Re: Feds wave regulations so banks can pump up their Wall Street operations

On Aug 28, 8:10 pm, Winston_Smith <not_r...@xxxxxxxxx> wrote:
http://money.cnn.com/2007/08/24/magazines/fortune/eavis_citigroup.for...
Fed bends rules to help two big banks

http://articles.moneycentral.msn.com/Investing/ContrarianChronicles/H...
How regulators fed the credit mess

Obscure accounting rules approved last year made it easier for
over-leveraged financial institutions to get ever more creative and
cover up shaky numbers.

Essentially, the accounting conventions in this country have devolved
to the point where financial statements for financial institutions are
worse than useless. Allowing this nonsense to pass for an honest
assessment of reality has created the credit predicament we're in now
-- which has caused the Fed to ride to the rescue -- just weeks off
the stock market's high and with the market still up on the year.

http://business.timesonline.co.uk/tol/business/economics/article23440...
Wall Street suffered a fresh blow last night as it emerged that the
Federal Reserve foresaw the risk of a credit crunch at its most recent
meeting but chose not to signal that it was willing to cut its main
interest rate.

At its meeting on August 7, the Federal Open Markets Committee
expected that markets would return to normal, minutes showed last
night. However, the committee also said that a further deterioration
in financial conditions 'could not be ruled out' and if that damaged
prospects for growth, it 'might require a policy response'.

Nine days later, the committee cut its discount rate for direct
borrowing, saying that its chief concern was now over the outlook for
growth.

Housing would prove a drag on US growth 'for some time and represented
a significant downside risk to the economic outlook', the minutes
read. Yet, in a hawkish comment, the Fed argued that a lull in
inflation was probably caused by "transitory factors".

Ryan Larson, a senior trader with Voyageur Asset Management, said:
"They have already assured they stand ready to do something. But the
market was looking for more of a nod or a mention toward the credit
problems - and I don't think they got it."

http://money.cnn.com/2007/08/27/news/economy/temp_workers/index.htm?p...
Temp hiring falls for 6th straight month

Trend raises concern because last significant decline in temporary
hires preceded a major drop in overall employment, according to a news
report.

Makes you wonder how many on this discussion group could pay the
mortgage without a job.

TMT

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