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New Jersey Native Nominated to take the Helm of the Commodity Futures Trading Commission

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March 16,2017

the staff of the Ridgewood blog

Washington DC, President Donald Trump this week nominated New Jersey native J. Christopher Giancarlo to serve as chairman of the Commodity Futures Trading Commission .The commission regulates the derivatives market, a part of Wall Street that has been criticized for helping spur the financial crisis of 2008.

Giancarlo, who grew up in north Jersey and lives in Haworth in Bergen County, has served as a commissioner on the board since 2014 an acting commissioner since January.

Giancarlo was born in Jersey City, New Jersey. He attended Skidmore College in Saratoga Springs, New York where he graduated Phi Beta Kappa with Government Department Honors.  Mr. Giancarlo received his law degree from the Vanderbilt University School of Law where he was an associate research editor at the Vanderbilt Journal of Transnational Law and President of the Law School’s International Law Society. Mr. Giancarlo has been a member of the Bar of the State of New York since 1985

He was nominated by President Obama on August 1, 2013 and confirmed by unanimous consent of the U.S. Senate on June 3, 2014.  On June 16, 2014, he was sworn in as a CFTC Commissioner for a term expiring in April 2019.  Mr. Giancarlo was designated per seriatim as Acting Chairman of the Commission on January 20, 2017.

Before entering public service, Mr. Giancarlo served as the Executive Vice President of GFI Group Inc., a financial services firm. Prior to joining GFI, Mr. Giancarlo was Executive Vice President and U.S. Legal Counsel of Fenics Software and was a corporate partner in the New York law firm of Brown Raysman Millstein Felder & Steiner. Mr. Giancarlo joined Brown Raysman from Giancarlo & Gleiberman, a law practice founded by Mr. Giancarlo in 1992 following his return from several years in London with the international law firm of Curtis, Mallet-Prevost, Colt & Mosle.

Mr. Giancarlo was also a founding Co-Editor-in-Chief of eSecurities, Trading and Regulation on the Internet (Leader Publications).  In addition, Mr. Giancarlo has testified three times before Congress regarding the implementation of the Dodd-Frank Act, and has written and spoken extensively on public policy, legal and other matters involving technology and the financial markets.

Fresh on the heels of being nominated by the White House Tuesday to be Chairman of the US Commodity Futures Trading Commission, J. Christopher Giancarlo spelled out plans to reorganize the agency and “right-size” its regulatory footprint.

“The overly prescriptive regulation of American derivative markets is a part and parcel of the over-regulation of the US economy that thwarts revival of American prosperity,” he said in a speech prepared for delivery at the International Futures Industry conference in Boca Raton, Florida, Wednesday.

To carry out one of President Donald Trump’s executive orders of regulatory reform, Giancarlo announced the launch of an agency-wide review of CFTC regulations and practices “to make them simpler, less burdensome and less costly,” and said the CFTC will seek public comment on that effort.

The regulatory reform initiative, dubbed Project KISS for “Keep It Simple Stupid” will be led by Mike Gill, Giancarlo’s chief of staff, who will serve as the “regulatory reform officer.”

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‘Dismantling Dodd-Frank’ a Top Priority for Administration, Congress

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January 27,2017
the staff of the Ridgewood blog

Ridgewood NJ,  After President Trump today said Congress should make financial regulatory reform a priority to “help striving Americans get the credit they need to realize their dreams” and Vice President Pence said “dismantling Dodd-Frank” is a top legislative priority for the Trump Administration, House Financial Services Committee Chairman Jeb Hensarling (R-TX) issued the following statement:

“No bureaucrat in Washington should be able to tell hardworking Americans what kind of credit card, bank account, mortgage or retirement advice they can have, but that’s exactly what Dodd-Frank does.  As the President and Vice President have said, Dodd-Frank makes it harder for people to get loans to buy a home or start a small business.  Consumers are paying more in fees and are losing benefits and access to services they want and need.  Instead of ending ‘too big to fail,’ Dodd-Frank institutionalizes bailouts for big banks. Dodd-Frank’s regulations give Wall Street a competitive advantage over community banks and credit unions. In fact, since Dodd-Frank became law the big banks have gotten bigger and the small banks are fewer.

“Fulfilling the Trump Administration’s pledge to dismantle Dodd-Frank this year is essential to leveling the playing field, building a healthy economy and offering every American greater opportunities to achieve financial independence.

“Republicans on the Financial Services Committee are eager to work with the President and his administration to unclog the arteries of our financial system so the lifeblood of capital can flow more freely and create jobs.  The Financial CHOICE Act, our bold and forward looking plan, replaces Dodd-Frank with new policies to protect consumers by holding Wall Street and Washington accountable, end bailouts and unleash America’s economic potential.

“Replacing the Dodd-Frank mistake is necessary if we ever hope to enjoy a healthy economy and make America great again.”

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President-Elect Donald J. Trump Nominates Jay Clayton Chairman of the SEC

Jay Clayton Chairman of the SEC

January 6,2016

the staff of the Ridgewood blog

Ridgewood NJ, President-elect Donald J. Trump today announced he intends to nominate Jay Clayton Chairman of the Securities and Exchange Commission (SEC).

Clayton is currently a partner with Sullivan & Cromwell LLP and brings decades of experience helping companies navigate complex federal regulations to the position.  Clayton will play an important role in unleashing the job-creating power of our economy by encouraging investment in American companies while providing strong oversight of Wall Street and related industries. Robust accountability will be a hallmark of his tenure atop the SEC, and the financial security of the American people will be his top priority.

“Jay Clayton is a highly talented expert on many aspects of financial and regulatory law, and he will ensure our financial institutions can thrive and create jobs while playing by the rules at the same time,” said President-elect Trump. “We need to undo many regulations which have stifled investment in American businesses, and restore oversight of the financial industry in a way that does not harm American workers.”

“I want to thank President-elect Trump for the opportunity to serve as SEC Chairman,” said Jay Clayton. “If confirmed, we are going to work together with key stakeholders in the financial system to make sure we provide investors and our companies with the confidence to invest together in America. We will carefully monitor our financial sector, as we set policy that encourages American companies to do what they do best: create jobs.”

Clayton has had a long and distinguished career advising on public and private mergers and acquisitions transactions, capital markets offerings, regulatory and enforcement proceedings, and other matters. In addition to numerous awards recognizing him as one of the top corporate lawyers in America, Clayton has also authored multiple publications on regulatory law, and has been an adjunct professor at the University of Pennsylvania School of Law. Clayton received a B.S. in engineering from the University of Pennsylvania in 1988 and a B.A. in economics from the University of Cambridge in 1990. He received his J.D. from the University of Pennsylvania School of Law in 1993.

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Goldman Says Trump’s Presidency Will Benefit Stocks in Almost Every Sector

Trump_hat_boarder-theridgewoodblog

#MAGA comes to Wall Street.

by Julie Verhage

After years of slowing earnings growth and little in the way of excitement for many Wall Street analysts, many are now hopeful that President-elect Donald Trump will finally make things interesting.

When collating data for the Goldman Sachs Group Inc. Analyst Index — a proprietary measure of growth across different sectors of the S&P 500 — the firm included a question this month on what the election of Donald Trump will mean for the industries covered by those surveyed. Turns out, they are rather optimistic.

“This month, we asked analysts to comment on how the results of the U.S. election will affect companies in their respective sectors,” the team led by Avisha Thakkar writes in the new note. “While their responses suggest that there is still uncertainty about the sector-level impact, the majority of sectors are anticipating favorable effects,” they say, adding that expectations of lower tax rates and economic stimulus are among key reasons for the favorable outlook.

https://www.bloomberg.com/news/articles/2016-11-30/goldman-says-trump-s-presidency-will-benefit-stocks-in-almost-every-sector

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Donald Trump’s election has Wall Street questioning the future of the Federal Reserve

mother goose

Bob Bryan

As Wall Street grapples with the election of Donald Trump as the next US president, it appears the order of the day is uncertainty.

Among the myriad uncertain consequences of Trump’s election is the real possibility of a major shake-up at the Federal Reserve.

Jefferies economist Sean Darby said that in terms of possible problems for the economy going forward the “main risk is monetary policy uncertainty.”

The most striking uncertainty for some analysts is the political independence of the Fed — to not have monetary-policy decisions influenced by ever-shifting political tides has long been a key aspect of the central bank.

Some analysts now say that independence may no longer be assured.

https://www.businessinsider.com/donald-trump-presidential-election-federal-reserve-janet-yellen-2016-11

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Wikileaks Releases Email Transcripts from Hillary Clinton, Goldman Sachs Speeches

hillary-clinton-what-difference-does-it-make

October 09,2016

the staff of the Ridgewood blog

Ridgewood NJ, this week Wikileaks began released more Clinton emails most of which from transcripts of Hillary Clinton Speeches at various Wall Street Firms including Goldman Sachs .

Here are a few notable quotes :

*CLINTON ADMITS SHE IS OUT OF TOUCH*

*Hillary Clinton: “I’m Kind Of Far Removed” From The Struggles Of The Middle Class “Because The Life I’ve Lived And The Economic, You Know, Fortunes That My Husband And I Now Enjoy.”*

“And I am not taking a position on any policy, but I do think there is a growing sense of anxiety and even anger in the country over the feeling that the game is rigged. And I never had that feeling when I was growing up. Never. I mean, were there really rich people, of course there were. My father loved to complain about big business and big government, but we had a solid middle class upbringing. We had good public schools. We had accessible health care. We had our little, you know, one-family house that, you know, he saved up his money, didn’t believe in mortgages. So I lived that. And now, obviously, I’m kind of far removed because the life I’ve lived and the economic, you know, fortunes that my husband and I now enjoy, but I haven’t forgotten it.” [Hillary Clinton Remarks at Goldman-Black Rock, 2/4/14]

*CLINTON SAYS YOU NEED TO HAVE A PRIVATE AND PUBLIC POSITION ON POLICY*

*Clinton: “But If Everybody’s Watching, You Know, All Of The Back Room Discussions And The Deals, You Know, Then People Get A Little Nervous, To Say The Least. So, You Need Both A Public And A Private Position.”*

CLINTON: You just have to sort of figure out how to — getting back to that word, “balance” — how to balance the public and the private efforts that are necessary to be successful, politically, and that’s not just a comment about today. That, I think, has probably been true for all of our history, and if you saw the Spielberg movie, Lincoln, and how he was maneuvering and working to get the 13th Amendment passed, and he called one of my favorite predecessors, Secretary Seward, who had been the governor and senator from New York, ran against Lincoln for president, and he told Seward, I need your help to get this done. And Seward called some of his lobbyist friends who knew how to make a deal, and they just kept going at it. I mean, politics is like sausage being made. It is unsavory, and it always has been that way, but we usually end up where we need to be. But if everybody’s watching, you know, all of the back room discussions and the deals, you know, then people get a little nervous, to say the least. So, you need both a public and a private position. And finally, I think — I believe in evidence-based decision making. I want to know what the facts are. I mean, it’s like when you guys go into some kind of a deal, you know, are you going to do that development or not, are you going to do that renovation or not, you know, you look at the numbers. You try to figure out what’s going to work and what’s not going to work. [Clinton Speech For National Multi-Housing Council, 4/24/13]

*CLINTON TALKS ABOUT HOLDING WALL STREET ACCOUNTABLE ONLY FOR POLITICAL REASONS*

*Clinton Said That The Blame Placed On The United States Banking System For The Crisis “Could Have Been Avoided In Terms Of Both Misunderstanding And Really Politicizing What Happened.”*

“That was one of the reasons that I started traveling in February of ‘09, so people could, you know, literally yell at me for the United States and our banking system causing this everywhere. Now, that’s an oversimplification we know, but it was the conventional wisdom. And I think that there’s a lot that could have been avoided in terms of both misunderstanding and really politicizing what happened with greater transparency, with greater openness on all sides, you know, what happened, how did it happen, how do we prevent it from happening? You guys help us figure it out and let’s make sure that we do it right this time. And I think that everybody was desperately trying to fend off the worst effects institutionally, governmentally, and there just wasn’t that opportunity to try to sort this out, and that came later.” [Goldman Sachs AIMS Alternative Investments Symposium, 10/24/13]

*Clinton: “Even If It May Not Be 100 Percent True, If The Perception Is That Somehow The Game Is Rigged, That Should Be A Problem For All Of Us.” *

“Now, it’s important to recognize the vital role that the financial markets play in our economy and that so many of you are contributing to. To function effectively those markets and the men and women who shape them have to command trust and confidence, because we all rely on the market’s transparency and integrity. So even if it may not be 100 percent true, if the perception is that somehow the game is rigged, that should be a problem for all of us, and we have to be willing to make that absolutely clear. And if there are issues, if there’s wrongdoing, people have to be held accountable and we have to try to deter future bad behavior, because the public trust is at the core of both a free market economy and a democracy.” [Clinton Remarks to Deutsche Bank, 10/7/14]

*CLINTON SUGGESTS WALL STREET INSIDERS ARE WHAT IS NEEDED TO FIX WALL STREET*

*Clinton Said Financial Reform “Really Has To Come From The Industry Itself.” *

“Remember what Teddy Roosevelt did. Yes, he took on what he saw as the excesses in the economy, but he also stood against the excesses in politics. He didn’t want to unleash a lot of nationalist, populistic reaction. He wanted to try to figure out how to get back into that balance that has served America so well over our entire nationhood. Today, there’s more that can and should be done that really has to come from the industry itself, and how we can strengthen our economy, create more jobs at a time where that’s increasingly challenging, to get back to Teddy Roosevelt’s square deal. And I really believe that our country and all of you are up to that job.” [Clinton Remarks to Deutsche Bank, 10/7/14]

*Speaking About The Importance Of Proper Regulation, Clinton Said “The People That Know The Industry Better Than Anybody Are The People Who Work In The Industry.”*

“I mean, it’s still happening, as you know. People are looking back and trying to, you know, get compensation for bad mortgages and all the rest of it in some of the agreements that are being reached. There’s nothing magic about regulations, too much is bad, too little is bad. How do you get to the golden key, how do we figure out what works? And the people that know the industry better than anybody are the people who work in the industry. And I think there has to be a recognition that, you know, there’s so much at stake now, I mean, the business has changed so much and decisions are made so quickly, in nano seconds basically. We spend trillions of dollars to travel around the world, but it’s in everybody’s interest that we have a better framework, and not just for the United States but for the entire world, in which to operate and trade.” [Goldman Sachs AIMS Alternative Investments Symposium, 10/24/13]

*CLINTON ADMITS NEEDING WALL STREET FUNDING*

*Clinton Said That Because Candidates Needed Money From Wall Street To Run For Office, People In New York Needed To Ask Tough Questions About The Economy Before Handing Over Campaign Contributions. *

“Secondly, running for office in our country takes a lot of money, and candidates have to go out and raise it. New York is probably the leading site for contributions for fundraising for candidates on both sides of the aisle, and it’s also our economic center. And there are a lot of people here who should ask some tough questions before handing over campaign contributions to people who were really playing chicken with our whole economy.” [Goldman Sachs AIMS Alternative Investments Symposium, 10/24/13]

*Clinton: “It Would Be Very Difficult To Run For President Without Raising A Huge Amount Of Money And Without Having Other People Supporting You Because Your Opponent Will Have Their Supporters.”*

“So our system is, in many ways, more difficult, certainly far more expensive and much longer than a parliamentary system, and I really admire the people who subject themselves to it. Even when I, you know, think they should not be elected president, I still think, well, you know, good for you I guess, you’re out there promoting democracy and those crazy ideas of yours. So I think that it’s something — I would like — you know, obviously as somebody who has been through it, I would like it not to last as long because I think it’s very distracting from what we should be doing every day in our public business. I would like it not to be so expensive. I have no idea how you do that. I mean, in my campaign — I lose track, but I think I raised $250 million or some such enormous amount, and in the last campaign President Obama raised 1.1 billion, and that was before the Super PACs and all of this other money just rushing in, and it’s so ridiculous that we have this kind of free for all with all of this financial interest at stake, but, you know, the Supreme Court said that’s basically what we’re in for. So we’re kind of in the wild west, and, you know, it would be very difficult to run for president without raising a huge amount of money and without having other people supporting you because your opponent will have their supporters. So I think as hard as it was when I ran, I think it’s even harder now.” [Clinton Speech For General Electric’s Global Leadership Meeting – Boca Raton, FL, 1/6/14]

*CLINTON TOUTS HER RELATIONSHIP TO WALL STREET AS A SENATOR*

*Clinton: As Senator, “I Represented And Worked With” So Many On Wall Street And “Did All I Could To Make Sure They Continued To Prosper” But Still Called For Closing Carried Interest Loophole.*

In remarks at Robbins, Gellar, Rudman & Dowd in San Diego, Hillary Clinton said, “When I was a Senator from New York, I represented and worked with so many talented principled people who made their living in finance. But even thought I represented them and did all I could to make sure they continued to prosper, I called for closing the carried interest loophole and addressing skyrocketing CEO pay. I also was calling in ‘06, ‘07 for doing something about the mortgage crisis, because I saw every day from Wall Street literally to main streets across New York how a well-functioning financial system is essential. So when I raised early warnings about early warnings about subprime mortgages and called for regulating derivatives and over complex financial products, I didn’t get some big arguments, because people sort of said, no, that makes sense. But boy, have we had fights about it ever since.” [Hillary Clinton’s Remarks at Robbins Geller Rudman & Dowd in San Diego, 9/04/14]

*Clinton On Wall Street: “I Had Great Relations And Worked So Close Together After 9/11 To Rebuild Downtown, And A Lot Of Respect For The Work You Do And The People Who Do It.”

*“Now, without going over how we got to where we are right now, what would be your advice to the Wall Street community and the big banks as to the way forward with those two important decisions? SECRETARY CLINTON: Well, I represented all of you for eight years. I had great relations and worked so close together after 9/11 to rebuild downtown, and a lot of respect for the work you do and the people who do it, but I do — I think that when we talk about the regulators and the politicians, the economic consequences of bad decisions back in ‘08, you know, were devastating, and they had repercussions throughout the world.” [Goldman Sachs AIMS Alternative Investments Symposium, 10/24/13]

*CLINTON TALKS ABOUT THE CHALLENGES RUNNING FOR OFFICE*

*Hillary Clinton Said There Was “A Bias Against People Who Have Led Successful And/Or Complicated Lives,” Citing The Need To Divese Of Assets, Positions, And Stocks.*

“SECRETARY CLINTON: Yeah. Well, you know what Bob Rubin said about that. He said, you know, when he came to Washington, he had a fortune. And when he left Washington, he had a small —

MR. BLANKFEIN: That’s how you have a small fortune, is you go to Washington.

SECRETARY CLINTON: You go to Washington. Right. But, you know, part of the problem with the political situation, too, is that there is such a bias against people who have led successful and/or complicated lives. You know, the divestment of assets, the stripping of all kinds of positions, the sale of stocks. It just becomes very onerous and unnecessary.” [Goldman Sachs Builders And Innovators Summit, 10/29/13]

*CLINTON SUGGESTS SHE IS A MODERATE*

*Clinton Said That Both The Democratic And Republican Parties Should Be “Moderate.” *

“URSULA BURNS: Interesting. Democrats?

SECRETARY CLINTON: Oh, long, definitely.

URSULA BURNS: Republicans?

SECRETARY CLINTON: Unfortunately, at the time, short.

URSULA BURNS: Okay. We’ll go back to questions.

SECRETARY CLINTON: We need two parties.

URSULA BURNS: Yeah, we do need two parties.

SECRETARY CLINTON: Two sensible, moderate, pragmatic parties.” [Hillary Clinton Remarks, Remarks at Xerox, 3/18/14]

*Clinton: “Simpson-Bowles… Put Forth The Right Framework. Namely, We Have To Restrain Spending, We Have To Have Adequate Revenues, And We Have To Incentivize Growth. It’s A Three-Part Formula… And They Reached An Agreement. But What Is Very Hard To Do Is To Then Take That Agreement If You Don’t Believe That You’re Going To Be Able To Move The Other Side.”*

SECRETARY CLINTON: Well, this may be borne more out of hope than experience in the last few years. But Simpson-Bowles — and I know you heard from Erskine earlier today — put forth the right framework. Namely, we have to restrain spending, we have to have adequate revenues, and we have to incentivize growth. It’s a three-part formula. The specifics can be negotiated depending upon whether we’re acting in good faith or not. And what Senator Simpson and Erskine did was to bring Republicans and Democrats alike to the table, and you had the full range of ideological views from I think Tom Coburn to Dick Durbin. And they reached an agreement. But what is very hard to do is to then take that agreement if you don’t believe that you’re going to be able to move the other side. And where we are now is in this gridlocked dysfunction. So you’ve got Democrats saying that, you know, you have to have more revenues; that’s the sine qua non of any kind of agreement. You have Republicans saying no, no, no on revenues; you have to cut much more deeply into spending. Well, looks what’s happened. We are slowly returning to growth. It’s not as much or as fast as many of us would like to see, but, you know, we’re certainly better off than our European friends, and we’re beginning to, I believe, kind of come out of the long aftermath of the ‘08 crisis. [Clinton Speech For Morgan Stanley, 4/18/13]

*Clinton: “The Simpson-Bowles Framework And The Big Elements Of It Were Right… You Have To Restrain Spending, You Have To Have Adequate Revenues, And You Have To Have Growth.”*

CLINTON: So, you know, the Simpson-Bowles framework and the big elements of it were right. The specifics can be negotiated and argued over. But you got to do all three. You have to restrain spending, you have to have adequate revenues, and you have to have growth. And I think we are smart enough to figure out how to do that. [Clinton Speech For Morgan Stanley, 4/18/13]

*CLINTON IS AWARE OF SECURITY CONCERNS AROUND BLACKBERRIES*

*Clinton: “At The State Department We Were Attacked Every Hour, More Than Once An Hour By Incoming Efforts To Penetrate Everything We Had. And That Was True Across The U.S. Government.”*

CLINTON: But, at the State Department we were attacked every hour, more than once an hour by incoming efforts to penetrate everything we had. And that was true across the U.S. government. And we knew it was going on when I would go to China, or I would go to Russia, we would leave all of our electronic equipment on the plane, with the batteries out, because this is a new frontier. And they’re trying to find out not just about what we do in our government. They’re trying to find out about what a lot of companies do and they were going after the personal emails of people who worked in the State Department. So it’s not like the only government in the world that is doing anything is the United States. But, the United States compared to a number of our competitors is the only government in the world with any kind of safeguards, any kind of checks and balances. They may in many respects need to be strengthened and people need to be reassured, and they need to have their protections embodied in law. But, I think turning over a lot of that material intentionally or unintentionally, because of the way it can be drained, gave all kinds of information not only to big countries, but to networks and terrorist groups, and the like. So I have a hard time thinking that somebody who is a champion of privacy and liberty has taken refuge in Russia under Putin’s authority. And then he calls into a Putin talk show and says, President Putin, do you spy on people? And President Putin says, well, from one intelligence professional to another, of course not. Oh, thank you so much. I mean, really, I don’t know. I have a hard time following it. [Clinton Speech At UConn, 4/23/14]

*Hillary Clinton: “When I Got To The State Department, It Was Still Against The Rules To Let Most — Or Let All Foreign Service Officers Have Access To A Blackberry.” *

“I mean, let’s face it, our government is woefully, woefully behind in all of its policies that affect the use of technology. When I got to the State Department, it was still against the rules to let most — or let all Foreign Service Officers have access to a Blackberry. You couldn’t have desktop computers when Colin Powell was there. Everything that you are taking advantage of, inventing and using, is still a generation or two behind when it comes to our government.” [Hillary Clinton Remarks at Nexenta, 8/28/14]

*Hillary Clinton: “We Couldn’t Take Our Computers, We Couldn’t Take Our Personal Devices” Off The Plane In China And Russia. *

“I mean, probably the most frustrating part of this whole debate are countries acting like we’re the only people in the world trying to figure out what’s going on. I mean, every time I went to countries like China or Russia, I mean, we couldn’t take our computers, we couldn’t take our personal devices, we couldn’t take anything off the plane because they’re so good, they would penetrate them in a minute, less, a nanosecond. So we would take the batteries out, we’d leave them on the plane.” [Hillary Clinton Remarks at Nexenta, 8/28/14]

*Clinton Said When She Got To State, Employees “Were Not Mostly Permitted To Have Handheld Devices.”*

“You know, when Colin Powell showed up as Secretary of State in 2001, most State Department employees still didn’t even have computers on their desks. When I got there they were not mostly permitted to have handheld devices. I mean, so you’re thinking how do we operate in this new environment dominated by technology, globalizing forces? We have to change, and I can’t expect people to change if I don’t try to model it and lead it.” [Clinton Speech For General Electric’s Global Leadership Meeting – Boca Raton, FL, 1/6/14]

*Hillary Clinton Said You Know You Can’t Bring Your Phone And Computer When Traveling To China And Russia And She Had To Take Her Batteries Out And Put them In A Special Box. *

“And anybody who has ever traveled in other countries, some of which shall remain nameless, except for Russia and China, you know that you can’t bring your phones and your computers. And if you do, good luck. I mean, we would not only take the batteries out, we would leave the batteries and the devices on the plane in special boxes. Now, we didn’t do that because we thought it would be fun to tell somebody about. We did it because we knew that we were all targets and that we would be totally vulnerable. So it’s not only what others do to us and what we do to them and how many people are involved in it. It’s what’s the purpose of it, what is being collected, and how can it be used. And there are clearly people in this room who know a lot about this, and some of you could be very useful contributors to that conversation because you’re sophisticated enough to know that it’s not just, do it, don’t do it. We have to have a way of doing it, and then we have to have a way of analyzing it, and then we have to have a way of sharing it.” [Goldman Sachs Builders And Innovators Summit, 10/29/13]

*Hillary Clinton Lamented How Far Behind The State Department Was In Technology, Saying “People Were Not Even Allowed To Use Mobile Devices Because Of Security Issues.” *

“Personally, having, you know, lived and worked in the White House, having been a senator, having been Secretary of State, there has traditionally been a great pool of very talented, hard-working people. And just as I was saying about the credit market, our personnel policies haven’t kept up with the changes necessary in government. We have a lot of difficulties in getting—when I got to the State Department, we were so far behind in technology, it was embarrassing. And, you know, people were not even allowed to use mobile devices because of security issues and cost issues, and we really had to try to push into the last part of the 20th Century in order to get people functioning in 2009 and ‘10.” [Goldman Sachs Builders And Innovators Summit, 10/29/13]

*CLINTON REMARKS ARE PRO KEYSTONE AND PRO TRADE*

*Clinton: “So I Think That Keystone Is A Contentious Issue, And Of Course It Is Important On Both Sides Of The Border For Different And Sometimes Opposing Reasons…” *

“So I think that Keystone is a contentious issue, and of course it is important on both sides of the border for different and sometimes opposing reasons, but that is not our relationship. And I think our relationship will get deeper and stronger and put us in a position to really be global leaders in energy and climate change if we worked more closely together. And that’s what I would like to see us do.” [Remarks at tinePublic, 6/18/14]

*Hillary Clinton Said Her Dream Is A Hemispheric Common Market, With Open Trade And Open Markets. *

“My dream is a hemispheric common market, with open trade and open borders, some time in the future with energy that is as green and sustainable as we can get it, powering growth and opportunity for every person in the hemisphere.” [05162013 Remarks to Banco Itau.doc, p. 28]

*Hillary Clinton Said We Have To Have A Concerted Plan To Increase Trade; We Have To Resist Protectionism And Other Kinds Of Barriers To Trade.

*“Secondly, I think we have to have a concerted plan to increase trade already under the current circumstances, you know, that Inter-American Development Bank figure is pretty surprising. There is so much more we can do, there is a lot of low hanging fruit but businesses on both sides have to make it a priority and it’s not for governments to do but governments can either make it easy or make it hard and we have to resist, protectionism, other kinds of barriers to market access and to trade and I would like to see this get much more attention and be not just a policy for a year under president X or president Y but a consistent one.” [05162013 Remarks to Banco Itau.doc, p. 32]

*CLINTON IS MORE FAVORABLE TO CANADIAN HEALTH CARE AND SINGLE PAYER*

*Clinton Said Single-Payer Health Care Systems “Can Get Costs Down,” And “Is As Good Or Better On Primary Care,” But “They Do Impose Things Like Waiting Times.” *

“If you look at countries that are comparable, like Switzerland or Germany, for example, they have mixed systems. They don’t have just a single-payer system, but they have very clear controls over budgeting and accountability. If you look at the single-payer systems, like Scandinavia, Canada, and elsewhere, they can get costs down because, you know, although their care, according to statistics, overall is as good or better on primary care, in particular, they do impose things like waiting times, you know. It takes longer to get like a hip replacement than it might take here.” [Hillary Clinton remarks to ECGR Grand Rapids, 6/17/13]

*Clinton Cited President Johnson’s Success In Establishing Medicare And Medicaid And Said She Wanted To See The U.S. Have Universal Health Care Like In Canada.*

“You know, on healthcare we are the prisoner of our past. The way we got to develop any kind of medical insurance program was during World War II when companies facing shortages of workers began to offer healthcare benefits as an inducement for employment. So from the early 1940s healthcare was seen as a privilege connected to employment. And after the war when soldiers came back and went back into the market there was a lot of competition, because the economy was so heated up. So that model continued. And then of course our large labor unions bargained for healthcare with the employers that their members worked for. So from the early 1940s until the early 1960s we did not have any Medicare, or our program for the poor called Medicaid until President Johnson was able to get both passed in 1965. So the employer model continued as the primary means by which working people got health insurance. People over 65 were eligible for Medicare. Medicaid, which was a partnership, a funding partnership between the federal government and state governments, provided some, but by no means all poor people with access to healthcare. So what we’ve been struggling with certainly Harry Truman, then Johnson was successful on Medicare and Medicaid, but didn’t touch the employer based system, then actually Richard Nixon made a proposal that didn’t go anywhere, but was quite far reaching. Then with my husband’s administration we worked very hard to come up with a system, but we were very much constricted by the political realities that if you had your insurance from your employer you were reluctant to try anything else. And so we were trying to build a universal system around the employer-based system. And indeed now with President Obama’s legislative success in getting the Affordable Care Act passed that is what we’ve done. We still have primarily an employer-based system, but we now have people able to get subsidized insurance. So we have health insurance companies playing a major role in the provision of healthcare, both to the employed whose employers provide health insurance, and to those who are working but on their own are not able to afford it and their employers either don’t provide it, or don’t provide it at an affordable price. We are still struggling. We’ve made a lot of progress. Ten million Americans now have insurance who didn’t have it before the Affordable Care Act, and that is a great step forward. (Applause.) And what we’re going to have to continue to do is monitor what the costs are and watch closely to see whether employers drop more people from insurance so that they go into what we call the health exchange system. So we’re really just at the beginning. But we do have Medicare for people over 65. And you couldn’t, I don’t think, take it away if you tried, because people are very satisfied with it, but we also have a lot of political and financial resistance to expanding that system to more people. So we’re in a learning period as we move forward with the implementation of the Affordable Care Act. And I’m hoping that whatever the shortfalls or the glitches have been, which in a big piece of legislation you’re going to have, those will be remedied and we can really take a hard look at what’s succeeding, fix what isn’t, and keep moving forward to get to affordable universal healthcare coverage like you have here in Canada. [Clinton Speech For tinePublic – Saskatoon, CA, 1/21/15]

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Rep. Garrett to Chair Yellen: why does the Fed favor Wall Street over Main Street?

House Budget Panel Holds Hearing to Receive  Views on Fiscal 2012
July 1,2016

the staff of the Ridgewood blog

Ridgewood NJ, In case you missed it, earlier this week Rep. Scott Garrett asked Fed Chair Janet Yellen why the Fed of pursues policies that help the rich at the expense of the poor. Garrett schooled Fed Chair Yellen on the damaging impact her policies have had on the middle class in this country . Garret said the net effect of Fed and administration policy has been to widen income inequality.

In this clip Garrett turns the Fed’s own language against itself and details how Fed policies have hurt African America’s and other  minority groups , as well as the middle class  .

 Watch the clip and let me know your thoughts.
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The world can’t afford another financial crash – it could destroy capitalism as we know it

wall-street-bull

A new economic crisis would trigger a political backlash in Britain, Europe and the United States which could drag us all down into poverty

By Allister Heath

10:24PM GMT 10 Feb 2016

They bounce back after terrorist attacks, pick themselves up after earthquakes and cope with pandemics such as Zika. They can even handle years of economic uncertainty, stagnant wages and sky-high unemployment. But no developed nation today could possibly tolerate another wholesale banking crisis and proper, blood and guts recession.

We are too fragile, fiscally as well as psychologically. Our economies, cultures and polities are still paying a heavy price for the Great Recession; another collapse, especially were it to be accompanied by a fresh banking bailout by the taxpayer, would trigger a cataclysmic, uncontrollable backlash.

The public, whose faith in elites and the private sector was rattled after 2007-09, would simply not wear it. Its anger would be so explosive, so-all encompassing that it would threaten the very survival of free trade, of globalisation and of the market-based economy. There would be calls for wage and price controls, punitive, ultra-progressive taxes, a war on the City and arbitrary jail sentences.

https://www.telegraph.co.uk/finance/newsbysector/banksandfinance/12151115/The-world-cant-afford-another-financial-crash-it-could-destroy-capitalism-as-we-know-it.html

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Wyckoff Democrat launches campaign against Scott Garrett, Bailouts ,Bailouts and More Bailouts

Joshua S

February 8,2016

the staff of the Ridgewood blog

Wyckoff NJ, Former White House speechwriter  officially will seek to oust U.S. Rep. Scott Garrett (R-5th Dist.) with an announcement Monday afternoon in Northvale. U.S. Sen. Cory Booker (D-N.J.) is scheduled to be there as well.

The Wyckoff Democrat Gottheimer is a former speech writer for President Bill Clinton and worked in corporate strategy for Microsoft. He grew up in North Caldwell and has lived for the past four years in Wyckoff with his wife and two children.

“Scott Garrett isn’t pro-family,” Gottheimer said. “He’s not pro-business. He’s Dr. No. Dr. No to everything, and that hurts families here in New Jersey.”

So what is Josh Gottheimer for ? In one word BAILOUTS!

At a September possible Democratic candidate Gottheimer fundraiser that came less than a week after James Cicconi, the RINO Republican head of external affairs at AT&T Inc., and JPMorgan Chase & Co.’s Peter Scher hosted another one for the Democrat.Attendees included executives from Blackstone, Comcast, Verizon, McGraw Hill, U.S. Telecom Association, Tribune Media, United Health, Ogilvy & Mather, Raben Group and Akin Group. The invitation for the event had said it was “an excellent opportunity to oust one of the most conservative members of the House of Representatives.”

Bloomberg News, which was the first to report plans for the Cicconi fundraiser, said some business executives had already been growing tired of Garrett. They were apparently bothered by his vote against big spending former Speaker John Boehner,and were troubled that he has opposed the crony driven , taxpayer funded corporate welfare,  Export-Import Bank.

Garret also strongly opposes bailouts and in 2010 said , “The American people are tired of the safety net that has been provided to Wall Street. They want to put an end to the continued bailouts, and the bill currently under consideration in the Senate fails to accomplish this task. Wall Street is not afraid of this bill – as a matter of fact, Goldman Sachs, the same bank that has been charged by the SEC with fraud — and which also happens to have been President Obama’s single largest corporate donor in 2008 — has endorsed much of it. Goldman supports the bill because they know that it gives them and others an advantage in the marketplace by allowing their shareholders and creditors to be bailed out if they get into trouble because of the risks they take. …. We must end the era of bailouts and stop rewarding banks like Goldman Sachs with regulation that fails to protect American taxpayers.”

This stand against corporate bailouts and industry sponsored Dodd Frank has made Garrett unpopular in certian parts of the business community . In 2011 Garrett issued a strongly worded statement on Dodd Frank and the institutionalized “too big to fail policy”  , “In the wake of the financial crisis of 2008, Democrats insisted that more regulation was the answer to our problems and that they had the right prescription to address the ailments of our financial system.  As it turns out, the 2,000 page bill they produced was not the right solution.  One year after it was signed into law, Dodd-Frank has done little to prevent another financial collapse, it has failed to streamline and simplify regulation, and it has actually codified ‘too big to fail’ and taxpayer bailouts into statute.  When the American people asked for limited government, less burdensome regulation, debt reduction and, most importantly, job creation, this was hardly the solution they had in mind.”

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The Fed Is Freaked Out about the Financial Markets

U

by LARRY KUDLOW
January 29, 2016 7:30 PM

Because it is completely misreading the situation. Early in the new year, on Sunday, January 3, Federal Reserve vice chair Stanley Fischer delivered a hawkish speech to the American Economic Association.

Completely misreading the economy, which is woefully weak while inflation is virtually nil, Fischer strongly hinted that the Fed would be raising its target rate by a quarter of a percent every quarter for the next three years.

The next day the S&P 500 dropped 1.5 percent. In the week that followed, the broad index fell 6 percent. The week after that it fell over 2 percent. During that two-week period, the Dow Jones dropped 1,437 points.

The dollar went up. Oil plunged 21 percent. Raw-material commodities dropped. And credit risk spreads in the high-yield junk market rose substantially. Actually, it was a global event, as stock markets around the world plunged. Utter chaos.

Read more at: https://www.nationalreview.com/article/430532/federal-reserve-and-stock-market

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Markets suffer their worst start to the year since Great Depression

market sell off

Marcus Leroux
Last updated at 12:01AM, January 16 2016

The start of this year has been the worst for financial markets since the onset of the Great Depression, with stock prices slumping around the world amid mounting concern over the situation in China.

A wave of selling has swept the world’s leading financial centres over the past two weeks, with the value of Britain’s leading companies falling by more than £110 billion since the start of the year.he year.

The FTSE 100 index of Britain’s biggest quoted companies fell 114 points, or 2 per cent, to 5,804 yesterday — the lowest close since November 2012. Indices in Europe and America have fared even worse: the Shanghai market was the worst performer, closing down 3.6 per cent, taking its total losses to 18 per cent for 2016. This was prompted by the price of a barrel of Brent crude dipping below the $30 mark, for the third time this week. In America the Dow Jones industrial average closed down 391 points, or 2.4 per cent, at 15,988.

The FTSE 100 index of Britain’s biggest quoted companies fell 114 points, or 2 per cent, to 5,804 yesterday — the lowest close since November 2012. In America the Dow Jones industrial average closed down 391 points, or 2.4 per cent, at 15,988.

The Shanghai market was the worst performer, closing down 3.6 per cent, taking its losses for the year so far to 18 per cent. This was prompted by the price of a barrel of Brent crude dipping below $30 for the third time this week.

David Buik, of Panmure Gordon, the investment bank, suggested that the “financial carnage” in stock markets in the first two weeks of the year was the worst since 1928.

https://www.thetimes.co.uk/tto/public/assetfinance/article4667135.ece

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Garrett Calls “Too-Big-To-Fail” a virus in our banking system and says Dodd-Frank increased the likelihood that taxpayers will be on the hook for additional Wall Street bailouts

bank-of-america_theridgewoodblog

 

January 16,2016

the staff of the Ridgewood blog

Ridgewood NJ, In November  Rep. Scott Garrett (NJ-05), Chairman of the Financial Services Subcommittee on Capital Markets and Government-Sponsored Enterprises, questioned Federal Reserve Chair Janet Yellen about the Fed’s use of cost/benefit analyses on new regulations. Chair Yellen testified before the House Financial Services Committee today and admitted to Rep. Garrett that the Fed has no plans to conduct an economic analysis that would determine the cumulative impact that hundreds of new rules prescribed by Dodd-Frank and the Basel Committee will have on the economy.

Garrett spoke earlier last year saying “ the Dodd-Frank Act was signed into law amidst promises that the legislation would protect American consumers, make our economy more competitive, and end ‘too big to fail.’ Instead, Dodd-Frank has stifled economic growth, made it more difficult for Main Street businesses to obtain credit, and increased the likelihood that taxpayers will be on the hook for additional Wall Street bailouts. Most importantly, this law has and has made it harder for Americans to find a job, buy a home, and save money for their family’s future.

“Despite creating new bureaucracies that have imposed thousands of pages of rigid, invasive, and unworkable regulations, Dodd-Frank did nothing to reform the mortgage giants Fannie Mae and Freddie Mac, whose actions caused the 2008 financial crisis. Now more than ever we need solutions that expand economic freedom and opportunities for hard-working American taxpayers. I look forward to working with my colleagues in order to protect our economy from the harsh reality of Dodd-Frank.”

“I believe we have a virus in our banking system that is stifling competition and innovation. It protects incompetent management and insulates antiquated business models from market discipline. It incentivizes the largest banks to grow even larger and makes these mega-banks captive to government influence. This “Too-Big-To-Fail” virus is now poised to spread beyond banks to other types of financial firms. Not surprising, it is the government that is preparing to label other financial firms “Too-Big-To-Fail” by designating them as systemically important and spreading these market distortions.

 

The Spectacular Too Big Failure of Dodd-Frank

Quick-to-fix regulation often creates unintended consequences
Dodd-Frank ultimately destroyed the community bank
Consumers lost choice and completion, although farmers were hurt most

By Edward Morrissey

February 12, 2015

Not much unites the activist Left and activist Right, and not much ever has. After the near-collapse of the fiscal sector in 2008, though, populist movements on both sides found momentum in opposition to government bailouts of private-sector firms, especially in the financial industry.

“Too big to fail” became a mantra used to leverage massive taxpayer bailouts of financial institutions. Those bailouts enraged conservatives who believed that government had largely created the “too big to fail” players that needed rescuing from bad government policy. At the same time, progressives angrily denounced the parachutes provided to Wall Street fat cats while ordinary Americans suffered through a period of tight lending and a poor economy — especially in the labor markets.

By the time 2010 rolled around, the two sides could agree on one thing: changes were necessary to unwind “too big to fail.” Conservatives wanted to push government out of lending and finance through tax and regulatory reforms that would end rent-seeking behaviors that perpetuated it. Progressives wanted more regulation and government intervention to force the industry to behave better.

Since Democrats controlled Congress and the White House in the spring and summer of 2010, they chose the progressive policy. Congress passed and President Barack Obama signed the Dodd–Frank Wall Street Reform and Consumer Protection Act in July of that year – not long after passing the progressive Affordable Care Act that created massive government intervention in the health-insurance industry.

For the past eighteen months, the news media has focused on the failures and incompetence of the Obama administration in the ACA’s rollout and infrastructure. The impact of Dodd-Frank has largely been ignored, until now. According to a new study by the Harvard Kennedy School of Business, the attempt to end Too Big to Fail backfired – in a big way.

One problem that led to TBTF was industry consolidation, which had been steadily reducing the number of smaller community banks that made lending much more accessible to small business owners, farmers, and middle and working-class families. Over the past twenty years, the share of US lending handled by community banks has fallen by half, from 41 percent to 22 percent, while the share handled by large banks more than doubled from 17 percent to 41 percent.

https://www.thefiscaltimes.com/Columns/2015/02/12/Spectacular-Way-Too-Big-Failure-Dodd-Frank

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The Year Nothing Worked: Stocks, Bonds, Cash Go Nowhere

Wall-Street

Lu Wang
December 28, 2015 — 12:00 AM ESTUpdated on December 28, 2015 — 10:32 AM EST

It’s the worst year for asset allocation funds since 1937
A 2.2% gain in the S&P 500 is roughly the best anyone could do

The idea behind asset allocation is simple: when one market struggles, it’s OK because an investor can jump into another that is thriving. Not so in 2015.

In fact, if you judge the past year by which U.S. investment class generated the largest return, a case can be made it was the worst for asset-allocating bulls in almost 80 years, according to data compiled by Bianco Research LLC and Bloomberg. With three days left in 2015, the Standard & Poor’s 500 Index gained 2.2 percent with dividends, cash is up less, while bonds and commodities show losses.

After embracing everything from Treasuries to high-yield bonds and technology shares amid seven years of zero-percent interest rates, investors found themselves with nowhere to run at a time when the Federal Reserve’s campaign of stimulus drew to an end. Normally it isn’t like this. Since 1995, practically every year has seen some asset deliver returns exceeding 10 percent.

“It’s been challenging from the point of view that the equity market and bond market are probably more joined at the hip than normal,” said Hayes Miller, the Boston-based head of multi-asset North America who helps oversee $35.8 billion for Baring Asset Management LLC. “We’ve had high cash exposure relative to norm because we felt cash provides one of the only good diversifiers against the risk-off trade.”

Bianco Research keeps track of the S&P 500, 30-year U.S. Treasury bonds, 3-month Treasury bills and the Thomson Reuters/CoreCommodity CRB Commodity Index to gauge performance in stocks, bonds, cash and commodities. The four are the most common asset classes considered by investors when an allocation strategy is designed, according to Jim Bianco, the founder.

 

https://www.bloomberg.com/news/articles/2015-12-28/the-year-nothing-worked-stocks-bonds-cash-go-nowhere-in-2015

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Wall Street fears that Americans are dead broke

101229_obama_golfing_ap_328

By Post Staff Report

November 13, 2015 | 11:52am

The American consumer appears to be tapped out.

Despite cheaper gas and interest-free car loans that stretch six years, auto sales in October posted a surprise decline, the Commerce Department said Friday — while retailers continued to post disappointing sales for the three months ended Oct. 31.

Wall Street, fearful that consumers are running out of cash heading into the crucial Christmas retail season, are selling off retail stocks and everything else sensitive to consumer spending.

The Dow Jones industrial average has fallen over 600 points, or 3.4 percent, over the last eight trading sessions. The S&P 500 is down 3.7 percent over the same span.

Overall, retail sales edged up 0.1 percent last month after being unchanged in September, Commerce reported. Economists had forecast sales increasing 0.3 percent.

Car sales fell 0.5 percent in October after rising 1.4 percent in September, according to Commerce.

“Admittedly, this is a not a great start to the fourth quarter, which is important as we head toward the holiday shopping season,” said Jennifer Lee, a senior economist at BMO Capital Markets in Toronto, told Reuters.

Late Thursday, Nordstrom reported profits and sales for the three months ended Oct. 31 that missed Wall Street forecasts. Its shares on Friday morning got clobbered, falling 17.9 percent, to $52.11. Its shares are down 33 percent this year.

Other chains on Friday morning were tumbling as the entire retail sector is coming under attack. JC Penney is down 16 percent, Kohl’s was down 7.3 percent and Macy’s is off 4.2 percent.

https://nypost.com/2015/11/13/wall-street-fears-that-americans-are-dead-broke/?utm_campaign=SocialFlow&utm_source=NYPFacebook&utm_medium=SocialFlow

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This Is the Worst U.S. Earnings Season Since 2009

wall-street-bull

Biggest quarterly drop since the aftermath of the financial crisis

This U.S. earnings season is on track to be the worst since 2009 as profits from oil & gas and commodity-related companies plummet.

So far, about three-quarters of the S&P 500 have reported results, with profits down 3.1 percent on a share-weighted basis, data compiled by Bloomberg shows. This would be the biggest quarterly drop in earnings since the third quarter 2009, and the second straight quarter of profit declines. Earnings growth turned negative for the first time in six years in the second quarter this year.

The damage is the biggest in commodity-related industries, with the energy sector showing a 54 percent drop in quarterly earnings per share so far in the quarter, with profits in the materials sector falling 15 percent.

The picture is brighter for the telecom services and consumer discretionary sectors, with EPS growth of 23 percent and 19 percent respectively so far this quarter.

When compared with analyst expectations, about 72 percent of companies have beaten profit forecasts. That’s only because the consensus has been sharply cut in the past few months, Jeanne Asseraf-Bitton, head of global cross-asset research at Lyxor Asset Management says in a telephone interview.

For the year as a whole, S&P 500 earnings are expected to fall 0.5 percent, data compiled by Bloomberg shows. For 2016, earnings growth is now seen at 7.9 percent, down from 10.9 percent in late July.

https://www.bloomberg.com/news/articles/2015-11-04/this-is-the-worst-u-s-earnings-season-since-2009