ISSUE NOT REPORTED IN MASS MEDIA- $9BILL. PORK TO REPEAL PART OF FRANK- DODD REGULATING BIG BANKS
NINE BILLION DOLLARS IN PORK BUYS VOTES TO GET HOUSE PASSAGE OF BILL GUTTING DODD FRANK.
The Washington Post, moderate-conservative U.S. News World Report, Mother Jones and other progressive magazines do a decent job of reporting Wall Street's efforts to destroy Dodd-Frank. But on line research seems to indicate that they do not report the "pork"and "logrolling" aspect of what is now a huge issue.
First let us examine part of what Dodd Frank regulates. What is important are derivatives and one kind of them, credit default swaps.
Credit Default Swaps (CDS), for which the inherent risk is considered high, the higher, notional value, remains relevant. It was this type of derivative that investment magnate Warren Buffet referred to in his famous 2002 speech in which warned against “weapons of financial mass destruction.” CDS notional value in early 2012 amounted to $25.5 trillion,[8] down from $55 trillion in 2008.[9] From Wikilinks.
Credit Default Swaps and other derivatives caused the crash of the
stock market and the great recession. Morgan Chase alone lost
6 Billion dollars in derivatives in London, particularly because of
CDS'S. Wall Street caused both the crash and the Great
Recession.
Wall Street, which wants to destroy Dodd Frank last week got
the House Of Representatives to pass a bill stopping the
regulation of derivatives. (Obviously Wall Street's unlimited
resources were put into play.)
Why should Wall Street attack regulation of derivatives first?
It's because the biggest profits and bonuses for the Street are
generated by them.
Now to the logrolling aspect of the repeal of derivative regulation
in Dodd Frank. Logrolling occurs when a congressperson agrees
to a bill that he/she is not particularly interested in and/ or, they
are not interested in but are corrupt. In exchange for a "goodie,"
also known as "pork" a congressperson will sell their vote in
exchange for some port for their congressional district. The
goodie could be for a post office, construction that would
employ workers, etc.
The pork in the bill will cost taxpayers 9 Billion Dollars! It is
astonishing that Republicans, who brag about their refusal to
vote for bills that involve excess spending have been
engaged in a process that costs so much if the Senate passes
the same bill.
The logrolling aspect and the pork involved in the passage of
repeal of regulations of derivatives in Dodd-frank, not covered
by the mainstream media and, above all, by the progressive
press is depressing. The public needs to know the facts of the
case.
If the repeal of the derivative provision of Dodd-Frank is repealed
we are being set up for another crash and taxpayer bailout of
Wall Street.
Comments by Bill Hessell at end of post are excellent.[link:http://www.fortheleft.blogspot.com|
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