AN AVERAGE DAY FOR DATA

August 4, 2017


I am sure you have heard the phrase “big data” and possibly wondered just what that terminology relates to.  Let’s get the “official” definition, as follows:

The amount of data that’s being created and stored on a global level is almost inconceivable, and it just keeps growing. That means there’s even more potential to glean key insights from business information – yet only a small percentage of data is actually analyzed. What does that mean for businesses? How can they make better use of the raw information that flows into their organizations every day?

The concept gained momentum in the early 2000s when industry analyst Doug Laney articulated the now-mainstream definition of big data as the four plus complexity:

  • Organizations collect data from a variety of sources, including business transactions, social media and information from sensor or machine-to-machine data. In the past, storing it would’ve been a problem – but new technologies (such as Hadoop) have eased the burden.
  • Data streams in at an unprecedented speed and must be dealt with in a timely manner. RFID tags, sensors and smart metering are driving the need to deal with torrents of data in near-real time.
  • Data comes in all types of formats – from structured, numeric data in traditional databases to unstructured text documents, email, video, audio, stock ticker data and financial transactions.
  • In addition to the increasing velocities and varieties of data, data flows can be highly inconsistent with periodic peaks. Is something trending in social media? Daily, seasonal and event-triggered peak data loads can be challenging to manage. Even more so with unstructured data.
  • Today’s data comes from multiple sources, which makes it difficult to link, match, cleanse and transform data across systems. However, it’s necessary to connect and correlate relationships, hierarchies and multiple data linkages or your data can quickly spiral out of control.

AN AVERAGE DAY IN THE LIFE OF BIG DATA:

I picture is worth a thousand words but let us now quantify, on a daily basis, what we mean by big data.

  • U-Tube’s viewers are watching a billion (1,000,000,000) hours of videos each day.
  • We perform over forty thousand (40,000) searches per second on Google alone. That is approximately three and one-half (3.5) billion searches per day and roughly one point two (1.2) trillion searches per year, world-wide.
  • Five years ago, IBM estimated two point five (2.5) exabytes (2.5 billion gigabytes of data generated every day. It has grown since then.
  • The number of e-mail sent per day is around 269 billion. That is about seventy-four (74) trillion e-mails per year. Globally, the data stored in data centers will quintuple by 2020 to reach 915 exabytes.  This is up 5.3-fold with a compound annual growth rate (CAGR) of forty percent (40%) from 171 exabytes in 2015.
  • On average, an autonomous car will churn out 4 TB of data per day, when factoring in cameras, radar, sonar, GPS and LIDAR. That is just for one hour per day.  Every autonomous car will generate the data equivalent to almost 3,000 people.
  • By 2024, mobile networks will see machine-to-machine (M2M) connections jump ten-fold to 2.3 billion from 250 million in 2014, this is according to Machina Research.
  • The data collected by BMW’s current fleet of 40 prototype autonomous care during a single test session would fill the equivalent stack of CDs 60 miles high.

We have become a world that lives “by the numbers” and I’m not too sure that’s altogether troubling.  At no time in our history have we had access to data that informs, miss-informs, directs, challenges, etc etc as we have at this time.  How we use that data makes all the difference in our daily lives.  I have a great friend named Joe McGuinness. His favorite expressions: “It’s about time we learn to separate the fly s_____t from the pepper.  If we apply this phrase to big data, he may just be correct. Be careful out there.


Portions of the following post were taken from an article by Rob Spiegel publishing through Design News Daily.

Two former Apple design engineers – Anna Katrina Shedletsky and Samuel Weiss have leveraged machine learning to help brand owners improve their manufacturing lines. The company, Instrumental , uses artificial intelligence (AI) to identify and fix problems with the goal of helping clients ship on time. The AI system consists of camera-equipped inspection stations that allow brand owners to remotely manage product lines at their contact manufacturing facilities with the purpose of maximizing up-time, quality and speed. Their digital photo is shown as follows:

Shedletsky and Weiss took what they learned from years of working with Apple contract manufacturers and put it into AI software.

“The experience with Apple opened our eyes to what was possible. We wanted to build artificial intelligence for manufacturing. The technology had been proven in other industries and could be applied to the manufacturing industry,   it’s part of the evolution of what is happening in manufacturing. The product we offer today solves a very specific need, but it also works toward overall intelligence in manufacturing.”

Shedletsky spent six (6) years working at Apple prior to founding Instrumental with fellow Apple alum, Weiss, who serves Instrumental’s CTO (Chief Technical Officer).  The two took their experience in solving manufacturing problems and created the AI fix. “After spending hundreds of days at manufacturers responsible for millions of Apple products, we gained a deep understanding of the inefficiencies in the new-product development process,” said Shedletsky. “There’s no going back, robotics and automation have already changed manufacturing. Intelligence like the kind we are building will change it again. We can radically improve how companies make products.”

There are number examples of big and small companies with problems that prevent them from shipping products on time. Delays are expensive and can cause the loss of a sale. One day of delay at a start-up could cost $10,000 in sales. For a large company, the cost could be millions. “There are hundreds of issues that need to be found and solved. They are difficult and they have to be solved one at a time,” said Shedletsky. “You can get on a plane, go to a factory and look at failure analysis so you can see why you have problems. Or, you can reduce the amount of time needed to identify and fix the problems by analyzing them remotely, using a combo of hardware and software.”

Instrumental combines hardware and software that takes images of each unit at key states of assembly on the line. The system then makes those images remotely searchable and comparable in order for the brand owner to learn and react to assembly line data. Engineers can then take action on issues. “The station goes onto the assembly line in China,” said Shedletsky. “We get the data into the cloud to discover issues the contract manufacturer doesn’t know they have. With the data, you can do failure analysis and reduced the time it takes to find an issue and correct it.”

WHAT IS AI:

Artificial intelligence (AI) is intelligence exhibited by machines.  In computer science, the field of AI research defines itself as the study of “intelligent agents“: any device that perceives its environment and takes actions that maximize its chance of success at some goal.   Colloquially, the term “artificial intelligence” is applied when a machine mimics “cognitive” functions that humans associate with other human minds, such as “learning” and “problem solving”.

As machines become increasingly capable, mental facilities once thought to require intelligence are removed from the definition. For instance, optical character recognition is no longer perceived as an example of “artificial intelligence”, having become a routine technology.  Capabilities currently classified as AI include successfully understanding human speech,  competing at a high level in strategic game systems (such as chess and Go), autonomous cars, intelligent routing in content delivery networks, military simulations, and interpreting complex data.

FUTURE:

Some would have you believe that AI IS the future and we will succumb to the “Rise of the Machines”.  I’m not so melodramatic.  I feel AI has progressed and will progress to the point where great time saving and reduction in labor may be realized.   Anna Katrina Shedletsky and Samuel Weiss realize the potential and feel there will be no going back from this disruptive technology.   Moving AI to the factory floor will produce great benefits to manufacturing and other commercial enterprises.   There is also a significant possibility that job creation will occur as a result.  All is not doom and gloom.

CLOUD COMPUTING

May 20, 2017


OK, you have heard the term over and over again but, just what is cloud computing? Simply put, cloud computing is the delivery of computing services—servers, storage, databases, networking, software, analytics, and more—over the Internet (“the cloud”). Companies offering these computing services are called cloud providers and typically charge for cloud computing services based on usage, similar to how you’re billed for water or electricity at home. It is a type of Internet-based computing that provides shared computer processing resources and data to computers and other devices on demand. It is a model for enabling ubiquitous, on-demand access to a shared pool of configurable computing resources (e.g., computer networks, servers, storage, applications and services), which can be rapidly provisioned and released with minimal management effort. Cloud computing and storage solutions provide users and enterprises with various capabilities to store and process their data in either privately owned, or third-party data centers that may be located far from the user–ranging in distance from across a city to across the world. Cloud computing relies on sharing of resources to achieve coherence and economy of scale, similar to a utility (like the electricity grid) over an electricity network.

ADVANTAGES AND DISADVANTAGES:

Any new technology has an upside and downside. There are obviously advantages and disadvantages when using the cloud.  Let’s take a look.

 Advantages

  • Lower cost for desktop clients since the applications are running in the cloud. This means clients with smaller hard drive requirements and possibly even no CD or DVD drives.
  • Peak computing needs of a business can be off loaded into cloud applications saving the funds normally used for additional in-house servers.
  • Lower maintenance costs. This includes both hardware and software cost reductions since client machine requirements are much lower cost and software purchase costs are being eliminated altogether for applications running in the cloud.
  • Automatic application software updates for applications in the cloud. This is another maintenance savings.
  • Vastly increased computing power availability. The scalability of the server farm provides this advantage.
  • The scalability of virtual storage provides unlimited storage capacity.

 Disadvantages

  • Requires an “always on” Internet connection.
  • There are clearly concerns with data security. e.g. questions like: “If I can get to my data using a web browser, who else can?”
  • Concerns for loss of data.
  • Reliability. Service interruptions are rare but can happen. Google has already had an outage.

MAJOR CLOUD SERVICE PROVIDERS:

The following names are very recognizable.  Everyone know the “open-market” cloud service providers.

  • AMAZON
  • SALESFORCE
  • GOOGLE
  • IBM
  • MICROSOFT
  • SUN MICROSYSTEMS
  • ORACLE
  • AT & T

PRIVATE CLOUD SERVICE PROVIDERS:

With all the interest in cloud computing as a service, there is also an emerging concept of private clouds. It is a bit reminiscent of the early days of the Internet and the importing that technology into the enterprise as intranets. The concerns for security and reliability outside corporate control are very real and troublesome aspects of the otherwise attractive technology of cloud computing services. The IT world has not forgotten about the eight hour down time of the Amazon S3 cloud server on July, 20, 2008. A private cloud means that the technology must be bought, built and managed within the corporation. A company will be purchasing cloud technology usable inside the enterprise for development of cloud applications having the flexibility of running on the private cloud or outside on the public clouds? This “hybrid environment” is in fact the direction that some believe the enterprise community will be going and some of the products that support this approach are listed below.

  • Elastra (http://www.elastra.com ) is developing a server that can be used as a private cloud in a data center. Tools are available to design applications that will run in both private and public clouds.
  • 3Tetra (http://www.3tetra.com ) is developing a grid operating system called ParaScale that will aggregate disk storage.
  • Cassatt(http://www.cassatt.com )will be offering technology that can be used for resource pooling.
  • Ncomputing ( http://www.ncomputing.com ) has developed standard desktop PC virtualization software system that allows up to 30 users to use the same PC system with their own keyboard, monitor and mouse. Strong claims are made about savings on PC costs, IT complexity and power consumption by customers in government, industry and education communities.

CONCLUSION:

OK, clear as mud—right?  For me, the biggest misconception is the terminology itself—the cloud.   The word “cloud” seems to imply a IT system in the sky.  The exact opposite is the case.  The cloud is an earth-based IT system serving as a universal host.  A network of computers. A network of servers.  No cloud.


I know I’m spoiled.  I like to know that when I get behind the wheel, put the key in the ignition, start my vehicle, pull out of the driveway, etc. I can get to my destination without mechanical issues.  I think we all are basically there.  Now, to do that, you have to maintain your “ride”.  I have a 1999 Toyota Pre-runner with 308,000 plus miles. Every three thousand miles I have it serviced.  Too much you say?  Well, I do have 308K and it’s still humming like a Singer Sewing Machine.

Mr. Charles Murry has been following the automotive industry for over thirty years.  Mr. Murry is also a senior editor for Design News Daily Magazine.  Much of the information below results from his recent post on the TEN MOST UNRELIABLE VEHICLES.  Each year Consumer Reports receives over one-half million consumer surveys on reliability information relative to the vehicles they drive.  The story is not always not a good one.  Let’s take a look at what CU readers consider the must unreliable vehicles and why.

Please keep in mind this is a CU report based upon feedback from vehicle owners.  Please do not shoot the messenger.  As always, I welcome your comments and hope this help your buying research.

THE NEXT FIVE (5) YEARS

February 15, 2017


As you well know, there are many projections relative to economies, stock market, sports teams, entertainment, politics, technology, etc.   People the world over have given their projections for what might happen in 2017.  The world of computing technology is absolutely no different.  Certain information for this post is taken from the publication “COMPUTER.org/computer” web site.  These guys are pretty good at projections and have been correct multiple times over the past two decades.  They take their information from the IEEE.

The IEEE Computer Society is the world’s leading membership organization dedicated to computer science and technology. Serving more than 60,000 members, the IEEE Computer Society is the trusted information, networking, and career-development source for a global community of technology leaders that includes researchers, educators, software engineers, IT professionals, employers, and students.  In addition to conferences and publishing, the IEEE Computer Society is a leader in professional education and training, and has forged development and provider partnerships with major institutions and corporations internationally. These rich, self-selected, and self-paced programs help companies improve the quality of their technical staff and attract top talent while reducing costs.

With these credentials, you might expect them to be on the cutting edge of computer technology and development and be ahead of the curve as far as computer technology projections.  Let’s take a look.  Some of this absolutely blows me away.

human-brain-interface

This effort first started within the medical profession and is continuing as research progresses.  It’s taken time but after more than a decade of engineering work, researchers at Brown University and a Utah company, Blackrock Microsystems, have commercialized a wireless device that can be attached to a person’s skull and transmit via radio thought commands collected from a brain implant. Blackrock says it will seek clearance for the system from the U.S. Food and Drug Administration, so that the mental remote control can be tested in volunteers, possibly as soon as this year.

The device was developed by a consortium, called BrainGate, which is based at Brown and was among the first to place implants in the brains of paralyzed people and show that electrical signals emitted by neurons inside the cortex could be recorded, then used to steer a wheelchair or direct a robotic arm (see “Implanting Hope”).

A major limit to these provocative experiments has been that patients can only use the prosthetic with the help of a crew of laboratory assistants. The brain signals are collected through a cable screwed into a port on their skull, then fed along wires to a bulky rack of signal processors. “Using this in the home setting is inconceivable or impractical when you are tethered to a bunch of electronics,” says Arto Nurmikko, the Brown professor of engineering who led the design and fabrication of the wireless system.

capabilities-hardware-projection

Unless you have been living in a tree house for the last twenty years you know digital security is a huge problem.  IT professionals and companies writing code will definitely continue working on how to make our digital world more secure.  That is a given.

exascale

We can forget Moor’s Law which refers to an observation made by Intel co-founder Gordon Moore in 1965. He noticed that the number of transistors per square inch on integrated circuits had doubled every year since their invention.  Moore’s law predicts that this trend will continue into the foreseeable future. Although the pace has slowed, the number of transistors per square inch has since doubled approximately every 18 months. This is used as the current definition of Moore’s law.  We are well beyond that with processing speed literally progressing at “warp six”.

non-volitile-memory

If you are an old guy like me, you can remember when computer memory costs an arm and a leg.  Take a look at the JPEG below and you get an idea as to how memory costs has decreased over the years.

hard-drive-cost-per-gbyte

As you can see, costs have dropped remarkably over the years.

photonics

texts-for-photonoics

power-conservative-multicores

text-for-power-conservative-multicores

CONCLUSION:

If you combine the above predictions with 1.) Big Data, 2.) Internet of Things (IoT), 3.) Wearable Technology, 4.) Manufacturing 4.0, 5.) Biometrics, and other fast-moving technologies you have a world in which “only the adventurous thrive”.  If you do not like change, I recommend you enroll in a monastery.  You will not survive gracefully without technology on the rampage. Just a thought.


One of the items on my bucket list has been to attend the Consumer Electronics Show in Las Vegas.  (I probably need to put a rush on this one because the clock is ticking.)  For 50 years, CES has been the launching pad for innovation and new technology.  Much of this technology has changed the world. Held in Las Vegas every year, it is the world’s gathering place for all who thrive on the business of consumer technologies and where next-generation innovations are introduced to the commercial marketplace.   The International Consumer Electronics Show (International CES) showcases more than 3,800 exhibiting companies, including manufacturers, developers and suppliers of consumer technology hardware, content, technology delivery systems and more; a conference program with more than three hundred (300) conference sessions and more than one-hundred and sixty-five thousand attendees from one hundred1 (50) countries.  Because it is owned and produced by the Consumer Technology Association (CTA)™ — formerly the Consumer Electronics Association (CEA)® — the technology trade association representing the $287 billion U.S. consumer technology industry, and it attracts the world’s business leaders and pioneering thinkers to a forum where the industry’s most relevant issues are addressed.  The range of products is immense as seen from the listing of product categories below.

PRODUCT CATEGORIES:

  • 3D Printing
  • Accessories
  • Augmented Reality
  • Audio
  • Communications Infrastructure
  • Computer Hardware/Software/Services
  • Content Creation & Distribution
  • Digital/Online Media
  • Digital Imaging/Photography
  • Drones
  • Electronic Gaming
  • Fitness and Sports
  • Health and Biotech
  • Internet Services
  • Personal Privacy & Cyber Security
  • Robotics
  • Sensors
  • Smart Home
  • Startups
  • Vehicle Technology
  • Video
  • Wearables
  • Wireless Devices & Services

If we look at world-changing revolution and evolution coming from CES over the years, we may see the following advances in technology, most of which now commercialized:

  • Videocassette Recorder (VCR), 1970
  • Laserdisc Player, 1974
  • Camcorder and Compact Disc Player, 1981
  • Digital Audio Technology, 1990
  • Compact Disc – Interactive, 1991
  • Digital Satellite System (DSS), 1994
  • Digital Versatile Disk (DVD), 1996
  • High Definition Television (HDTV), 1998
  • Hard-disc VCR (PVR), 1999
  • Satellite Radio, 2000
  • Microsoft Xbox and Plasma TV, 2001
  • Home Media Server, 2002
  • Blu-Ray DVD and HDTV PVR, 2003
  • HD Radio, 2004
  • IP TV, 2005
  • Convergence of content and technology, 2007
  • OLED TV, 2008
  • 3D HDTV, 2009
  • Tablets, Netbooks and Android Devices, 2010
  • Connected TV, Smart Appliances, Android Honeycomb, Ford’s Electric Focus, Motorola Atrix, Microsoft Avatar Kinect, 2011
  • Ultrabooks, 3D OLED, Android 4.0 Tablets, 2012
  • Ultra HDTV, Flexible OLED, Driverless Car Technology, 2013
  • 3D Printers, Sensor Technology, Curved UHD, Wearable Technologies, 2014
  • 4K UHD, Virtual Reality, Unmanned Systems, 2015

Why don’t we do this, let’s now take a very brief look at several exhibits to get a feel for the products.  Here we go.

Augmented Reality (AR):

Through specially designed hardware and software full of cameras, sensors, algorithms and more, your perception of reality can be instantly altered in context with your environment. Applications include sports scores showing on TV during a match, the path of trajectory overlaying an image, gaming, construction plans and more.  VR (virtual reality) equipment is becoming extremely popular, not only with consumers, but with the Department of Defense, Department of Motor Vehicles, and companies venturing out to technology for training purposes.

augmented-reality

Cyber Security:

The Cyber & Personal Security Marketplace will feature innovations ranging from smart wallets and safe payment apps to secure messaging and private Internet access.  If you have never been hacked, you are one in a million.  I really don’t think there are many people who have remained unaffected by digital fraud.  One entire section of the CES is devoted to cyber security.

cyber-security

E-Commerce:

Enterprise solutions are integral for business. From analytics, consulting, integration and cyber security to e-commerce and mobile payment, the options are ever-evolving.  As you well know, each year the number of online shoppers increases and will eventually outpace the number of shoppers visiting “brick-and-motor stores.  Some feel this may see the demise of shopping centers altogether.

e-commerce

Self-Driving Autonomous Automobiles:

Some say if you are five years old or under you may never need a driver’s license.  I personally think this is a little far-fetched but who knows.  Self-driving automobiles are featured prominently at the CES.

self-driving-automobiles

Virtual Reality (VR):

Whether it will be the launch of the next wave of immersive multimedia for virtual reality systems and environments or gaming hardware, software and accessories designed for mobile, PCs or consoles, these exhibitors are sure to energize, empower and excite at CES 2017.

vr

i-Products:

From electronic plug-ins to fashionable cases, speakers, headphones and exciting new games and applications, the product Marketplace will feature the latest third-party accessories and software for your Apple iPod®, iPhone® and iPad® devices.

i-products

3-D Printing:

Most 3D printers are used for building prototypes for the medical, aerospace, engineering and automotive industries. But with the advancement of the digital technology supporting it, these machines are moving toward more compact units with affordable price points for today’s consumer.

30-d-printing

Robotic Systems:

The Robotics Marketplace will showcase intelligent, autonomous machines that are changing the way we live at work, at school, at the doctor’s office and at home.

robotics

Healthcare and Wellness:

Digital health continues to grow at an astonishing pace, with innovative solutions for diagnosing, monitoring and treating illnesses, to advancements in health care delivery and smarter lifestyles.

health-and-wellness

Sports Technology:

In a world where an athlete’s success hinges on milliseconds or millimeters, high-performance improvement and feedback are critical.

sports-technology

CONCLUSIONS:

I think it’s amazing and to our credit as a country that CES exists and presents, on an annual basis, designs and visions from the best and brightest.  A great show-place for ideas the world over from established companies and companies who wish to make their mark on technology.  Can’t wait to go—maybe next year.  As always, I welcome your comments.

DODD-FRANK

December 26, 2016


WARNING—This might be a little, if not a lot, boring to some of you maybe most of you.

O.K., with that said, what is the Dodd-Frank Wall Street Reform and Consumer Protection Act? I hear many people indicate the restrictions placed on banks, both national and regional remain THE reason for significantly tight credit since its passage in 2010.   Let’s take a look at the Act, the basics and how bankers feel it is crimping their style.

The Dodd-Frank Wall Street Reform and Consumer Protection Act is a massive piece of financial reform legislation passed by the Obama administration in 2010 as a response to the financial crisis of 2008.  There were early signs of distress relative to the impending crisis: by 2004, U.S. homeownership had peaked at seventy percent (70%); no one was interested in buying or eating more candy. Then, during the last quarter of 2005, home prices started to fall, which led to a forty percent 940%) decline in the U.S. Home Construction Index during 2006. Not only were new homes being affected, but many subprime borrowers now could not withstand the higher interest rates and they started defaulting on their loans.  This caused 2007 to start with bad news from multiple sources. Every month, one subprime lender or another was filing for bankruptcy. During February and March 2007, more than twenty-five (25) subprime lenders filed for bankruptcy, which was enough to start the tide. In April, well-known New Century Financial also filed for bankruptcy.   According to 2007 news reports, financial firms and hedge funds owned more than one trillion ($1 T) in securities backed by these now-failing subprime mortgages – enough to start a global financial tsunami if more subprime borrowers started defaulting. By June, Bear Stearns stopped redemptions in two of its hedge funds and Merrill Lynch seized $800 million in assets from two Bear Stearns hedge funds. But even this large move was only a small affair in comparison to what was to happen in the months ahead.

1.) In simple terms, Dodd-Frank is a law that places major regulations on the financial industry. It grew out of the Great Recession with the intention of preventing another collapse of a major financial institution like Lehman Brothers.

2.) One of the main goals of the Dodd-Frank act is to have banks subjected to a number of regulations along with the possibility of being broken up if any of them are determined to be “too big to fail.”

3.)  To accomplish the goal stated in item number two above, the act created the Financial Stability Oversight Council (FSOC). It looks out for risks that affect the entire financial industry. The Council is chaired by the Treasury Secretary, and has nine members including the Federal Reserve, the Securities and Exchange Commission and the new Consumer Financial Protection Bureau or CFPA. It also oversees non-bank financial firms like hedge funds. If any of the banks gets too big in the council’s determination, they could be regulated by the Federal Reserve, which can ask a bank to increase its reserve requirement—the money it has ‘saved up’ and is not using for lending or business costs.

4.) Under Dodd-Frank, banks are also required to have plans for a quick and orderly shutdown in the event that the bank becomes insolvent—or runs out of money.

5.)  The Volcker Rule is part of Dodd-Frank and prohibits banks from owning, investing, or sponsoring hedge funds, private equity funds, or any proprietary trading operations for their own profit.  The Volcker Rule does allow some trading when it’s necessary for the bank to run its business. For example, banks can engage in currency trading to offset their own holdings in a foreign currency.

There are many financial types that see real issues with Dodd-Frank.  These are as follows:

  • Codifies Too-Big-to-Fail. Rather than eliminating the market’s expectation that certain big financial firms are too big to fail, Dodd-Frank creates an explicit set of too-big-to-fail entities—those selected by the Financial Stability Oversight Council for special regulation by the Fed.
  • Threatens Small Businesses.Dodd-Frank’s complex web of regulations favors large financial firms that can afford the lawyers to analyze them. New requirements will be disproportionately costly for small banks and small credit rating agencies. Dodd-Frank’s complex derivatives rules will further concentrate an already concentrated industry. (I can attest to this fact.  My company has been trying to obtain financing for a local CNG project for over two years.  Just now getting that financing in place.  We are not asking for millions of dollars but even that has come under intense scrutiny.)
  • Hurts Retail Investors.Dodd-Frank gives the Securities and Exchange Commission a new set of responsibilities that distracts it from its core mission. New rules impose costs on nonfinancial companies that will be passed on to investors and consumers. Commission resources will be diverted to protecting the wealthiest investors.
  • Consumer “Protections” Harm Consumers. The consumer financial products regulator established by Dodd-Frank, rather than helping consumers, threatens to raise the prices consumers pay and limit the products, services, and providers available to help them achieve their financial objectives. Various rules, such as price controls on banks’ debit charge fees to merchants, are likely to increase bank fees for consumers and drive low-income customers away from basic banking services.
  • Sows the Seeds for the Next Financial Crisis. Dodd-Frank forces complex derivatives into clearinghouses. These entities will be large, difficult to manage safely, and very deeply connected with the rest of the financial markets. If one of these clearinghouses runs into trouble, the economic ramifications could be massive, which means the government will be tempted to engineer a bailout.
  • Creates New Unaccountable Bureaucracies. Dodd-Frank establishes several new bureaucracies, including consumer protection, data management, and stability oversight agencies that operate with limited transparency and little accountability to the American people.
  • More Power for Failed Regulators. Despite their past regulatory failures, Dodd-Frank gives the Securities and Exchange Commission and the Fed broad new regulatory powers.
  • Unchecked Government Power to Seize Firms. Dodd-Frank allows the government to sidestep bankruptcy and instead seize and liquidate companies. Vague criteria define which companies may be seized, and there is limited judicial oversight of the whole process. The Federal Deposit Insurance Corporation might use the process to prop up failing firms and to favor particular creditors.
  • Interferes with Basic Market Functions. The Volcker Rule, which prohibits banks from engaging in proprietary trading and limits their investments in hedge funds and other private funds, is proving to be difficult to implement. It will be more difficult to comply with and will interfere with the functioning of the market.
  • Replaces Market Monitoring with Regulatory Monitoring. Dodd-Frank relies on the hope that regulators that failed before and during the last crisis will be able to spot problems in the future. For example, Dodd-Frank gives broad new systemic risk oversight responsibilities to the Fed and the Financial Stability Oversight Council. It also raises the deposit insurance cap to $250,000, which will discourage large depositors from monitoring banks and correspondingly increase the likelihood of regulatory intervention.

If you aren’t asleep by now I can’t help you.  This is the long and short of the Dodd-Frank Act.  I would say reform was needed to reign in banks and financial firms that had grossly overstepped their mandates.  GREED was their goal.  They achieved that goal for a short period of time with consequences that have shaken our country and global finance.  Please not that now one banker, insurance company, hedge fund manager or other individual was charged with criminal activity.  Heavy fines were assigned but no one is now doing time for their misdeeds.

 

%d bloggers like this: