The Financial Landscape: Sovereign Debt Woes, QE3, and New Hedge Fund Regs

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Greek opposition leader Antonis SamarasFunding Fights: There's potential bad news for two governments trying to close budgetary gaps -- namely, those of the United State and Greece. The Wall Street Journal reports that Vice President Joe Biden's behind-the-scenes bipartisan deficit reduction talks "grew more contentious Wednesday as Democrats and Republicans became increasingly entrenched on key issues." The real purpose of the talks is to facilitate a vote on raising the debt ceiling before Aug. 2, which is when the Treasury says it will no longer be able to pay the country's bills.

In Greece, opposition leader Antonis Samaras (pictured) told the Financial Times he will not support Prime Minister George Papandreou's austerity measures, which are necessary preconditions for further support from the European Union. Compounding Greece's problems, the International Monetary Fund is holding back 12 billion euros in aid -- scheduled to have been paid within weeks -- saying the funds cannot go through until the EU agrees to pay its bailout money. Samaras, who leads the conservative New Democracy party, told the FT he agrees with the overall goal of eliminating the budget deficit, but wants to do it by stimulating the economy through tax cuts and reductions in employers' social insurance contributions. Eurozone finance ministers reject his proposals as insufficient and unrealistic. Default looms.

A QE2 Redo?:
Following Wednesday's grim appraisal of the state of the U.S. economy, Fed Chairman Ben Bernanke has indicated he is open to further monetary stimulus -- i.e., a third round of quantitative easing -- especially in the event of a disruptive event such as a default by Greece, which Bernanke says could "roil financial markets globally." QE2, which will end on June 30, has been deemed a mixed success, at best.

Getting a Handle on Hedge Funds: DealBook reports that the SEC will start to regulate hedge funds for the first time, requiring registration and disclosures from firms with more than $150 million under management. Such firms will have to "disclose the size of their funds and the type of clients who invest in them," as well as "name their 'gatekeepers' -- the auditors, prime brokers and marketers that service the funds." SEC Chair Mary L. Schapiro says these rules "will fill a key gap in the regulatory landscape." One former SEC counsel who is now a lawyer to investment advisers says the added rules "at the end of the day are not enormously onerous." The SEC was split 3-2 over whether to adopt the new requirements.

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dwight

Two Trillion Spent on Tarp, QE1 &2.. The devaluation of the dollar coupled with low interest rates have wipe out the savings and investment portfolios of millions of Americans. These are the one’s that worked and saved, paided their taxes and put their children thru college in an effort to give them a better life experience than they had..(The American Dream) What did they get for it? Their Children got indoctrinated in to socialism by the schools. They dumbed them down on the fundamental life skills, reading, writing, math and basic economics. The government has sponsored indoctrination of a whole generation of young people taught to feel guilty if they try to succeed and be successful..

The country itself is run by a bunch of narcissistic idiots both republican and democrats are to blame.. Their thirst for power and self enrichment has trumped any desire to serve the electorate..

There is a simple solution no one talks about. It requires basic math and common sense ..Get out your pencil and paper. If you are one of the lucky ones who got a quality education devoid of political indoctrination..

Using the principal of basic integrity and accountability let’s assume that instead of the government giving all these Trillions of Dollars to the same criminal felons that created this problem they simply did one thing..

They apologized to the American people..The Laborers, and the professionals for their failure to serve them.. THEN THEY CARRIED OUT THIS ACTION.. They refunded to each actively working tax paying American a portion of the 2 Trillion equivalent to their contribution ratio.. Consider the consequences of this action.. Those that originally caused this problem would be allowed and fail .. The criminals proscecuted.. Those millions of intelligent people out there who trusted the system would get to choose how to reinvest that money. Jobs would be created. The housing market would be saved. Banks would have to compete honestly for deposits and pay interest rates that retired Americans depend on ..The unemployment rate would decrease to a level equal to the percentage of illegal aliens in this country.. Just IMAGINE!! Letting the individual working tax paying American solve the problem.. Then of couse then why would be need government if they made common sense decisions like that???

Just remember if you are already indoctrinated this solution is already beyond your grasp to understand .. You have already been assimilated into the collective.. You cannot exercise free will and depend on other to make decisions for you… To Those Readers you have my SYMPATHY..

June 26 2011 at 1:15 PM Report abuse rate up rate down Reply
savemycountry911

gone's brain is really gone. He needs that Obamacare transplant more then ever.

June 25 2011 at 9:58 PM Report abuse rate up rate down Reply
1 reply to savemycountry911's comment
savemycountry911

gone is very confused. He calls others whack jobs when he is the whacky one.

June 25 2011 at 10:37 PM Report abuse -1 rate up rate down Reply
mrspelosi

I mowed down the financial landscape of America all due to my years of extreme, irresponsible, careless, out of control reckless spending. That's it in a nut shell.

June 24 2011 at 10:25 PM Report abuse +2 rate up rate down Reply
savemycountry911

This country is so s/c/r/e/w/e/d.

June 24 2011 at 9:45 PM Report abuse +1 rate up rate down Reply
frank1946

All The Kings Horses and All the King's Men Couldn't Put Humpty Dumpty Togethor Again !

Humpty's Time has Come ! Joe did not save your Butt, Humpty !

Mother would say, "You need to understand the meaning of the word "No" !

June 24 2011 at 1:16 AM Report abuse rate up rate down Reply
madddddddddddddd

HEDGE FUNDS R OUT OF CONTROL.. BUT OUR GOVT RUNNING THEM,,IS EVEN WORSE...............

June 23 2011 at 3:31 PM Report abuse +1 rate up rate down Reply