Parisian Family Office, CEO. Began Wall Street, 1982. Founded investment firm, CHIPPEWA PARTNERS, Native American Advisors. Active Trader. White Earth Chippewa Tribal member. Was NYSE/FINRA arb. Conservative, raised on Great Plains reservations. Pureblood, clot-shot free. In a world elevated on a dopamine binge, this is his take! Written from MT Ghost Ranch on the Yellowstone River, TN farm Pamelot or San Jose del Cabo, Mexico, CASA TULE'. Always been, will always be, an optimist.
Sunday, July 28, 2013
The Great Deformation by David Stockman
He said that one of his policy recommendations at the end of his book is what he calls "super Glass-Steagall." By which he said he means that (1) banks over a certain size simply have to be broken up; and (2) if any bank wants to receive deposit insurance or access to the discount window at the Fed, it can only be involved in lending to households and businesses and taking in deposits. No trading. No underwriting. No asset management of any kind. No prop trading. No London Whales. None of the rest of the stuff. "We need to stand firm and do that instead of the stupid Dodd-Frank thing," he added.
Let's have some real banking reform, or the next crisis is going to be worse than the crisis which scared us the last time. [buried in the thousands of pages of Dodd-Frank is the mechanism for "bail-in" (Cyprus model) that allows TBTF banks to confiscate depository funds, making the ripped off depositor a "shareholder" in the essentially worthless bank in return. Chris Dodd, and Barney Frank then quit politics--job done for the TBTF Banks. Glass Steagall cuts the money supply off to the TBTF Banks.