Capitalist Folk Hero Steve Eisman, the inspiration for a Hollywood film, predictions should be taken seriously by the readership of The Financial Times? He was just a canny player in the game of Casino that is Wall Street. Here is a link to a June 8, 2017 news story by
Headline: Bill to Erase Some Dodd-Frank Banking Rules Passes in House
‘WASHINGTON — The House approved legislation on Thursday to erase a number of core financial regulations put in place by the 2010 Dodd-Frank Act, as Republicans moved a step closer to delivering on their promises to eliminate rules that they claim have strangled small businesses and stagnated the economy.
The vote is a significant step for a measure that still faces long odds of becoming law because of the slim majority that Republicans hold in the Senate.
Even Wall Street lobbyists and lawyers were pessimistic about the chances of the bill, the Financial Choice Act.
“There is zero chance that the Choice Act survives” in its current form in the Senate, said Matthew Dyckman, a lawyer in the financial services practice at Goodwin.
Yet the bill’s passage in the House, by 233 to 186, keeps alive the Republican Party’s dream of unwinding one of President Barack Obama’s signature accomplishments. The vote quickly drew the ire of Democrats who argued that Republicans were giving a handout to Wall Street while putting everyday investors at risk.
Or this news story from The Atlantic of February 3, 2017 by Gillian B. White
Headline: Trump Begins to Chip Away at Banking Regulations
Sub-headline: Justifying his latest executive order, he said that “so many people, friends of mine, with nice businesses” had trouble getting loans.
Prior to a meeting with his economic advisory council on Friday morning, President Donald Trump held a briefing to set the agenda for it. “There’s nobody better to tell me about Dodd-Frank than Jamie,” Trump said, referring to 2010’s Dodd-Frank Act, the single most visible legislative consequence of the banking crisis, and also to J.P. Morgan’s CEO, Jamie Dimon, with whom he would later meet to discuss regulation. “We expect to be cutting a lot out of Dodd-Frank,” Trump said. “I have so many people, friends of mine, with nice businesses, they can’t borrow money, because the banks just won’t let them borrow because of the rules and regulations and Dodd-Frank.”
Hours later, as promised, the president issued a memorandum that sets in motion his plan to scale back the provisions of Dodd-Frank and repeal the upcoming fiduciary rule—the latest in his slate of executive orders aimed at decreasing regulations. Named for Senators Barney Frank and Chris Dodd, the bipartisan act—formally, it’s the Dodd–Frank Wall Street Reform and Consumer Protection Act—was responsible for creating more stringent rules regarding bank capitalization (that is, the amount of money that banks must have on hand), increasing compliance and reporting standards for banks, introducing stricter mortgage requirements, creating the Financial Stability Oversight Council (FSOC) and the Consumer Financial Protection Bureau (CFPB), and curbing excessive risk-taking and the existence of too-big-to-fail institutions on Wall Street.
Should the reader of the report on Mr. Eisman’s opinions on the present financial stability and its durability- is he is aware of the ‘The Financial Choice Act’? Will this bill meet the same political fate as the repeal of the ACA? Even with both houses of congress in Republican control, the Ryan/McConnell legislative team can’t pass that ‘Reform’ of the ACA i.e. The Heritage Foundation Health Care that evolved over political time. That Ryan/McConnell team, and their Tea Party Nihilist confederates, have no interest in governance, their raison d’être is perpetual obstructionism. In sum, this collection of dime store Robespierre’s are incapable of understand the imperative of governance. But the failed Free Market frame of ‘The Financial Choice Act’ appeals to their Social Darwinism, to dress it up considerably!
The stated aim of the legislation is:
To promote the financial stability of the United States by improving accountability and transparency in the financial system, to end “too big to fail”, to protect the American taxpayer by ending bailouts, to protect consumers from abusive financial services practices, and for other purposes.
Then their is Paul Ryan’s tough stand on ‘Financial Reform’ , as even more vital than the ACA Repeal, as reported in The Financial Times:
Headline: Donald Trump’s rift with Republicans widens
Sub-headline: Ryan says tax reform ‘absolutely critical’ but president seeks return to healthcare battle
The Republicans can’t pass ‘Health Care Reform’ but they can pass ‘Economic Reform’ framed as the ‘Financial Choice Act’. ‘The Free Market’ must be set free from the constraints of the Neo-Liberal Dodd-Frank! This Party Line, in an different time and key was the rationalization that led to the Depression of 2008, and the dismal political present and its Dear Leader Trump. Mr. Eisman’s investment acumen, in the past, has served him well, but his comments on a probabilistic economic stability lacks evidentiary corroboration, to say the least. Put simply, he needs to be become more curious, that might just lead him to be better informed!