posted July 16, 2010 09:38 PM         

While general ineptitude and rampant obstructionism have delayed and watered down the two most important legislative bills in recent times, I remain O-positive.

This is a recent blog by Robert Reich. In it he tells why some stocks gained as soon as it was signed into law. He does so in language that takes the legalese out.

The New Finance Bill: A Mountain of Legislative Paper, a Molehill of Reform
Friday, July 16, 2010

Thursday the President pronounced that “because of this [financial reform] bill the American people will never again be asked to foot the bill for Wall Street’s mistakes.”

As if to prove him wrong, Goldman Sachs simultaneously announced it had struck a deal with federal prosecutors to pay $550 million to settle federal claims it misled investor — a sum representing a mere 15 days profit for the firm based on its 2009 earnings. Goldman’s share price immediately jumped 4.3 percent, and the Street proclaimed its chair and CEO, Lloyd (“Goldman is doing God’s work”) Blankfein, a winner. Financial analysts rushed to affirm a glowing outlook for Goldman stock.

Blankfein, you may recall, was at the meeting in late 2008 when Tim Geithner and Hank Paulson decided to bail out AIG, and thereby deliver through AIG a $13 billion no-strings-attached taxpayer windfall to Goldman. In a world where money is the measure of everything, Blankfein’s power and influence have grown. Presumably, Goldman can expect more windfalls in future years.

Although the financial reform bill may have clipped some of Goldman’s wings — its lucrative derivative business may require Goldman to jettison its status as a bank holding company, and the access to the Fed discount window that comes with it — the main point is that the Goldman settlement reveals everything that’s weakest about the financial reform bill.

more

posted July 16, 2010 10:58 PM         

Yeah Reich is right on top of things. The market closed DOWN 261 points today on the uncertaintly O'Bomber and his Socialist comrades created with the financial regulations bill.

Nice going and it's going to continue creating uncertainty in markets because it's going to be 2014 before all the bullshiiit kicks in with under this dumba$$ legislation.

posted July 16, 2010 11:06 PM         

and with comprehension what I wrote.

posted July 17, 2010 10:54 AM         

quote:

---

(I personally cannot believe I am using a football metaphor, but there ya go.)

---