New Financial Regulation: Fraud You Can Believe In

[Post Summary]

I have eaten my honeycomb with my honey;
—Song of Solomon

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Over in the land of make believe where closing the door after the horses have left the barn masks for change you can believe in, we find a continuum of bad policy looking to remain unbroken by financial regulation the NY Times says is on the Obama administration's agenda.

Not one word about reinstatement of the uptick rule. So, those saving for retirement can look forward to managing their affairs in an environment still highly susceptible to manipulation.

Nothing mentioned, either, about how proposed regulatory changes address the fundamental insolvency of the banking system ... let alone the fundamental incapacity of the global economy to generate such wealth as raises ability to honor all presently existing financial claims in whole.

In other words, what's being proposed is a joke.

Oh, there's likely to be some honeymoon-like reaction possibly lasting a few months, because the regulatory changes being put forward come directly from Wall Street and its City of London backers.

There's nothing of meaningful value being offered the citizen investor. Rather, financial regulation proposed by the new Obama administration but further empowers the very sharks whose unimpeded feeding frenzy up to the present day has brought the global financial system (and, therefore, the physical economy it supports) to its most precarious state — vulnerable and imbalanced.

Careful selection of prey to satisfy a voracious appetite for cheap capital is what these regulatory proposals enable.

And the U.S. Treasury — the attack on its solvency — remains very much in the cross hairs...

—Tom Chechatka