December 2009

What's Happening with the Wall Street Reform and Consumer Protection Act of 2009?

Today the House passed H.R. 4173: Wall Street Reform and Consumer Protection Act of 2009. The vote was 223 to 202 with 27 Democrats joining all of the Republicans in a no vote.

The actual bill is in the Congressional Record, with the latest Congressional actions (not real time).

Here is a list of amendments. The current House Roll Call vote is here.

The House allowed 36 amendments for debate, which severely limits the real number of amendments up for consideration. It appeared to be a strategic move to block the flurry of Republican amendments.

See this post on two amendments to gut the bill.

Four "Drive your Truck through it" Loopholes in Dervatives Reform

While we are still reading an analyzing what is in the final bill, Seeking Alpha has a great outline post on the lack of reform on derivatives and identifies four glaring loopholes.

The risk to our financial system must be eliminated, not simply regulated. We as Americans should not tolerate our system being put at risk. All OTC derivatives should clear through a Central Counterparty (CCP) with novation and daily margin, so that all swaps counterparties are forced to make good on their bets every day. In addition, all derivatives that can trade on a public exchange should trade on a public exchange so that regulators have real-time transparency and the ability to police these markets for fraud and manipulation.

Trade Deficit Decreased $2.8 billion, 7.6% from last month - Trade October 2009

The trade deficit for October 2009 was -$32.9 billion, down $2.8 billion from last month's deficit of $35.7 billion. The complete trade report is here.

Commerce, announced today that total October exports of $136.8 billion and imports of $169.8 billion resulted in a goods and services deficit of $32.9 billion, down from $35.7 billion in September, revised. October exports were $3.5 billion more than September exports of $133.4 billion. October imports were $0.7 billion more than September imports of $169.0 billion.

trade deficit Oct. 2009

This is some very good news for both imports and exports increased, it's simply that exports increased more. This adds to U.S. GDP.

In comparison to a year ago, exports are down 8.6% while imports are down 18.8%.

Taxpayers lose $61 Billion on AIG, auto bailouts

Despite whatever you might have heard about these bailouts being a good investment, the taxpayers lost money on this deal.

The Treasury Department is acknowledging for the first time that it lost $61 billion on two key programs designed to stabilize the economy after the largest financial crisis in decades.
The government is losing more than $30 billion on lifelines extended to insurance giant American International Group Inc., according to Treasury data released Wednesday in an audit by the Government Accountability Office. It also is losing more than $30 billion on rescues of struggling automakers Chrysler and General Motors.
Treasury says the losses are offset in part by profits earned from bank bailouts. It says the bank bailouts will net taxpayers $19.5 billion.

Must Read Posts - Sometimes you just can't say it better for 12.10.09

On The Economic Populist you might have noticed the middle column. We try to list other sites and blogs who have exceptional insight and writing on what is happening in the U.S. economy.

Sometimes though, one cannot say it better but miss those who did.

Must Read #1

A new research piece, by Asha G. Bangalore, Northern TrustGlobal Economic Research, states that just to maintain the current unemployment rate, the United States must create between 86,600 and 140,000 jobs per month. It's due to the average and then a slightly below average labor force growth rate of the last 20 years. So next time you see someone cheering that the U.S. only lost 11,000 jobs this month, consider these numbers. Also next time you see someone saying the United States should ignore immigration factors in the current labor market situation....think of these numbers.

Pages