Shapiro was tapped by Obama to head the SEC. Bloomberg hails her as someone who can "overhaul" the SEC. I see her as "more of the same."
Why? Well, let's just keep it simple - she's a top brokerage regulator - a former CFTC head and FINRA CEO. How did Madoff manage to get under her radar, specifically, as CEO of FINRA?
Nor does it stop there. It appears that Shapiro appointed one of Madoff's sons to a position that oversaw disciplinary actions made by FINRA!
So there you have it. The hand-jobs under the table in politics have certainly not changed with the election of a new President.
Of course the media is fawning all over her, as is Schumer. And why wouldn't Schumer - after all, where the hell has he been in this scandal? As the head of Congress' Joint Economic Committee, he's got a few questions to answer too - not that I think he ever will.
Next up - Paulson's lies. I am counting the days until that butthat is gone from Washington DC - now there are rumors flying around that he does intend to try to grab the other $350 billion in the EESA/TARP while Congress is on recess - after explicitly saying he wouldn't.
Oh, and don't think that ZIRP means your credit card rates will be going down any time soon. That's ain't happening, according to Bloomberg:
Dec. 18 (Bloomberg) -- Credit-card companies, facing an increase in defaults and a decline in consumer spending, are raising some rates, adding fees and cutting credit lines as the Federal Reserve is poised to make the most sweeping changes to the industry in 30 years.
Right. See, The Fed is due to announce new rules that would prevent some of the worst abuses, such as "universal default", raising rates on existing balances and other similar games. The banks have been cutting back lines, boosting rates and adding junk fees ahead of this decision, fully-aware that they're going to be forced to behave in at least a slightly less outrageous fashion in the future.
In truth, I have mixed feelings about all of this. The idea that credit is a right is outrageous, and a big part of why we're in this economic mess. To those Americans who are unable to manage their money and use credit cards as an ever-increasing means of financing that which they can never pay off, I say "you are an economic child and need a spanking." How do I define that? If you routinely run a balance on your revolving lines, you qualify.
Simply put, there's no reason to do that if you live prudently.
Using credit as a means of financing the purchase of a new refrigerator when your old one blows up is marginally reasonable, assuming you can manage to pay it off within a year or so. I say its "marginally reasonable" because were the banks prudent they would not make available credit to someone who has zero reserves and lives "hand to mouth" - that customer is very high risk, and as such you'd either pay a usurious interest rate or be denied entirely. (Of course that hasn't happened over the last few years, has it?)
Using credit as a means of not having to carry cash, paying off the balance every month is entirely reasonable.
Using credit as a short-term (couple of months) means of bridging extraordinary expenses while retaining reserves is very reasonable - and prudent. You're trading paying interest for keeping your emergency fund intact - that's a business decision.
Using credit as a means of rolling balances from one card to another, hoping you can tap "increased wealth" via speculative investments such as your home or the stock market? That's manifestly unsound and if you do it for long enough you will go broke.
Forcing people in the latter group to recognize the idiocy of their lifestyle choices is, in the end, a good thing.
It won't be easy and it won't come without much wailing and gnashing of teeth, but in the intermediate and long term it is exactly what our economy needs - forcing people to put out additional productivity into the economy if they want to spend additional money.
Remember - the only true economic growth is found in the increased productivity of people - not shuffling paper.
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