derivatives

One thing to be said for the women now heading the Federal Reserve and the IMF: compared to some of their predecessors, they are refreshingly honest. The Wall Street Journal reported on July 2nd:

Snake Oil: How Fracking’s False Promise of Plenty Imperils Our Future by Richard Heinberg (Post Carbon Institute, 2013) is about the economics of fracking. Also known as hydraulic fracturing, fracking refers to using pressurized water and chemicals to release oil or natural gas trapped in underground rock formations. Heinberg’s new book describes the behind-the-scenes role of Goldman Sachs and other investment banks in driving the present fracking boom.

Fred Upton's Monkey CourtOn Wednesday, the House voted 292-122 to gut a significant portion of the Dodd-Frank Consumer Protection law. Irresponsible banksters addicted to risky gambling will once again be able to take those risks knowing that if they get into trouble, the taxpayers will be forced to pick up the tab.

If you're a regular DWT reader, you know better. Of course, virtually every Republican in Congress is a full on shill for Wall Street. It's part of their DNA. But it's part of the DNA of a significant chunk of the Democratic congressional caucus as well. When it comes to catering to Wall Street there is virtually no difference whatsoever between Republicans and New Dems. Yesterday, 70 Wall Street-oriented Democrats voted with all but 3 Republicans to pass H.R. 992, an amendment to gut a piece of the Dodd-Frank financial reform consumer protection act.

Just 12 banks control almost 70% of total bank assets. This week at a Banking Committee hearing, Elizabeth Warren grilled Treasury Secretary Jack Lew about capping the size of the Too Big To Fail banks. He danced around her questions and sounds as full of crap as any GOP bank shill who's looking forward to his future on Wall Street. Notice in Lew's weasely, misleading answers he says "we" shouldn't do anything because we're in the middle of implementing Dodd-Frank.