Best of the Week
Most Popular
1.Is the Stocks Bull Market Over? Dow Trend Forecast into End January 2015 - Nadeem_Walayat
2.Gold and Silver Stocks Apocalypse Now, Bear Market Review - Rambus_Chartology
3.NHS Baldrick Plan to Spread Ebola Across UK - Sheffield, Newcastle, Liverpool, London Hospitals - Nadeem_Walayat
4.Ebola Terror Threat Suicide Bio-Weapons Threatens Multiple 9/11's, Global Plague - Nadeem_Walayat
5.Second-Richest Man Says Mortgages Now a "No Brainer" - Dr. Steve Sjuggerud
6.Gold And Silver Still No End In Sight - Michael_Noonan
7.NHS Baldrick Plan to Spread Ebola Across UK - Sheffield, Newcastle, Liverpool, London Hospitals - Nadeem_Walayat
8.The Gold Bug is Set to Bite Back - EWI
9.How Alibaba Could Capitalize on the EBay-PayPal Split - Frank_Holmes
10.The Consequences of the Economic Peace - John_Mauldin
Last 5 days
Gold And Silver Price - Respect The Trend But Prepare For A Reversal - 25th Oct 14
Ebola Has Nothing To Do With The Stock Market - 25th Oct 14
The Gallery of Crowd Behavior: Goodbye Stock Market All Time Highs - 25th Oct 14
Japanese Style Deflation Coming? Where? Fed Falling Behind the Curve? Which Way? - 25th Oct 14
Gold Price Rebounds but Gold Miners Struggle - 25th Oct 14
Stock Market Buy the Dip or Sell the Rally - 25th Oct 14
Get Ready for “Stupid Cheap” Stock Prices - 25th Oct 14
The Trend Every Nation on Earth Is Pouring Money Into - 25th Oct 14 - Keith Fitz-Gerald
Bitcoin Price Decline Stopped, Possibly Temporarily - 25th Oct 14
Bullish Silver Stealth Buying - 24th Oct 14
Blood in the Streets to Create the Gold Stocks Investor Opportunity of the Decade - 24th Oct 14
Swiss ‘Yes’ and ‘No’ Gold Initiative Campaigns Compete at Launches in Bern - 24th Oct 14
War And The Law Of Unintended Consequences - 24th Oct 14
Tesco Meltdown Debt Default Risk Could Trigger a Financial Crisis in Early 2015 - 24th Oct 14
Saudi Move to Cut Oil Prices Is Now Russia's Biggest Economic Threat - 24th Oct 14
US Stock Market Top Is Now In Sight - 24th Oct 14
New Profit Points in the Shifting Balance of Power, Welcome to Saudi America - 24th Oct 14
QE Failure & Folly Of Paper Mache, Treasury Bond Integrated Lifeline Patches - 24th Oct 14
U.S. Economy Faltering Momentum, Debt and Asset Bubbles - 23rd Oct 14
Annuities - Afraid Your Money Will Vanish before You Do? - 23rd Oct 14
What Debt Deleveraging? - 23rd Oct 14
How to Profit from Massive Spin-Offs with Just One Play - 23rd Oct 14
Evaluating Ebola as a Biological Weapon - 23rd Oct 14
Euro, USD, Gold and Stocks According to Chartology - 23rd Oct 14
Why You Should Always Be Invested in the Stock Market (Even Now) - 23rd Oct 14
Five U.S. Housing Market Warning Signs Point to Real Estate Market Downturn - 23rd Oct 14
The Better Short: Gold or Silver? - 23rd Oct 14
Focus on Graphite Companies with Green Energy and Technology Strategies - 22nd Oct 14
Crude Oil Price Hitting Bottom - 22nd Oct 14
Evidence of Another Even More Sweeping U.S. Housing Market Bust Already Starting to Appear - 22nd Oct 14
Gold Or Crushing Paper Debt Stocks Crash? - 22nd Oct 14
India Gold Demand Surges 450% and Bank of Russia Demand At 15 Year High - 22nd Oct 14
Bitcoin Stock Exchange Could Be "More Valuable than Alibaba" - 22nd Oct 14
Currency War - How to Profit from a Stronger U.S. Dollar - 22nd Oct 14
Banks Hold Treasuries and Make Loans- 22nd Oct 14
Gold and Silver Timing is Everything - 22nd Oct 14
Don't Get Ruined by These 10 Popular Investment Myths (Part VII) - 22nd Oct 14
Follow the Baby Boom to Biotech Stock Profits - 22nd Oct 14
Copper, Nickel and Zinc Won't Be Cheap for Long - 22nd Oct 14
How Will We Know That the Gold & Silver Price Bottom Is In? - 21st Oct 14
Is Gold as Dead as Florida Hurricanes? - 21st Oct 14
First Swiss Gold Poll Shows Pro-Gold Side In Lead At 45% - 21st Oct 14
The Similarities Between Germany and China - 21st Oct 14
The REAL Reason Why the Stock Market Turned Down - 21st Oct 14
Petrobras is a 'Scheme, Not a Stock' - 21st Oct 14
Stocks Bear Market Indicator Is Off the Mark - 20th Oct 14
Stock Market Ideal Turning Point is at Hand - 20th Oct 14
Investors Quit Complaining, The Environment is Perfect Right Now - 20th Oct 14
Ebola Armageddon Could Trigger a Rebirth in Gold and Silver Prices - 20th Oct 14
Gold vs Euro Risk Due To Possible Return of Italian Lira - Drachmas, Escudos, Pesetas and Punts? - 20th Oct 14
Stocks Rebounded Following Recent Sell-Off, But Will It Last? - 20th Oct 14
U.S. Responsible for West Africa Ebola Outbreak Says Liberian Scientist - 20th Oct 14
Stock Market Intermediate B Wave has Started - 20th Oct 14
Gold Stocks Analysis – FNV, CG, NCM, SBM - 19th Oct 14
Stock Market Primary IV Wave Counter Trend Rally - 19th Oct 14
Gold And Silver - Financial World: House Of Cards Built On Sand - 18th Oct 14
Anatomy of a Stock Market Sell-Off - 18th Oct 14
Why OPEC Has Declared an Oil War on Russia - 18th Oct 14
Gold and Silver Extreme Shorting Peaks - 18th Oct 14
Bitcoin Price Fall to $350? - 18th Oct 14
Tesco Supermarket Crisis Worse To Come as Customers Vanish! - 18th Oct 14

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

Stocks Epic Bear Market

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

© 2005-2014 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

Free Report - Financial Markets 2014