Best of the Week
Most Popular
1. The Trump Stock Market Trap May Be Triggered - Barry_M_Ferguson
2.Why are Central Banks Buying Gold and Dumping Dollars? - Richard_Mills
3.US China War - Thucydides Trap and gold - Richard_Mills
4.Gold Price Trend Forcast to End September 2019 - Nadeem_Walayat
5.Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - Anika_Walayat
6.US Dollar Breakdown Begins, Gold Price to Bolt Higher - Jim_Willie_CB
7.INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - Nadeem_Walayat
8.Will Google AI Kill Us? Man vs Machine Intelligence - N_Walayat
9.US Prepares for Currency War with China - Richard_Mills
10.Gold Price Epochal Breakout Will Not Be Negated by a Correction - Clive Maund
Last 7 days
The State of the Financial Union - 18th Aug 19
The Nuts and Bolts: Yield Inversion Says Recession is Coming But it May take 24 months - 18th Aug 19
Markets August 19 Turn Date is Tomorrow – Are You Ready? - 18th Aug 19
JOHNSON AND JOHNSON - JNJ for Life Extension Pharma Stocks Investing - 17th Aug 19
Negative Bond Market Yields Tell A Story Of Shifting Economic Stock Market Leadership - 17th Aug 19
Is Stock Market About to Crash? Three Charts That Suggest It’s Possible - 17th Aug 19
It’s Time For Colombia To Dump The Peso - 17th Aug 19
Gold & Silver Stand Strong amid Stock Volatility & Falling Rates - 16th Aug 19
Gold Mining Stocks Q2’19 Fundamentals - 16th Aug 19
Silver, Transports, and Dow Jones Index At Targets – What Direct Next? - 16th Aug 19
When the US Bond Market Bubble Blows Up! - 16th Aug 19
Dark days are closing in on Apple - 16th Aug 19
Precious Metals Gone Wild! Reaching Initial Targets – Now What’s Next - 16th Aug 19
US Government Is Beholden To The Fed; And Vice-Versa - 15th Aug 19
GBP vs USD Forex Pair Swings Into Focus Amid Brexit Chaos - 15th Aug 19
US Negative Interest Rates Go Mainstream - With Some Glaring Omissions - 15th Aug 19
GOLD BULL RUN TREND ANALYSIS - 15th Aug 19
US Stock Market Could Fall 12% to 25% - 15th Aug 19
A Level Exam Results School Live Reaction Shock 2019! - 15th Aug 19
It's Time to Get Serious about Silver - 15th Aug 19
The EagleFX Beginners Guide – Financial Markets - 15th Aug 19
Central Banks Move To Keep The Global Markets Party Rolling – Part III - 14th Aug 19
You Have to Buy Bonds Even When Interest Rates Are Low - 14th Aug 19
Gold Near Term Risk is Increasing - 14th Aug 19
Installment Loans vs Personal Bank Loans - 14th Aug 19
ROCHE - RHHBY Life Extension Pharma Stocks Investing - 14th Aug 19
Gold Bulls Must Love the Hong Kong Protests - 14th Aug 19
Gold, Markets and Invasive Species - 14th Aug 19
Cannabis Stocks With Millennial Appeal - 14th Aug 19
August 19 (Crazy Ivan) Stock Market Event Only A Few Days Away - 13th Aug 19
This is the real move in gold and silver… it’s going to be multiyear - 13th Aug 19
Global Central Banks Kick Can Down The Road Again - 13th Aug 19
US Dollar Finally the Achillles Heel - 13th Aug 19
Financial Success Formula Failure - 13th Aug 19
How to Test Your Car Alternator with a Multimeter - 13th Aug 19
London Under Attack! Victoria Embankment Gardens Statues and Monuments - 13th Aug 19
More Stock Market Weakness Ahead - 12th Aug 19
Global Central Banks Move To Keep The Party Rolling Onward - 12th Aug 19
All Eyes On Copper - 12th Aug 19
History of Yield Curve Inversions and Gold - 12th Aug 19
Precious Metals Soar on Falling Yields, Currency Turmoil - 12th Aug 19
Why GraphQL? The Benefits Explained - 12th Aug 19
Is the Stock Market Making a V-shaped Recovery? - 11th Aug 19
Precious Metals and Stocks VIX Are About To Pull A “Crazy Ivan” - 11th Aug 19
Social Media Civil War - 11th Aug 19
Gold and the Bond Yield Continuum - 11th Aug 19
Traders: Which Markets Should You Trade? - 11th Aug 19
US Corporate Debt Is at Risk of a Flash Crash - 10th Aug 19
EURODOLLAR futures above 2016 highs: FED to cut over 100 bps quickly - 10th Aug 19
Market’s flight-to-safety: Should You Buy Stocks Now? - 10th Aug 19
The Cold, Hard Math Tells Netflix Stock Could Crash 70% - 10th Aug 19
Our Custom Index Charts Suggest Stock Markets Are In For A Wild Ride - 9th Aug 19
Bitcoin Price Triggers Ahead - 9th Aug 19
Walmart Is Coming for Amazon - 9th Aug 19

Market Oracle FREE Newsletter

Top AI Stocks Investing to Profit from the Machine Intelligence Mega-trend

The Hilarious Comedy Behind John Boehner's Fiscal Cliff "Plan B"

Politics / US Politics Dec 26, 2012 - 11:13 AM GMT

By: Money_Morning

Politics

Shah Gilani writes: I am laughing right now, really.

I am laughing because of what happened last week. I am laughing that House Speaker John Boehner's "Plan B" for the Fiscal Cliff wasn't even voted on.


Why not? I can't imagine - it had all the right stuff.

According to Mr. Bonehead's website, "The bill focuses on stopping waste, fraud, and abuse in federal programs, eliminating government slush funds (including an ObamaCare slush fund), and reducing waste and duplication in government bureaucracies."

And that was just the trash talk about cutting wasteful spending in the bill. He also wanted a tax cut for Americans making under a million dollars a year. I'm for that!

So what's making me laugh, when on the surface the bill seems to make some sense?

It's what you can't see (because most of it is hidden, or if it's there it's buried) that's funny. In fact, two things in the bill are so funny that they almost brought me to tears.

Let's go have a laugh together.

First, because House Republicans want to cut wasteful spending, they offered to cut funding for the newly minted Consumer Financial Protection Bureau. Brilliant!

We don't need more oversight of money-grubbing schemers or consumer protection from banks and money...oh, I said that already.

The House bill wanted to tether the CFPB's budget to Congressional appropriation, on account of the fact that they want to slice it and dice it, and, yes, kill it. That's an elegant way to bludgeon it to death.

How is the CFPB funded now? Oh, it gets an automatic percentage of the Federal Reserve Board's operating expense budget. Where does that come from? Don't even get me started on that one. Although, considering the kind of stuff that gets ourreaders going...Okay, you got it. I will cover that for you in detail in the near future - and you will love it!

Back to what's so funny about Plan B.

Second, because House Republicans want to cut wasteful spending, they offered to eliminate the Office of Financial Research. Why that obscure little office? Because that's where the Dodd-Frank Wall Street Reform & Consumer Protection Act provided for the breakup of too-big-to-fail banks that actually fail (is that an oxymoron, or just moronic?) by means of an Orderly Liquidation Authority.

House Republicans, with the filthy hands of their puppeteer masters - the morons from the TBTF banks - showing below the top of the curtain above where they rattle and hum, are saying there's savings in cutting them thar stupid rules.

Brilliant!

To understand why I'm laughing, you have to get my humor. And to get that, all you have to understand is that there is nothing to cut

See, back in April when the Republican-led House Financial Services Committee tried to ram this through in the Sequester Replacement Reconciliation Act of 2012 - that went nowhere - they calculated there would be $22 billion in savings if you eliminated the Orderly Liquidation Authority.

But there is no $22 billion.

There is no cash-flow from any part of that Authority to cut. There may be some tiny savings from eliminating the tiny budget (it's not established yet) of the Office of Financial Research, but there ain't no $22 billion!

What there is, if that's cut out, is a toll-free highway for the TBTF banks to keep growing and to never, ever, ever, be challenged or threatened with being dismantled.

Which is okay with me. Why? Just because I love to laugh.

Why am I laughing? Because the Office of the Comptroller of the Currency (OCC) just had a closed-door "convention" to talk with bank directors about how safe the banks really are.

Nineteen of the country's biggest banks were looked at, and guess what? They all failed.

That's why I'm laughing - they all failed.

Do you get it? That's funny. The too-big-to-fail banks all just failed an OCC stress test. Come on, that's funny!

Again, it's what's behind the closed doors that's funny.

The OCC now thinks it has to put far more importance on testing banks' compliance policies, on operational risks, and on strategic and reputation risks. They now think that's more important than testing bank's credit and interest rate exposures, asset price exposure, trading activity, and liquidity risks. Brilliant!

According to Mike Brosnan, an OCC veteran who heads large bank supervision, "For the first time in my life, we actually say this basket of risks is more important, and more of a priority for the system to deal with, than asset quality, liquidity, interest rate risk and trading activities." He told The American Banker, "It makes us uncomfortable as examiners, because it's not how we were trained."

Now, that's funny! These guys are now going to concentrate on stuff they're not even trained in? You just can't make this stuff up.

"Plan B". That was funny to start with. It's even funnier that it didn't get to see the light of a "No" vote.

But what's really funny is what's going on behind closed doors for the soul of our economy and the safety of our savings (what savings?) and our pensions (what pensions?) and our future (what future?).

Really, I am laughing because it's better than crying.

I hope you are, too

Source :http://moneymorning.com/2012/12/26/the-hilarious-comedy-behind-john-boehners-plan-b/

Money Morning/The Money Map Report

©2012 Monument Street Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Monument Street Publishing. 105 West Monument Street, Baltimore MD 21201, Email: customerservice@moneymorning.com

Disclaimer: Nothing published by Money Morning should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investent advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Money Morning should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Money Morning Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules