Scott Brown – Nosing the Obama Base

The events of the day (1/21/10) illustrate a systemic failure and a mistrust of our entire financial system.  It also indicates the extent to which the Obama Administration will go in their attempt at regaining the momentum lost by the success of Massachusetts election of Scott Brown. Obama is simply “Scott Brown Nosing his Base.” Politics,  pure and simple.  Still,… 

When one segment (Banking / Financial Services) can wield such influence, both on the Markets in general and as well on Government Interference Mechanisms, the affect illustrates the inherent bias in the functioning’s of the process.  Few pay attention to the fact that the alleged system failures of last year were not failures of the market, they responded precisely as they should, but evidence of the reckless abuses by Banking and Financial Institutions manipulations whose sole purpose is to “churn” business and/or transactions purely for the purpose of extracting income from the process.  Further,  it should also be noted that what triggered the staggering losses where not the mortgage instruments themselves, but the derivatives that were created simply to “churn” the process, and by the way,  it’s not over.  We’ve yet to see the consequences of the Commercial Financial Markets which will make last year look like a Tupperware party! 

More to the point, when Obama speaks of proposed regulations this (only) serves to further stirs investor suspicions that Obama and his Administration, truly, have absolutely no clue as to what they are doing particularly if their intention is to reconstruct a functional system and if it is not, then it further illustrates both the dysfunctional nature of the system and its’ inherent and systemic bias which, by the way, is not only just the result of the current Administration’s actions.  If, as it has proven to be the case, that the losses were not that of the market or that of the underlying instrument (mortgages) then why is it the American Public who is burdened with the enduring losses?  I’m perplexed why, to a person, not the media outlet or Politician dare approach a true query and propose an authentic and thoughtful regiment.   The answer lies in the source of the problem and not in creating yet another disaster.  If the Government continues to refuse to address the systemic abuses then there will only be further exhibitions of excess.  

The Banking System needs to be confined to the business of Banking particularly if the losses they are going to sustain affect and effect the economic future of the American Public.   The claimed notion that Banks need to be able to be “market diverse” in order to accommodate American Business competitiveness in the so called global market should  beg an obvious question which is this:  What good is American Business global competitiveness if there is no Economic Benefit, measured in true Wealth Creation,  producing a economically productive outcome for the American (Domestic) Economy or the Economic Well Being of the American People?   The Answer:  There is none! 

The moment “The Financial Modernization Act of 1999” , not to ignore others, was passed the certainty of ultimate disaster was triggered.  Curious is the case that when the most immediate remedy would be its repeal, those that benefit most from abuses entitled by privileged license are those whose opposition is most vocal. 

The markets, as they are, are structured for one purpose and one purpose only, the commission of unbridled predatory trading offering nothing (derivatives) of value in exchange for specific notional commodity.  That’s all! We ignore that there is only ever one “initial offering” of a valid security, every transaction that follows is nothing more than “trading” and thus, no value or commodity is created.  Is there truly any real surprise that the swings are so violent, predictable and systemically culpable?  Answer:  ABSOLUTELY NOT!  

There is only one solution,  GUT IT, CONFINE IT and STRUCTURE ABSOLUTE PUNITIVE CONSEQUENCES for VIOLATING IT!  Otherwise, there will be only more of the same! Just one Man’s Opinion!  

Curtis C. Greco, Founder

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