The down spiral will continue in the financial and business world as a effect of the failure to intervene at the cause point of the problem. Intervention was directed by the Western world at financial entity bailout and not points of improvement for main street. China focused on business and not assistance only to the fat cats. As a result this business recovery will turn out to be a present of FASB only and not in any way a true economic phenomena.
Jim
Sen. Blanche Lincoln offered to modify her plan to limit swap trading by banks in return for assurances that at least some parts of her proposal will be included in the final financial reform bill. The new proposal would allow banks to trade and deal derivatives through separately capitalized affiliates, rather than spin off their derivatives businesses entirely. The proposal isn't entirely bank-friendly, however, as banks would still have to set aside billions of dollars to protect against losses in these affiliates.
Source: Banks get derivatives reprieve.
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