Editor's Note: This is a monthly publication on economic trends and financial policy issues. In this publication you can read "The Longbrake Letter", an analysis of economic trends and conditions written by Bill Longbrake, as well as commentary on financial regulation and policy written by members of the law firm Barnett, Sivon & Natter, P.C., a Washington, DC based law firm that specializes in financial services law.

ISSUE: #06, October 2010

The Longbrake Letter
- Bill Longbrake
Three topics are covered in this month's Longbrake Letter.  First, public policy is not effectively addressing stagnation in inflation-adjusted income, worsening income inequality.  Americans are angry and deeply troubled and politicians seem to have few, if any, answers.  Second, stock prices are rising, while many firms remain mired in recession. This may reflect an unprecedented and potentially troublesome divergence between small and large firms.  Third, national self-interest is fostering incipient currency and trade wars with worrisome implications for long-term global growth and political harmony.

To Guarantee or Not to Guarantee – That is the Question
- Jim Sivon
Jim Sivon discusses the case for and against a limited federal guarantee on mortgage securities.

Systemically Significant Financial Companies: Do the Standards Make Sense?
- Raymond Natter
The Financial Stability Oversight Council has begun the process of establishing the rules for selecting the systemically significant financial companies.  The Council is directed to consider 10 factors, but how many of these factors actually relate to systemic significance?  This article points out that most of the factors are not relevant, and suggests that the Council essentially make its determination on a much narrower basis.

The Appointment of a Director of the Bureau of Consumer Financial Protection
- Bob Barnett
The Bureau of Consumer Financial Protection is without a Director. Does this mean that federal consumer laws soon may lack federal enforcement and supervision?