business model is unsustainable. Were the government to restore prior regulation and/or enforce existing regulation across a wide swath of the economy, Goldman Sachs would either need to tranform itself or fail. Karma is indeed a bitch.
Update 1:25PM. The White House has released a remark that the President's announcement is not a return to Glass Steagall. What this likely means is that the President's speech this morning was nothing more than rhetoric. That Wall Street holding companies will still be able to do whatever they want but that the actual bank itself will not be allowed to trade. Well, that's pretty much what we have today. If indeed this is true, the President has just dug himself an even bigger hole because as the details leak out, he will lose even more credibility with voters.
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