Skip to main content

View Diary: Nelson, wife own as much as $6 million in Berkshire stock (105 comments)

Comment Preferences

  •  But ... he is right on finreg (1+ / 0-)
    Recommended by:

    As I posted before, I believe (reluctantly) that Benjamin is right to have problems with the derivatives stuff.

    1. not even congress can enact a law that retroactively changes legally executed contracts.  Can they??  What is wrong with grandfathering in existing deals?
    1. Derivatives do NOT need to extend to every corner of money.  The big banks are the target. Anything other than that better be examined very, very carefully.

    OK, now everyone hit hide if they disagree with me and have more than a casual media fed concept of derivatives / how they work / how they are sold.    

    Now should he hold up debate, no.  But this needs to be examined very, very closely.  And I dont think the senate floor is the place to do that examination.

    H. L. Mencken noted that Alf Landon "simply lacks the power to inflame the boobs."

    by DavoInRI on Tue Apr 27, 2010 at 06:05:59 PM PDT

    •  transparency and taxation (0+ / 0-)

      Transparency of transactions so Goldman-Sachs type plays would be impossible because everyone would know the worth.

      Taxation of transactions.

      If your holding alot of crap that is valuable because you lie about it, transparency will in fact seriously undercut your past transactions.

    •  "casual media fed concept" (1+ / 0-)
      Recommended by:

      of derivatives is the only reason to disagree with you?

      Your profound and ill-founded arrogance is showing.

      •  But its the truth. (0+ / 0-)

        99% of the public have only a slight clue to how derivatives work.  Sure, they can maybe mumble CDO, casino, and short and trillions.  But they don't know what they are talking about.

        Can the average taxpayer tell us how abacus 2007-ac1 was constructed? Have they read the offering book? Do they know the difference between super-senior and mezzanine?  If they can, would they be able to construct tranches of CDOs into the synth?  What would the interest rates be by tranche?

        No, I stand by my statement.  The public is chanting "derivatives are bad, stop the CODs."  All while not really having much of a clue.  

        H. L. Mencken noted that Alf Landon "simply lacks the power to inflame the boobs."

        by DavoInRI on Wed Apr 28, 2010 at 01:19:33 AM PDT

        [ Parent ]

    •  I agree that this needs to be debated (1+ / 0-)
      Recommended by:

      and I'm far from sure legislation applying retroactively to existing derivatives makes sense, and if it does make sense it has to be done very carefully. The potential ramifications are scary given the amount of money involved.

      I also think that Nelson was dead wrong to oppose the debate. But I'm not sure why you have a problem with the debate happening on the Senate floor - I'd like to hear some reasoning for that.

      •  maybe so (0+ / 0-)

        they could complain about backroom deals afterward?

        •  True, but someone complains no matter done. (0+ / 0-)

          Its OK to hold debates on the floor, but really ... dont the real discussions/agreements happen off the floor?  

          H. L. Mencken noted that Alf Landon "simply lacks the power to inflame the boobs."

          by DavoInRI on Wed Apr 28, 2010 at 07:16:09 AM PDT

          [ Parent ]

      •  The floor (0+ / 0-)

        Perhaps a reasonable debate could happen on the floor, but I have my doubts.  As my father used to say, it would be alot of "speechifying".  It would NOT be a discussion.

        In committee there can be alot of almost informal back and forth.  More of a discussion rather than a constant effort to score points.  

        Even more productive would be 1-1 talks by Dodd and Shelby.  

        And somewhat unfortunately, an amendment on the floor will be subject to that silly senate rule that it requires 60 votes to pass.  Really?  Does everything take 60 votes to pass nowadays?

        The repubs walked into this mess when Shelby (and Mitch) stupidly decided to offer no amendments in committee.  Bad move by the assholes.  Bob Corker, who seems rather open to compromise, was left blowing in the wind.  Then the SEC announced the complaint against GS and the repubs find themselves (rightly so) on the wrong side of this mess.  They now desperately want to compromise.

        Personally I think it is a bit of justice that every night the senate votes and the repubs look like assholes.  But meanwhile discussions continue hot and heavy behind the scenes on a good compromise.  They will make changes to the bill before bringing it to the floor.

        I will be very surprised if the derivatives and a few other things arent fixed for the better behind the scenes.  Corker's funeral fund (bank's money, not taxpayer's) will be added back in.  

        Then the bill will come to the floor and pass with about 75 votes later this week.  


        H. L. Mencken noted that Alf Landon "simply lacks the power to inflame the boobs."

        by DavoInRI on Wed Apr 28, 2010 at 01:08:16 AM PDT

        [ Parent ]

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site