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Archive for the ‘Legislation’ Category

One of the best daily show episodes i saw…
Here it is and it is a must watch!!!!!!
Here is the best quote of this entire show:
“Isn’t the dow jones industrial average, just a short twitch numerical representation, of a bunch of guesses, about other people’s assumptions, about the financial well being of, an arbitrarily chosen group [...]

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Its called “Inside the meltdown” and full of left-liberal pundits, but it is a pretty good description of what went on during those crucial months last year.
Here it is…

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House passes the granduosly named American recovery and reinvestment plan, and, it is irrelevant at this point. For this plan is not far sighted enough nor does it change the game in any way. But don’t blame the president for this, for he was just working with in the boundaries of consitution. Fact is this [...]

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So GS and MS want to become bank holding companies now.
This needs to be thought through properly before any comment is made.

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Dow is currently about a 150 points down. Over the next couple of days there may again be volatile swings in stock market. Such volatility may be used to pressure congress to pass paulson’s plan. Volatility in the stock market is natural in such troubled times and should not cause a panic among the congressional [...]

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The bailout plan is not yet passed by the congress and oil is already above $104.
Why?????
Here’s the logic, US government is giving a bailout to the wall street, but FED has to create those $700 billions. Which means, huge amount of deficit in US. That implies US currency dollar will loose its purchasing power and [...]

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Do read this post on bailout plan.
Congratulations on this great first post.

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So federal government will buy all these unsellable mortgages from financial companies. And then will ask these very same financial companies to manage these mortgages for it.
I wonder if they could keep a straight face when they were thinking that up.
What next? No-bid contracts for managing these mortgages?

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What is with the time horizon of the bailout? Check this link.

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Apparently, democrats want to limit executive compensation as a part of the bailout plan according to this report in the new york times. Apart from being symbolic, it is silly, divisive and very difficult to arrive at. Unless it is being used as a negotiating tactic, this proposal has no place in this law.
The really [...]

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As surreal as it may sound, paulson’s corporate welfare plan in the guise of an economic bailout plan can not exclude foreign corporates. And that’s not because of the reason that paulson gave on the weekend talk shows (You know that one about “even a foreign corporate with significant american operation”).
It’s becuase most of these [...]

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I know that’s not supposed to be the reaction to this bail out plan. But i do and here is why.
The bailout plan asks the amount of money, which hopefully, will allow all the financial institutions to take off unsellable mortgages off the books. All the following points arise.
1. The $700 billion dollars is not [...]

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Check out this article by Lawrence Summers on financial times. Reading the article it is evident there was a lot of thought that went into it. However, this was a very high level thinking. Every single point mentioned there in seem reasonable but putting these into practice takes a lot more detailing. For instance, the [...]

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This week on “A” Daily show, as they call it these days, there was great satire. If this is what Jon Stewart can do with out the writers, think what could have been with them!
Here is one spot called Very Mad Money on the recent stock market sell off and tanking economy.
[thedailyshow=http://www.thedailyshow.com/video/index.jhtml?videoId=148349&title=very-mad-money]
That’s not a [...]

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The Education of Ben Bernanke – New York Times
Here’s a brief but pretty good outline on the evolution of Federal Reserve.  Ron Paul fans should read this outline to understand their own arguments better!!!

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This would be amusing if it were not so loathsome.
Kyoto protocol was not ratified for eons literally, which could have hopefully made a difference to our environment. Bali summit dragged on and on, discussing what to discuss in the next round of discussions. Now, Federal administration refuses to allow California to enact its own environmental [...]

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This article was published by the newyork times today .
A classic case of the law of unintended consequences playing its part. World is complex and all most all modern systems are entangled in a web of diverse parts pulling in different directions. The underlying assumption that is expected to make the system work with out [...]

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