Everybody join in the Too-big-to-fail bandwagon!

According to a recent article published by Bloomberg, global regulators (whoever they may be) from the Financial Stability Board met in Basel, Switzerland to decide on a "framework for domestically systemically important banks" which should be up and going by next year. This would expand the list of financial institutions which, in case of failure, would pose risks to the stability of the domestic system, and therefore should be regulated. After we saw insurers (AIG) and  governmental mortgage associations (Fannie Mae, Freddie Mac) being bailed out in 2008, it is time to also regulate the so called shadow banks.

The $1.2 trillion deadline: 23 of November

We are approaching a big day, ladies and gentlemen. It is the 23rd of November when US budget committee will have to agree on budget cuts of at least $1.2 trillion dollars over the next decade. The 12 members of the committee, both Republican and Democrats, will have to decide on measures that would curb spending and increase the fiscal intake. While the US public debt recently crossed the $15 trillion yardstick, and the  $54.5 trillion total government debt which includes unfunded liabilities like Medicare, Medicaid and toxic mortgages still held at Freddie Mac and Fannie May still in full swing, it is business as usual in Washington.