uh... gretchen morgenson
really in covering these financial issues
at the new york times that you know mail set off red so
uh... she writes about sequel so far
package he found that is very important part of the doubt frank felt that i did not get
a lot of coverage in the past
you know how they on president obama on guide erin every else's on arafat
i said to make the pills over
we pass legislation
say that if you screw up well we have the right
and ability in their power to break you up
now when i tell you when i saw that i said instead that doesn't mean you're going to
which would be a bit bility to which it did before anyway you pretend you did
so k but here's what you found in the bill
uh... most routers transactions are expected go through the clearing houses now that as
an outsider she explained
more transparency
of but
they will also be according to the bill quote
systematically
special statically important his systemically important
why is that matter we wide that way
as she explains quote
as such dot frank specifically provides
and now coronado even unusual are exige in circumstances
the federal reserve may provide such entities
with a financial backstop
including
borrow improvements
jornada
all the derivative trading go i have a clear as the clear answer systemically important
if there's any emergency the federal reserve
can give them whatever money they want
wallach even they've had to pay out
the clearing out overall
his what they why too big to fail
but you know she didn't wear this up again
get the second part of that trick
filling carp wanted
dummies we work
well how do we go ask congress for the money that became a huge issue
he became a huge political problem and people were mad about a minute their respect and
a billion that people in this case comes apart
no which is cool data from the federal aspirin
that the fed to sprints the money
sonic annable anybody
it's not elected by a uh... the voters
so if there are
unusual or exige in circumstances
was no time did happily without going up
who by the way karpf mark
even if the fairy tale of tim geithner turns up being true
and we get but you know
only cost us fifty billion dollars
that's not the problem anyway
how about that
trillion dollars but the fed to go toxic assets from the banks
how about that
she they faded out
they don't need the voters anymore digesting it through the fact
fade out the back door
the clearing houses you might be a little unclear who sits on the clearing house for
that would determine if it's as your circumstances
all the major banks in the car
uh...
of that crash that crash that crash
that's going to be spectacular
unfortunate
want one other small thing i can i wanna let a guy like you know i got
you understand why time of the crash in that regard i mean look at ibc p crash the at the
bailout to get more of our money leads to even bigger crash right
the route why this makes it more likely they will crack
because those dummy if there was a big guys on on the major banks that's on the border
clearinghouse
for director trading they're not dummies
they can read the law thought they were little protect it do you know what's in it
so they just got a free pass
they got out of the if we get out of jail karte
myself great so now if we crash
november that you're going to pick up that that
so everybody let's have an awesome thing as much rest as you like
because much money as you can in the short term
and of the crashes
unusual or exigent circumstances
plans
bring the money into the back
to guarantee