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JPMorgan Losses Do Not Make the Case for Regulation | Mark A. Calabria | Cato Institute: Commentary: "In September 2003, when warned of problems at Freddie Mac and Fannie Mae, then-House Financial Services Chair Barney Frank stated, "I want to roll the dice a little bit more in this situation." Well, Chairman Frank did indeed "roll the dice," and now the American taxpayer is almost $200 billion poorer.
JPMorgan rolled the dice, betting that the U.S. economy would improve — essentially a bet on Obama's economic agenda. That bet went south. JPMorgan lost $2 billion, one hundredth of the losses so far on Fannie Mae and Freddie Mac.
But the losses at JPMorgan were borne not by the American taxpayer, but by JPMorgan. The losses also appear to have been offset by gains so that in the last quarter JPMorgan still turned a profit."
"The losses at JPMorgan have also resulted in the quick dismissal of the responsible employees. Show me the list of regulators who lost their jobs, despite the massive regulatory failures that occurred before and during the crisis. In fact, some of the most incompetent, such as the previous president of the New York Federal Reserve Bank, actually got promotions."
"What the recent JPMorgan losses actually prove is that a major investment bank can take billions of losses, and the financial system continues to function even without an injection of taxpayer dollars."
"What we need is not a system free of errors, but one that is robust enough to withstand them. And the truth is that the more small errors we have, the fewer big errors we will have."
Friday, June 08, 2012
Killers of Banks and Jobs | Richard W. Rahn | Cato Institute: Commentary
Killers of Banks and Jobs | Richard W. Rahn | Cato Institute: Commentary: "JPMorgan Chase, revealed that the bank had made a $2 billion-plus trading mistake. The bank has more than $2 trillion in assets and made a profit of about $20 billion last year. So it lost one-tenth of 1 percent of its assets and an amount equal to about 10 percent of its income for last year."
"Sen. Carl Levin immediately issued a press release calling for more bank regulation."
"about 20 percent, or $100 billion, of Medicare spending is fraudulent. Other estimates of Medicare fraud, including those of the U.S. government, range between $20 billion and $100 billion."
Why is Levin worried about a $2 billion loss that only affects JPMorgan Chase shareholders when there is $100 billion in Medicare fraud?
"Sen. Carl Levin immediately issued a press release calling for more bank regulation."
"about 20 percent, or $100 billion, of Medicare spending is fraudulent. Other estimates of Medicare fraud, including those of the U.S. government, range between $20 billion and $100 billion."
Why is Levin worried about a $2 billion loss that only affects JPMorgan Chase shareholders when there is $100 billion in Medicare fraud?
Iran's nuclear program: 4 things you probably didn't know - President Mahmoud Ahmadinejad never said that Israel should be "wiped off the map." - CSMonitor.com
Iran's nuclear program: 4 things you probably didn't know - President Mahmoud Ahmadinejad never said that Israel should be "wiped off the map." - CSMonitor.com: "Ahmadinejad "never... uttered the words 'map,' 'wipe out,' or even 'Israel'" in his statement. Rather, he argued, the translation should have been that "this regime occupying Jerusalem must vanish from the page of time." (Both The Washington Post and The Atlantic came up with similarly variant translations.)
This is a key difference, Mr. Norouzi argued, because Ahmadinejad used the "vanish from the page of time" idiom elsewhere in his speech: when describing the governments of the Shah of Iran, the Soviet Union, and Saddam Hussein. While war and revolution were involved in the three regimes' collapse, none of them, Norouzi argued, were "wiped off the map." Rather, they underwent regime change. This suggests in turn, he said, that Ahmadinejad was calling for regime change in Israel, not nuclear genocide. Juan Cole, another critic of the speech's translation, compared Ahmadinejad's statement to Reagan-era calls for the end of the Soviet Union."
"on Aug. 9, 2005, [the country's supreme leader and foremost religious figure, Ayatollah Ali Khamenei] issued a fatwa against the production and use of nuclear weapons, it was not simply a sermon – it carried political weight."
"in 2000 that Iran ranked second only to the US in gasoline consumption. But despite Iran's huge oil production, it lacks the facilities to refine it into gasoline, forcing it to import a barrel of oil for every eight it exports. According to Majd, some Iranians blame their lack of refining infrastructure on Western sanctions."
"Both US and Israeli intelligence agree that Iran is not pursuing a nuclear weapons program."
This is a key difference, Mr. Norouzi argued, because Ahmadinejad used the "vanish from the page of time" idiom elsewhere in his speech: when describing the governments of the Shah of Iran, the Soviet Union, and Saddam Hussein. While war and revolution were involved in the three regimes' collapse, none of them, Norouzi argued, were "wiped off the map." Rather, they underwent regime change. This suggests in turn, he said, that Ahmadinejad was calling for regime change in Israel, not nuclear genocide. Juan Cole, another critic of the speech's translation, compared Ahmadinejad's statement to Reagan-era calls for the end of the Soviet Union."
"on Aug. 9, 2005, [the country's supreme leader and foremost religious figure, Ayatollah Ali Khamenei] issued a fatwa against the production and use of nuclear weapons, it was not simply a sermon – it carried political weight."
"in 2000 that Iran ranked second only to the US in gasoline consumption. But despite Iran's huge oil production, it lacks the facilities to refine it into gasoline, forcing it to import a barrel of oil for every eight it exports. According to Majd, some Iranians blame their lack of refining infrastructure on Western sanctions."
"Both US and Israeli intelligence agree that Iran is not pursuing a nuclear weapons program."
GOP measure protects lawmakers' office budgets | Fox News
GOP measure protects lawmakers' office budgets | Fox News: "Several GOP tea party freshmen had sought to cut office budgets by 11 percent, but House leaders shut down the effort"
Orlando man given George Zimmerman's old cellphone number bombarded with death threats | Fox News
Orlando man given George Zimmerman's old cellphone number bombarded with death threats | Fox News: "he got about 70 threatening calls between May 7, when he bought the phone, and May 16"
It is sad that people would do that!
It is sad that people would do that!
Thursday, June 07, 2012
Eduardo Saverin, Not the U.S. Government, Is Entitled to the Wealth He Earned | Doug Bandow | Cato Institute: Commentary
Eduardo Saverin, Not the U.S. Government, Is Entitled to the Wealth He Earned | Doug Bandow | Cato Institute: Commentary: "the U.S. is the only country which taxes worldwide compensation. Other nations limit their claim to a share of money earned within their borders. America’s corporate tax rate also is the world’s highest."
Romney: US not meeting commitment to fight poverty | Fox News
Romney: US not meeting commitment to fight poverty | Fox News: "Mitt Romney says the government has "a moral commitment" to help every American help themselves."
Does he want a "nanny state"?
Does he want a "nanny state"?
Dollar loses reserve status to yen & euro - NYPOST.com
Dollar loses reserve status to yen & euro - NYPOST.com: "The dollar's share of new cash in the central banks was down to 37 percent -- compared with two-thirds a decade ago.
Currently, dollars account for about 62 percent of the currency reserve at central banks -- the lowest on record, said the International Monetary Fund."
"They grumble that they've loaned the US record amounts to cover its mounting debt, but are getting paid back by a currency that's worth 10 percent less in the past three months alone. In a decade, it's down nearly one-third."
Currently, dollars account for about 62 percent of the currency reserve at central banks -- the lowest on record, said the International Monetary Fund."
"They grumble that they've loaned the US record amounts to cover its mounting debt, but are getting paid back by a currency that's worth 10 percent less in the past three months alone. In a decade, it's down nearly one-third."
Wednesday, June 06, 2012
In Mass., individual mandate sparks little outcry | Fox News
In Mass., individual mandate sparks little outcry | Fox News: "Massachusetts collected about $77 million in penalties from residents as a result the requirement from 2007-2009. While that may seem like a lot of money, the penalties have touched just a tiny fraction of the state's population of more than 6.5 million.
In 2007, about 67,000 people were required to pay a penalty. That declined to 53,000 in 2008 and 48,000 in 2009."
"In 2012, those making more than three times the poverty level — $32,676 for an individual — pay the highest penalty of $105 per month, or $1,260 per year."
"The intense focus on the federal mandate may be disproportionate to the number of people who could end up paying a penalty. "
Of course the rule of law and the government taking more rights doesn't affect the suggested focus. :-p
In 2007, about 67,000 people were required to pay a penalty. That declined to 53,000 in 2008 and 48,000 in 2009."
"In 2012, those making more than three times the poverty level — $32,676 for an individual — pay the highest penalty of $105 per month, or $1,260 per year."
"The intense focus on the federal mandate may be disproportionate to the number of people who could end up paying a penalty. "
Of course the rule of law and the government taking more rights doesn't affect the suggested focus. :-p
Tuesday, June 05, 2012
NM court upholds gay discrimination ruling | Fox News
NM court upholds gay discrimination ruling | Fox News: "The New Mexico Court of Appeals has upheld a ruling that a professional photographer who refused to take pictures of a gay couple's commitment ceremony violated state anti-discrimination laws."
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