Dodd-Frank Is Now Officially A Dud

By Frank Holmes – Re-Blogged From http://www.Gold-Eagle.com

I often remind investors to look past the negative and find the positive. Last week provided no shortage of big splashy headline stories, from yet another high-profile personnel shakeup at the White House to a nail-biter special election in Pennsylvania’s 18th Congressional District, from Russia’s alleged nerve agent attack on a former double-agent spy to a tragic bridge collapse in Miami.

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The 5 Costliest Financial Regulations Of The Past 20 Years

By Frank Holmes – Re-Blogged From http://www.Gold-Eagle.com

Last year, the Federal Register—the U.S. government’s depository of rules and regulations—hit an all-time high of 81,640 pages. Among the industries that bear the greatest regulatory oversight is financials, which has seen a disproportionate amount of scrutiny in recent years, especially following the 9/11 attacks and subprime mortgage crisis.

Although I agree with the need to have and play by the rules, financial regulations have become so onerous that they render all but the largest firms noncompetitive. It’s a game whose rules are continually shifting, and there often seems to be more referees than players. A recent Thomson Reuters survey found that more than a third of all financial firms spend at least a whole work day every week tracking and analyzing regulatory changes. This is an obligation most companies simply can’t afford in the long term.

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The Case Of The Missing US Stocks

By Frank Holmes – Re-Blogged From http://www.Gold-Eagle.com

In the last 20 years, the U.S. stock market has undergone an alarming change that too few people are aware of or talking about. Between 1996 and 2016, the number of listed companies fell by half, from 7,300 to 3,600, according to a recent report by Credit Suisse. This occurred despite the U.S. economy growing nearly 60 percent over the same period.

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Stock Buy Backs Are Nay Votes

cropped-bob-shapiro.jpg   By Bob Shapiro

Stock prices change minute to minute based on investor perceptions and emotion. Investors compare the current price with current – and expected – earnings.

Over the longer term, it is earnings which will determine the trend of a stock’s price history. You would (correctly) expect that if Company A’s earnings rose by 25% a year for 10 years, while earnings for Company B fell by 25% a year, that the price of Company A stock would have gone up dramatically, while the stock of Company B would have fallen drastically.

One metric that investors use to compare the stock of different businesses is the PE Ratio – a simple division of the Price by the Earnings per Share (usually for the last 12 months). As optimistic investors put more money into a particular stock, the price goes up, and with it the PE Ratio also goes up.

Optimism implies that investors expect the future prospects for a business to be good. If business really is going to be good, you would expect the managers to try to put more capital to work. The business can get this capital in several ways.

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Killing Off Community Banks — Intended Consequence of Dodd-Frank?

By Ellen Brown – Re-Blogged From http://www.Silver-Phoenix500.com

The Dodd-Frank regulations are so lethal to community banks that some say the intent was to force them to sell out to the megabanks. Community banks are rapidly disappearing – except in North Dakota, where they are thriving.

At over 2,300 pages, the Dodd Frank Act is the longest and most complicated bill ever passed by the US legislature. It was supposed to end “too big to fail” and “bailouts,” and to “promote financial stability.” But Dodd-Frank’s “orderly liquidation authority” has replaced bailouts with bail-ins, meaning that in the event of insolvency, big banks are to recapitalize themselves with the savings of their creditors and depositors. The banks deemed too big are more than 30% bigger than before the Act was passed in 2010, and 80% bigger than before the banking crisis of 2008. The six largest US financial institutions now have assets of some $10 trillion, amounting to almost 60% of GDP; and they control nearly 50% of all bank deposits.

Meanwhile, their smaller competitors are struggling to survive. Community banks and credit unions are disappearing at the rate of one a day. Access to local banking services is disappearing along with them. Small and medium-size businesses – the ones that hire two-thirds of new employees – are having trouble getting loans; students are struggling with sky-high interest rates; homeowners have been replaced by hedge funds acting as absentee landlords; and bank fees are up, increasing the rolls of the unbanked and underbanked, and driving them into the predatory arms of payday lenders.

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White House looking to creep into 401(k)s

Last Monday, President Obama attacked Wall Street, again, for essentially helping in what the federal government and businesses can no longer provide — a decent retirement.

Under the false pretense of calling for new and tougher so-called fiduciary standards for financial brokers, advisers and retirement plan representatives, the White House once again horned in on Wall Street’s compensation formulas.

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