Volcker Rule Impacts: Gold, Silver & Precious Metals
Many people doubt that the Volcker rule will truly put a stop to the proprietary trading by major banks. This article takes a closer look into how the precious metals market will be effected.
I was still a banker when it was repealed and I simply could not believe it!
I had broker friends at the time who were amazed as well! The only way to explain it is the audacity of power. A return to Glass Steagall would cause the breakup of the too big to fail and jail banks–and too, cause banks to make money the old fashion way by lending to worthy borrowers instead of playing/manipulating the markets with their super computers and free money from the Fed because they are ‘banks’.
“While it would certainly help if the prdiesent voiced a more compelling narrative, I am under no illusion that this alone would solve all his problems and ours. It comes back to us: We have to demand the truth from our politicians and be ready to accept it ourselves. We simply do not have another presidency to waste. There are no more fat years to eat through. If Obama fails, we all fail.” – Thomas L. Friedman, “The Fat Lady Has Sung,” NY Times, February 20, 2010 The point is that the administration has lost control over the narrative. Why have we lost 8 million jobs since December 2007? Why will debt-GDP rise by 40 percentage points relative to what the CBO baseline would have been? Who is responsible for this deep global disaster? Simon JohnsonMr. Johnson,Like many people, I am still waiting for the “narrative” to emerge after almost two years of financial collapse. I am not holding my breath in anticipation of the report by the Congressional committee. What, exactly, is the “narrative” that Obama should be promoting? Who is writing it? Where is it to be found? When will we get it? And, like many people, I am trying to piece it together from all sources available, this web site being one. We need a “definitive” story to surface as to who, what, when, why, where, how… And the “narrative” has to be true and useful, not politically partisan. I’m not an economics guy, though I struggle to understand how it all works. I mean, I do have skin in the game. Please, draw me a picture.
It looks like we are unlikely to see gold make any significant moves higher until The Asians gain the upper hand and then it will be to their advantage to defeat the gold paper US market. DT
Makes adding Phyzz so much easier picking it up at 2009 price levels….
You’re on the money with this one simon. I can see part of your job is to say things a ceiatrn way. Yes victiry in November is of a secondary concern compared to keeping the lobby money flowing.If the theater is performed correctly they can claim victory while handing the bank lobbies all they want.we have seen more than once Mr. Obama only gets out to lead when the poll numbers demand he does so. Why?In addition every time we get close to some kind of financial reform, he chooses to push health care refform distracting the public from the fact that he doesn’t really support financial reform. One must not forget his statements about Blankfien and Dimon (smart business people). Just look at his appointments and you know where he really stands. I always say ignore the rhetoric but look at the actions.His actions appear to be designed for what we would consider a failure. I’d guess he and his contibuters would consider it a success.My God, you can’t pressure Dodd, who doesn’t even have to worry about getting elected again to do the right thing?Let us also not forget Geitner was the one who made sure AIG folks would get their bonus by inserting it into the legislation at midnight before the vote. Geitner wouldn’t get away with it if it hadn’t been approved. Let’s get real, no way that wasn’t dome with the OK of the president. You and I would have told him to hit the streets after something like that. That big a deal with potential fallout I’m sure was OK’d. Notice the issue has been dropped (LOL)How about using the public pulpit to hammer the republicans as being against fairness, against what America stands for (good honest business practices), systemic stability, etc. There are real emotional populist crowd pleasers here for the taking, yet it isn’t done. Because he doesn’t want to galvanize the publics awareness, and get them to take action.These are guys who don’t feel they need to get in a car to go down to washington when the weather is too bad to fly to meet with Obama. Doesn’t that show you who the real bosses are in the relationship
Note that Paul Volcker went public this week claiming he had nothing to do this piece of Swiss cheese banking ‘reform’ that carries his name. Meanwhile the big banks continue to pay out $billions upon billions in fines–a token tax of sorts–for the 100s of $billions they made via unscrupulous if not illegal dealings on Wall Street. Note too, that those fines aren’t going to make whole those that got screwed.
Want real banking reform without all the loopholes, then keep it simple and restore Glass Steagall. The only thing complicated about that are all the K Street lobbyists standing in the way.