Senator Shelby: We Don't Need No Stinkin' Volcker Rules (Paraphrasing) [Video]

Bank stocks have done well the past 2 days, and it appears once more the stocks "know" as information in the back halls of D.C. is leaked out before the masses know.  It looks like the Paul Volcker rules could be dead even before they are arrive on Capital Hill.  Geez - I was hoping they would at least pass something to placate the peasant class, that had massive loopholes within it to please the oligarchs.  (a "win-win" situation) That way, I could have had a few things to talk about on the blog; but outright rejection?  Cmon Congress - give a dog a bone.

I don't think Senator Shelby "gets it" - the point is not that, for example proprietary trading "caused" this specific episode of crisis.  The point is we now have legal in-house institutions within our top few banks who can use the taxpayer backstop ("too big to fail") and nearly free money from the Fed (discount window!) to speculate at will.  Shelby claims a "strong regulator can handle this" i.e. that must be the "strong regulator" that completely missed the biggest bubble of all time?  Or was it the same "strong regulator" that had to bail out Long Term Capital Management a decade+ ago?  (arm twisting fellow investment banks into coughing up money along the way).  Yes that same "strong regulator" is clearly up to task, let us entrust them... after all the strong historical track record yells out that our "strong regulator" will protect the system.

Oh well, it was a nice thought for those few hours./ days .. obviously we upset "the market", which is a no no.   [Jan 27, 2010: Bloomberg - Financial Oligarchs Completely Stunned by "Volcker Rules"] I just love how Shelby said Volcker was looking at future problems... what a lame thing Mr Volcker.  Remember we are reactive, not proactive.  Our fire trucks are ready to strike not when the room is on fire, but only when the specific couch is on fire.  Front running future problems?  That is so unnecessary.

Go team oligarchy. 

Shelby on Volcker Rule (5 minute video)