Send a Tweet
Most Popular Choices
Share on Facebook Share on Twitter Share on LinkedIn Share on Reddit Tell A Friend Printer Friendly Page Save As Favorite View Favorites
OpEdNews Op Eds

Lincoln Amendment or Bust

By       Message Cenk Uygur       (Page 1 of 1 pages)     Permalink    (# of views)   No comments

Related Topic(s): ; ; ; ; ; , Add Tags
Add to My Group(s)

View Ratings | Rate It Headlined to H1 6/25/10

Author 3693
Become a Fan
  (38 fans)
- Advertisement -
It looks like the fate of financial reform will get decided on Friday. There have been so many ups and downs in this effort. We've lost so many battles over crucial parts of the bill. It was never that tough to begin with; there are issues with capitalization requirements; there isn't enough control of leverage; the Franken amendment reforming rating agencies should have never been removed. And the list goes on and on (though apparently we have had some recent victories as well).

Despite all of these losses, I'm ready to take half a loaf ... if - and this is a big if - we get to keep the Lincoln amendment on derivatives. It can't be watered down at all. It has to be the real deal. But if that is still in the bill then I think it would be worth voting for - and a real accomplishment for the Democrats.

I have always maintained that complex derivatives were the primary cause of the financial collapse. It's one thing for one bet to go wrong (the subprime market), it's another to have a hundred bets on top of that original bet all go wrong at the same time.

If the banks can't use depositor money as collateral for their betting and they don't get backed up by taxpayers on those bets, then they are free to win or lose them all they like. I have never cared how much profits or losses the banks had, as long as they didn't get the money from us.

I know the Lincoln amendment isn't perfect either and the rest of the bill doesn't have enough restrictions on derivatives (I would ban naked CDS's all together, like Europe is considering). But I'll take this as good starting point. At least the derivatives trading would be split off from taxpayer backed funds and deposits.

- Advertisement -

I'm afraid if we don't do real financial reform and in a hurry, we are almost certainly headed toward another economic catastrophe. And I'm not sure this bill alone would help us steer away from it. But if the Lincoln amendment passes at least we have fighting chance. Without it, the bill is a joke meant to placate you until the next collapse.

Watch The Young Turks Here

Follow Cenk Uygur on Twitter:
Follow The Young Turks on Facebook:

- Advertisement -


- Advertisement -

View Ratings | Rate It

Cenk Uygur is host of The Young Turks, the first ever live, daily web television talk show. The Young Turks are on XM Satellite Radio 8-9PM ET (XM 167, America Left) and on Sirius Left 146. The Young Turks is one of the Top 100 You Tube Partners, with over 18 million views a month on (more...)

Share on Google Plus Submit to Twitter Add this Page to Facebook! Share on LinkedIn Pin It! Add this Page to Fark! Submit to Reddit Submit to Stumble Upon Share Author on Social Media   Go To Commenting

The views expressed herein are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.

Writers Guidelines

Contact AuthorContact Author Contact EditorContact Editor Author PageView Authors' Articles

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

Fox News Comes Out of the Closet

Glenn Beck's Horrific Lie

Where Are the Tea Party Protests About Wall Street?

Who is More Conservative: Ronald Reagan or Barack Obama?

How the Rich Conduct Class Warfare

How to Regain Our Democracy