The Volcker Rule: Return to Sender

I think Wall Street knows it is running an elaborate check kiting scheme ... where the checks are actually hundreds of trillions of dollars of worthless derivatives. With a check kiting scheme, the best way to end it is a hold on the check, allowing all of the fraudulent instruments to catch up with there actual value ... zip. With derivatives the equivalent of a stop payment is any form of regulation that slows or interrupts the flow of the fraud. This is why whenever we hear some foreign minister in Europe or Asia threaten regulations on derivative trading Geithner hops on a plane to set the FM straight. But, even with the watering down of the Volcker rule, the biggest threat to this fraud is time. Ultimately something unexpected will occur in the global economy and the derivative train will come off the rails. It would be nice if we had Glass-Steagall in place to protect the bank accounts of small depositors, but the only leverage Wall Street has over the federal government is the threat to wipe out everyone. And since the rarefied domain of derivatives trading is reserved for the 1%, and they would have the most to lose in case the fraud comes apart ... they want to ensure that if they get wiped out, EVERYBODY gets wiped out.
Read the Article at HuffingtonPost