"Unfortunately, on the major issue - too big to fail financial institutions that caused the 2008-09 crisis and that will likely trigger the next meltdown - there is nothing meaningful in the proposed legislation." -Simon Johnson
The bill is 1,336 pages (Reuters)
What? How can there be a Consumer Financial Protection Agency branch where if a systemic collapse were to occur, the Fed would freeze losses onto the investor? Puzzling piece of legislature there.
Notes from the bill:
The Federal Reserve would house the Consumer Financial Protection Agency.
The Fed is responsible for overseeing any financial institution with assets over $50 billion.
The bill calls for a systematic risk council headed by the Treasury Department.
Friday, January 21, 2011
Thursday, January 20, 2011
Unmasking the grin
From Looking Behind the Mug-Shot Grin - Sunday Times, Jan 16, 2011
Jared Loughner clearly has the attention of the American people. I'm no psychiatrist, but I would imagine that Mr. Loughner's grin reveals a sense of satisfaction or pleasure. Pleasure about what? That he's probably going to jail for the rest of his life? Or maybe it is that he finally would be able to construe his ideas to society (albeit in the form of a jury). The instance of being sent to the ER for being intoxicated in class and was crying to the police after being yelled at by his dad. Yes, this stuff happens all the time. But what does it take for a community to act upon the disproportion between psychiatric normalcy in the classroom and someone who, when they walk into a bank people shutter, clearly struggles with reality?
One thing is clear. This guy did not lock himself in a cabin up north and read Mein Kampf (although it was one of his favorites). Jared Loughner obviously put forth an effort to better himself. He:
Additionally, he clearly displayed a call for help. His video tape titled, "Pima Community College School - Genocide/Scam - Free Education - Broken United States Consitition," was clearly a discourse with society. What could correct Jared's thought process and what answers did he receive other than an officer coming to his garage and reading his letter of suspension?
"The more people became shocked and worried about him, the more withdrawn he got." said his friend from junior and senior high school, Breanna Castle.
"I think he feels the people should be able to govern themselves," said Ms. Figuerora, his former girlfriend. "We didn't need a higher authority."
And now he has our attention. He has my attention. I'm spending all morning writing this stuff and why? Because I think this could have been prevented. Rejection should be treated carefully and those around him, although their lives are probably heavily impacted, should still take a look in the mirror. Perhaps I am too harsh on them. Maybe no one could have predicted this but if I were close to him, I would have definitely offered my hand just as he had perpetually done the same.
Jared Loughner clearly has the attention of the American people. I'm no psychiatrist, but I would imagine that Mr. Loughner's grin reveals a sense of satisfaction or pleasure. Pleasure about what? That he's probably going to jail for the rest of his life? Or maybe it is that he finally would be able to construe his ideas to society (albeit in the form of a jury). The instance of being sent to the ER for being intoxicated in class and was crying to the police after being yelled at by his dad. Yes, this stuff happens all the time. But what does it take for a community to act upon the disproportion between psychiatric normalcy in the classroom and someone who, when they walk into a bank people shutter, clearly struggles with reality?
One thing is clear. This guy did not lock himself in a cabin up north and read Mein Kampf (although it was one of his favorites). Jared Loughner obviously put forth an effort to better himself. He:
- Tried at jobs; Peter Piper Pizza, the Mandarin Grill, Eddie Bauer.
- Volunteered at an animal care center
- Applied to join the army
- Enrolled in community college
Additionally, he clearly displayed a call for help. His video tape titled, "Pima Community College School - Genocide/Scam - Free Education - Broken United States Consitition," was clearly a discourse with society. What could correct Jared's thought process and what answers did he receive other than an officer coming to his garage and reading his letter of suspension?
"The more people became shocked and worried about him, the more withdrawn he got." said his friend from junior and senior high school, Breanna Castle.
"I think he feels the people should be able to govern themselves," said Ms. Figuerora, his former girlfriend. "We didn't need a higher authority."
And now he has our attention. He has my attention. I'm spending all morning writing this stuff and why? Because I think this could have been prevented. Rejection should be treated carefully and those around him, although their lives are probably heavily impacted, should still take a look in the mirror. Perhaps I am too harsh on them. Maybe no one could have predicted this but if I were close to him, I would have definitely offered my hand just as he had perpetually done the same.
Tuesday, January 11, 2011
Theory on Localization - The latter Proposal
Ok, we all know that the economic splurge of the mid 2000s was washed away by various market corrections, most notably the housing sector.
Say you have a localized economy. One in which a community maximizes their communicative entities to diminish stock market returns. Here's the theory.
Say you need a wrench. You have two options. One, you can go to Wal-Mart, a master in the economies of scale and a driver of fresh production.
Option 2 is that you can go door to door, ask a neighbor if they have a wrench that you can borrow, pay whatever fees they require and probably save a lot of money.
Today, America is split between two solutions. To go with the former option, one is to help the stock market, transfer real funds to investors and actually place additional macroeconomic debt on the nation (that is because most Americans need debt to survive if they are going to continue shopping at Wal-Mart and supporting the capitalist market).
The latter proposes a very possible solution to every day people who are already in debt. Yet, Wal-Mart has still managed to create a market that instills an illusion of saving, an illusion that devises conservative nationalistic and pro-War principles. Meanwhile, local stores are struggling and Obama is trying to balance the budget...yada yada yada.
The latter proposal is necessary for this nation to survive. No longer are average Americans asked to save for the additional Wal-Mart purchase, but they are asked everyday to meet their financial obligations. The latter is what allows Americans to save. If this country has any bright future, it does not come from allocating the average American salary to stock holders. It comes from saving.
Say you have a localized economy. One in which a community maximizes their communicative entities to diminish stock market returns. Here's the theory.
Say you need a wrench. You have two options. One, you can go to Wal-Mart, a master in the economies of scale and a driver of fresh production.
Option 2 is that you can go door to door, ask a neighbor if they have a wrench that you can borrow, pay whatever fees they require and probably save a lot of money.
Today, America is split between two solutions. To go with the former option, one is to help the stock market, transfer real funds to investors and actually place additional macroeconomic debt on the nation (that is because most Americans need debt to survive if they are going to continue shopping at Wal-Mart and supporting the capitalist market).
The latter proposes a very possible solution to every day people who are already in debt. Yet, Wal-Mart has still managed to create a market that instills an illusion of saving, an illusion that devises conservative nationalistic and pro-War principles. Meanwhile, local stores are struggling and Obama is trying to balance the budget...yada yada yada.
The latter proposal is necessary for this nation to survive. No longer are average Americans asked to save for the additional Wal-Mart purchase, but they are asked everyday to meet their financial obligations. The latter is what allows Americans to save. If this country has any bright future, it does not come from allocating the average American salary to stock holders. It comes from saving.
Thursday, January 6, 2011
Wednesday, January 5, 2011
Learn PHP
Might I recommend Larry Ullman to learn PHP.
I'm well on my way to creating a blog just after reading his PHP for the Web 3rd Edition.
I'm well on my way to creating a blog just after reading his PHP for the Web 3rd Edition.
Tuesday, January 4, 2011
Sunday, October 3, 2010
Whoa Flash Crash May 6
From the NY Times:
"Startlingly, as the computers of the high-frequency traders traded contracts back and forth, a "hot potato" effect was created, the report said, as contracts changed hands 27,000 times in 14 seconds, but with eventually only 200 actually being bought or sold."
Reaction:
Ok, so Waddell & Reed entered into a trade in the market, selling 75,000 E-Mini S&P futures contracts, using computer sell algorithms provided by Barclays Capital. However, it was up to Waddell & Reed to decide how to sell those contracts. These futures contracts normally would gradually be sold off in the market over a span of 5 hours. In this case, it took 20 minutes.
With that amount of volume in such a time frame, traders faced a wave of selling pressure. That is, the price of the futures dropped, allowing for traders to arbitrage the opportunity to buy such cheap forward contracts and, in return, sell "cash shares" (to quote from the Times) back on the real-time NYSE. This explains the huge drop and the subsequent rise in trading on the Dow Jones.
Consequentially, the result of this error will expand the monitoring desired by the SEC and the establishment of "circuit breakers" on a growing number of stocks. Mary Schapiro is the chairman of the SEC and Gary Gensler is the chairman of the CFTD.
"Startlingly, as the computers of the high-frequency traders traded contracts back and forth, a "hot potato" effect was created, the report said, as contracts changed hands 27,000 times in 14 seconds, but with eventually only 200 actually being bought or sold."
Reaction:
Ok, so Waddell & Reed entered into a trade in the market, selling 75,000 E-Mini S&P futures contracts, using computer sell algorithms provided by Barclays Capital. However, it was up to Waddell & Reed to decide how to sell those contracts. These futures contracts normally would gradually be sold off in the market over a span of 5 hours. In this case, it took 20 minutes.
With that amount of volume in such a time frame, traders faced a wave of selling pressure. That is, the price of the futures dropped, allowing for traders to arbitrage the opportunity to buy such cheap forward contracts and, in return, sell "cash shares" (to quote from the Times) back on the real-time NYSE. This explains the huge drop and the subsequent rise in trading on the Dow Jones.
Consequentially, the result of this error will expand the monitoring desired by the SEC and the establishment of "circuit breakers" on a growing number of stocks. Mary Schapiro is the chairman of the SEC and Gary Gensler is the chairman of the CFTD.
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