there is 2 year limit in place,(the law passed by Obama) so that there is not a daily run on deposits when data becomes available as obviously any recession does not last more than 2 years..
The core problem which Obama failed to understand is that these financial firms used uncoupled securities to pad their short term profits while at the same time increasing their long term risks to way beyond the capital they had.
The uncoupled securities now do not just include derivatives
but also commodity contracts as exchanges no longer have the limits in place of having actual products to enter into those contracts..
> The core problem which Obama failed to understand
Assumes facts not in evidence.
Suppose, for the sake of argument, that you think that Bush intended the likely outcomes of what he did and that you think that Obama is smarter than Bush. Doesn't it follow that Obama intends the likely outcomes of what he does?
Note that Obama had a filibuster-proof majority in the Senate and a majority in the house. He still has a majority in the Senate.
Given a choice between blaming incompetence and blaming intent, why should I think that Obama is the former?
re: "The uncoupled securities now do not just include derivatives but also commodity contracts as exchanges no longer have the limits in place of having actual products to enter into those contracts." This is a subject of great debate among commodity followers, including silver and gold. See many, many discussions regarding the CFTC rules (or lack of same) around "naked" short positions--a method whereby huge banking institutions can create a false "demand" and reduce the price. Lately, it appears, (Though not verified.) that there isn't enough silver to actually meet the contracts held by people or institutions who want actual delivery. In the past, the speculators and huge banks would exit the fray before it became time to actually deliver the goods. However, rumor has it that the actual supply of real silver is so tight and the buyers (the longs) are sticking to the end, that the shorts cannot find metal to deliver and are paying off in cash. (at, of course, a premium) Its fun to watch -- harveyorgan.blogspot.com/ being one of many places. Another source is zerohedge.com. I am only touching on a much larger drama, but it looks like this is one place where the bankers are taking a hit.
The core problem which Obama failed to understand is that these financial firms used uncoupled securities to pad their short term profits while at the same time increasing their long term risks to way beyond the capital they had.
The uncoupled securities now do not just include derivatives but also commodity contracts as exchanges no longer have the limits in place of having actual products to enter into those contracts..
Translation: They eff'd us over..