My FDL | splashoil

splashoil commented on the blog post Trying to Take Health Care Out of the 2012 Election

2011-12-23 18:29:39View | Delete

There will actually be 51 plans. Congress and WH have their own health care plan to give them an alternative to the various state plans. Which do you think will be better? What could possibly go wrong?

splashoil commented on the blog post The Roundup for December 12, 2011

2011-12-13 10:21:40View | Delete

Here is another rehypothecation article:
http://brucekrasting.blogspot.com/2011/12/fed-mfg-and-reg-t.html

The rules on broker’s ability to A) Hypothecate and B) Re-hypothecate in the USA are spelled out in Reg T. This set of rules has been established by our good friends at the Federal Reserve Bank. Let me provide some telling words on this re Reg. T rule 15c3-3: (emphasis mine/Link)

• Except as otherwise agreed in writing by the OTC derivatives dealer and the counterparty, the dealer may repledge or otherwise use the collateral in its business;

• In the event of the OTC derivatives dealer’s failure, the counterparty will likely be considered an unsecured creditor of the dealer as to that collateral;

• The Securities Investor Protection Act of 1970 (15 U.S.C. 78aaa et seq.) does not protect the counterparty.

Well there you have it. Reg. T does permit the broker to “repledge” (AKA re-hypothecate). In the event of default by the broker, the counterparty will be considered an unsecured creditor. (AKA customers lose money). And SIPC provides zero protection to account holders in the event of a broker default.

splashoil commented on the blog post The Roundup for December 12, 2011

2011-12-13 07:33:38View | Delete

The Dealbook link is broken (MF Global), but I found this from CalculatedRisk:
http://www.youtube.com/watch?v=RAKsMnAM8vk
Ooops, wrong link. Try this:
http://www.calculatedriskblog.com/2011/12/mf-global-and-rehypothecation.html

By way of background, hypothecation is when a borrower pledges collateral to secure a debt. The borrower retains ownership of the collateral but is “hypothetically” controlled by the creditor, who has a right to seize possession if the borrower defaults.
…
Re-hypothecation occurs when a bank or broker re-uses collateral posted by clients, such as hedge funds, to back the broker’s own trades and borrowings. The practice of re-hypothecation runs into the trillions of dollars and is perfectly legal.
…
[I]n the UK, there is absolutely no statutory limit on the amount that can be re-hypothecated.
…
U.S. prime brokers have been making judicious use of European subsidiaries. Because re-hypothecation is so profitable for prime brokers, many prime brokerage agreements provide for a U.S. client’s assets to be transferred to the prime broker’s UK subsidiary to circumvent U.S. rehypothecation rules.

Under subtle brokerage contractual provisions, U.S. investors can find that their assets vanish from the U.S. and appear instead in the UK, despite contact with an ostensibly American organisation.

splashoil commented on the blog post Late Night FDL: The Bully Pulpit, At Last

2011-09-10 05:57:00View | Delete

Jobs Bill plan is financed by raising Medicare eligibility! Prime mendacity from Obama’s team.

splashoil commented on the blog post Number of Uninsured Up Again This Year

2011-09-07 09:42:40View | Delete

I’m adding this into the discussion from another thread. Try clicking on the links to figure your health care cost. Imagine if you wanted to start a small business or hire more employees and did not have to deal with the health insurance racket. This is real, and shows how retarded our discourse and action has been. Obama is a failure.

Living so close to the border, it is a shame and a pity to consider how retarded our health insurance racket is for most of us. No way for it ever to improve when the basic premise is flawed. Win the Future indeed.

Just a little reminder of how bamboozled and screwed we are here. I’m in Bellingham, WA 20 minutes from the border. Across the line, prescription drugs cost 1/3 to 1/4 of Stateside prices. Below are health care costs:

My friend in British Columbia, CANADA!, pays 60/month.
If you make nothing, you file a form and based on your pay, you get the help you need.

http://www.health.gov.bc.ca/….
“Effective January 1, 2011, monthly rates are $60.50 for one person, $109.00 for a family of two and $121.00 for a family of three or more.”

http://www.health.gov.bc.ca/….
1st Line = Adjusted Net Income
2nd Line = Subsidy Level
3rd Line = One Person
4th Line = Family of Two
5th Line = Family of Three or More

$0 – $22,000
100% premium assistance
$0.00
$0.00
$0.00

$22,001 – $24,000
80% premium assistance
$12.10
$21.80
$24.20

$24,001 – $26,000
60% premium assistance
$24.20
$43.60
$48.40

$26001 – $28,000
40% premium assistance
$36.30
$65.40
$72.60

$28,001 – $30,000
20% premium assistance
$48.40
$87.20
$96.80

Over $30,000
Full Rate
$60.50
$109.00
$121.00

——————-
So if you make over 30k/year, then you pay the regular.
The regular for
1 person is 60.50
2 people is 109
3 or more is 121.

SO A FING FAMILY OF 3 OR MORE PAYS 121 PER MONTH. OR $1452 PER YEAR!!!

I hope the example above will help some understand why the ACA will never solve the problem. It was a crime when Baucus and Obama arrested single payer advocates to keep it off the table!

splashoil commented on the blog post FHFA Files Suit Against 17 Banks

2011-09-04 07:22:31View | Delete

http://www.youtube.com/watch?v=ZXHckAFMzaw

Ry Cooder: