finance bill almost done: lawmakers perceive precious metals as riskier

[SooperDave]

"...areas lawmakers perceived as riskier, including metals"

http://online.wsj.com/article/SB10001424052748703615104575328020013164184.html?m od=WSJ_hpp_LEADNewsCollection

[Elwar]

Some gold has been known to spontaneously combust....

[cswake]

That's an out-of-context quote.
Banks, however, would have to set up separately capitalized affiliates to trade derivatives in areas lawmakers perceived as riskier, including metals, energy swaps, and agriculture commodities, among other things.

Derivative financial instruments on precious metals pose risks to balance sheets.

[SooperDave]

That's an out-of-context quote.


I disagree, they obviously find derivatives IN METALS riskier than equities. Over time there's way more volatility in equities and they didn't mention them. So it's not an out of context quote.

[cswake]

Financial professionals consider futures (precious metals, agriculture, energy, etc) to be substantially more risky since they are obligations to buy or sell the asset rather than an option to. (Unlimited liability, higher leverage) For clarity, the "other things" in the language means financial products, such as foreign currencies and financial instruments.

[catdd]

Some gold has been known to spontaneously combust....

I spontaneously lol

[Travlyr]

Yea! This is either the ONE bill that will fix everything wrong with banking today... because our lawmakers worked themselves to exhaustion. Writing laws is hard work you know... :p

A panel of 43 lawmakers spent two weeks reconciling differences between a bill that passed the House in December and the Senate in May. They concluded their negotiations along party lines at a little after 5 a.m. ET in a Capitol Hill conference room marked by tension, levity and exhaustion. Senior administration officials, including Treasury Department Deputy Secretary Neal Wolin, arrived late in the afternoon to try and quell the feud between the New York delegation and Ms. Lincoln.

OR...it's all screwed up... "My guess is there are three unintended consequences on every page of this bill," Rep. Jeb Hensarling (R., Texas) said of the nearly 2,000-page bill.

Maybe... just maybe there isn't 6000 unintended consequences & they got it right! ~ "crossing my fingers" ~ :rolleyes:

[Kelly.]

Some gold has been known to spontaneously combust....

i heard it happened in ft knox awhile back :P