Wall Street’s excited about the prospect of a new regulatory agency along the lines of the Resolution Trust Co. of the 1980s, which helped nearly 800 insolvent savings and loans gradually sell off their mortgages.
We’re getting quite close to the Mercury retrograde of Sept. 23. Things announced under a Merc retrograde often don’t come to pass or the terms of the deal change significantly. So, though my financial advice is for entertainment purposes only, view any rally on Wall Street right now as an exit opportunity.
There’s a full Moon at 21 Taurus on Nov. 13 that falls on the New York Stock Exchange Sun. The full Moon (Taurus/Scorpio) squares nebulous Neptune and the North Node. If this isn’t the evaporation of wealth (Taurus), I don’t know what is.
Interesting that an RTC-type agency is being considered by our Republican Administration. I thought the Republicans were the party that promised to “get government off our backs.” Clearly, when those in need are banks and brokerages on Wall Street, the GOP has no problem having Uncle Sam play sugar daddy.
Let’s see how the government reacts when this credit crisis trickles down and lots of folks can’t make their student loan payments because they’ve lost their job in a depression. Will the party in power be feeling so generous then?
Evidently, I’m not the only who’s thinking about these things. Check out Jim Moore at Huffington Post on the Republicans turned socialists.
I don’t expect our government to stand idly by and let the financial system melt down. But if bailouts for Bear Stearns, Fannie Mae, Freddie Mac, AIG, and possibly others are the “carrot,” where is the stick? How about some regulations on banking industry interest rates and fees in exchange for the government largesse?
Case in point: The other day I went to a McDonald’s to use the ATM because I know the ones there only charge 99 cents. When I went online later that day and saw the $100.99 deduction on my bank account, I noticed there was also a $2 fee that went to the Actors Credit Union, which operates the ATMs in several Manhattan McDonald’s.
What was the $2 charge for? For looking at my balance on the screen in the McDonald’s before I made the withdrawal! At no point when I asked to see my balance was I told that I was going to be charged for it and that I was going to pay twice the fee assessed for withdrawing money. This is ridiculous, folks!
My other thought about the creation of a neo-RTC: It might not be good for the McCain campaign. Why? Because there are a lot of folks out there not old enough or too old to remember that John McCain was involved in a scandal involving an S&L called Lincoln Savings & Loan, which was run by Charles Keating.
Five U.S. Senators were accused of “improperly aiding” Keating, according to the Wiki. One of them was John McCain. The Arizona senator was ultimately “cleared of impropriety but criticized for poor judgment.”
Of course, I wouldn’t want to be reminded of all the mistakes I made in the 1980s, but then I’m not running for President either.
Just to put in a plug for my favorite market maven (I promise you I’m not on his payroll and I know for a fact that he can’t buy into astrology): I was surfing yesterday using the keyword “bailout” and discovered that Barry Ritholtz has a new book coming out called The Bailout Nation: How Easy Money Corrupted Wall Street and Shook the World Economy. Talk about prescient!
Now, if only the rest of us bloggers can turn our daily musings into a potential best-seller!