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“The FSOC’s decision to expand the too-big-to-fail designation to nonbank firms will be seen as the most damaging action taken under Dodd-Frank”

Instead of going away, “Too Big To Fail” is expanding:

 

It was no surprise that the Financial Stability Oversight Council (FSOC) decided last week to cite a number of nonbank firms as systemically significant, placing them in line for greater regulatory scrutiny by the Federal Reserve. What was a surprise is that — in the midst of a huge outcry in Congress about banks that are too big to fail (TBTF) — neither Congress nor the administration asked the FSOC to stop the designation process until the too-big-to-fail issue had been fully thought through. After all, by designating some nonbanks firms as TBTF — GE Capital, AIG, and Prudential Insurance are in the group — the FSOC has created a whole new set of institutions that will now be considered TBTF. [via The American]

 

America move from entrepreneurial capitalism to state crony capitalism continues step-by-step.

IMO, companies that are “too-big-to-fail” need to be broken up.

 

 

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Time for a Theme Song for the “Financial Cliff”

My choice is “Ship of Fools” by World Party:

I’ve used it before.

Idea for Avoiding the Fiscal Cliff: 4 X 4 X 4

How about this idea for 4 year plan:

  • 4% across the board income tax surcharge for all taxpayers regardless of income bracket
  • 4% across the board reduction in real spending (not projected increases in funding) for year one
  • In each subsequent year, total real spending has to decrease an additional 4% (it doesn’t have to be 4% across the board though)
  • At the end of 4 years, the income tax surcharge expires automatically
  • If in any year, total real spending doesn’t decrease 4%, the Income Tax surcharge is suspended
  • If in any year, total real spending doesn’t decrease by 4% the permanent base pay of members of congress, congressional political staffers, POTUS, VPOTUS, and executive branch political staffers decreases by 4%

Its better then the cliff. Also a “4 year” plan sounds like a “5 year” plan so the lefties should like that. I think Instapundit’s  ideas should be included as well.

Call it the Purpleslog 4 x4 x 4 Plan.

 

Keep the Dollar Bill, Ditch the Penny

This, not this.

I like the idea of Lincoln Nickles.

http://coinauctionshelp.com/TPGS_FORUM/phpBB3/download/file.php?id=1251&mode=view

Amen to This: “it’s important it’s seen as a socially desirable thing to be an entrepreneur”

Quoting Elon Musk via Next Big Future. Read it.

Anti-Spam Lawfare

It sounds like some Computer Scientists…

A team of computer scientists at two University of California campuses has been looking deeply into the nature of spam, and they think found a ‘choke point’ [PDF] that could greatly reduce the flow of spam…If a handful of companies like these refused to authorize online credit card payments to the merchants, ‘you’d cut off the money that supports the entire spam enterprise,’ said one of the scientists. [Link]

…has caught up to my thinking…

Often much of the cost of an information security incident falls not onto the party that is responsible for providing the Security but onto third parties. While the enterprise/individual that has the incident may incur costs, much of the cost of this InfoSec externality is put onto others (organizations/individuals/taxpayers).

What is lacking is proper incentives. By incentives I do not mean government regulations or criminal statutes.

I mean money. Getting money is a good incentive. Avoiding loosing money is a good incentive. Not having your Balance Sheet, Income Statement, and Cash Flow Statement be effected by information security loss is a good incentive.

What is needed is Information Security Lawfare.

If an organization or individual deploys information technology in such a way that normal best practices are not followed (read: Duty of Care) and is subsequently used as part of an information security incident, those effected by that information Security incident should sue for a Tort Remedy.[link]

Why leave Lawfare just to the bad guys?

Message from the Fed: Bend over, here it comes Proles! (On the Bailout Series)

My fellow Americans, prepare to get fucked again.

Bad news from the Federal Reserve.

01. Quantitative Easing is DC newspeak for increasing the money supply big time.

02. This type of monetary action has the effect of causing Inflation.

03. Yes, my follow Moorlocks, the Fed wants to ramp inflation up.

04. They don’t have the balls to say so.

05. And they waited until after the election, so those of us who do…well fuck us there is nothing we can do about it.

…anyways..

06. Inflation sucks.

07. Inflation devalues your debt.

08. Inflation devalues your savings.

…in other words…

09. Inflation rewards bad economic behavior and punishes good economic behavior

10. Inflation-as-policy is a way for the Political Class to deal with the Debt issue that protects them and their fellow elites and Big Gov types (both here and abroad), saves those who made really bad economic decisions, and punished everybody else.

11.  I was never one of those who wanted to alter or dismantle the Fed. No longer. My mind is a clean slate on this issue. The Fed is was supposed to be about fighting inflation. Now that they have dropped that duty by their actions, what should the next/future US Central Bank Systems look like (properties to include simplicity, transparency, mission focus, smaller-size)?

Listen to World Party’s Ship of Fools – Purpleslog’s chosen financial debacle theme song