Soundings (8/31/10)

Posted by Stowe Talbot 
 
 

Flag Salute and Invocation by Aaron Lemperes

Visiting Rotarians:  Dave Snyder (Ontario Rotarian visiting all 50 states!), Peter Self

Guests:  Jerry Heller from Lynden, Kyle Jackson (Bryant's biz partner).

Trivia:  Rotary Grand Coulee club, 20 members, in District 5060.

Announcements:

Next week our DG Wayne Wiebe will be here to talk.

Reminder "Bucks for Baños" brunch/fundraiser on October 3rd, 11am at the Bellwether Ballroon.  We are doing this project jointly with Whatcom North Club and the Copan Rotary Club.  Need items for the auction and event sponsors!

 

Bucks in the Bay

  • Bill Gorman's son started school again paid for most of tuition on his own!
  • Phil X says Aloha, was in Kona last week, swam with the dolphins;
  • Lance Calloway had last summer event, soccer last week very successful!
  • Steve Spitzer congrats to his son who did touring for groups in Europe this summer;
  • Orphalee Smith was supposed to go to Waldron today (delayed due to weather), we should have rcvd our invoice for dues by Email;
  • Dannon got married!
  • John Sleeth for wedding anniversary;
  • Curtis Dye warns everyone that daughter now driving (silver Volvo in Ferndale) so be careful out there;
  • Art Runestrand missed meetings, kudos to Lance for pulling together such an enormous soccer event;
  • Jim Johnson back from long weekend in Minneapolis/St Paul, visited Minnesota State Fair;
  • Mimi for 38 years marriage to best bud John, and recommends cataract surgery;
  • Tim Krell thanks to Imhofs for IMCO office grand opening party last Friday;
  • Dr. Curt had story involving six yards of sand, recommends invoicing for events;

Sergeant at Arms by Matt Rose
Went to Idaho hung out with Shannon, could not buy a gun in Idaho! Fines for gender diversity, college football fans, Tresha for 007 BUG plates, John for his $117 record raffle income, WA State trivia.

Program
Bryant Engebretson talked about financial regulation and reform: FINREG.  Why reform?  Outgrowth of the financial crisis, and trying to correct some of the supposed causes of the crisis. 

Government will see its powers expand:  More regulation, creation of the Financial Stability Council, and the Fed role will be slightly reduced.  Banks will be on tighter leash: Volker Rule, derivitives will be more reported and transparent, and banks will have increased capital requirements and must spin off their derivitive trading.  For investors:

  • Banks must keep 5% of the credit card risk
  • Changes to credit rating firms
  • Hedge funds must register with the SEC
  • Changes to corporate goverance (executive pay and golden parachutes)
  • Changes to insurance
  • Changes to investment advice

Bryant believes gov't policy led to the problem encouraging the consumer to spend and the consumer's mistaken belief that real estate would always appreciate.  Unchecked securitization of debt/mortgages allowed too much money back into the system... creating a vicious, unsustainable cycle.

Recommends reading the Michael Lewis book "The Big Short", "The Quants" by Scott Patterson.  Don't read "The House of Cards". "No One Would Listen" is also interesting.

Respectfully submitted,
Stowe Talbot