Listen closely! Can you hear that? It is the sound of the spin machine in top gear……what is the spin this time….Financial Reform….we heard all the spin (which includes lies, misinformation, etc) during the “debate” (I use the term loosely) over health reform…..the Repubs have jumped all over this issue as the “new” battleground over the Obama agenda…..
Attacking the legislation as a job-loser in a shaky economy would be a new approach for Republicans, who have been far more focused on portraying the financial overhaul as one that could provide further bailouts to big banks. Brown did not mention that leading attack, which was launched last week by Senate Minority Leader Mitch McConnell and has been pilloried by Democrats as “cynical” and “misleading.”
There is even a talking point that this reforms is yet another bailout of the banking system……and it is a good talking point…it must….every conserv on record has used the same line to characterize the bill…..
People, average people are taking these guys at their word and believe that it is another bailout…..but is it? Everything said so far in opposition to the finreg bill is pure fantasy (I am being polite)…….
If you can read then please read this….this is a summary of the bill as it is proposed:
Consumers: A consumer-protection division would be created within the Federal Reserve, with the ability to write new rules governing the way companies offer financial products such as mortgages and credit cards. It would have authority over any bank with more than $10 billion of assets, and certain nonbank lenders.
- Banks: The Fed would oversee bank holding companies with more than $50 billion of assets. Regulators would have the discretion to force banks to reduce their risk or halt certain speculative trading practices.
- Failing companies: The government would be able to seize and break up large failing financial companies. Big companies would have to pay into a $50 billion fund to finance the dissolution of a failing firm.
- Systemic risk: A new council of regulators would be created to monitor broader risks to the economy. The council could strongly urge individual agencies to take specific actions to curb risk.
- Corporate governance: The Securities and Exchange Commission would have authority to write rules giving proxy access to shareholders who own a certain amount of stock. Shareholders would have a nonbinding vote on compensation packages for top executives.
- Hedge funds: Large funds would have to register with the government.
As I have said many disagree with the reform bill…I do….but I will give you my reasons without making up crap to sell my point of view…..
1–I do not think it goes far enough on controlling the institutions…they will find a way around the regs
2–Banks and derivatives are not separated which will allow the same crisis we have now to return in the future.
3–I do not think the the protection of the consumer goes far enough and they will still be vulnerable to predatory practices.
4–Transparency is lacking
5–As far as I can tell this will not end “Too Big Too Fail”.
These are my five biggest reason I do not like the bill, as is…..whoever I see it as a pretty good start as long as the regs stay in place they can be fine tuned as the country moves forward….
OK – your points and my opinion…
#1 – bullshit (sorry)! They will ALWAYS find a way around because they are better at it than the legislators and I don’t (generally) believe in legislation anyway.
#2 – Adsolutely! Couldn’t agree more!
#3 – Bullshit again! Consumer protection is a total fallacy. The only protection for the comsumer is to teach the ignorant fuckers to think for themselves for once – government can’t and shouldn’t do it for them! If they can’t manage that – tough! People should grow up and start living in reality!
#4 – And your point is? When is that going to be likely?
#5 – I couldn’t agree more. Maybe if they began by addressing the REAL issues, they might achieve something, but I doubt it!
MY view is simply this – If most of these people were clever enough to deal with this, then they’d be out there doing it themselves because there’s vastly more money in it than they’re getting from their government sponsored position…
So, why do they and we waste our time and money on it? Our only protection from all of it is to wise up and be able to sideline all of this crap so that it doesn’t affect ordinary people with ordinary lives in the future. That IS possible, but not easy!
MY turn…LOL
#1–yes they will find a way around any regs….but it can be made more difficult than it is now….Glass-Steagall did a pretty good job and that is why they conned the Dems into shit canning it…..
#2–We have a agreement…cool!
#3–The consumer is like a child….they need protection from themselves or educated…I prefer the education thing…after all it is Financial Education Month
#4–If the transaction were more public and accessible then there would be far more transparency than now…#
#5–If they were a smaller investment bank then when they screw up…let them croak……
I agree they are very clever and there are some economists that are just as clever that could be used to break the bad habits of these thieves…..
My turn again – 😆
#1 – OK, we’ll agree to disagree – or save it!
#2 – Cool indeed.
#3 – Children grow up – bIF you let them!
#4 – OK, if you insist, but you just described the public as being like children – so how will it help to have more tranparency if few will understand whta they see?
#5 – As I said – couldn’t agree more.
I agree there ARE people who might be able to help, but could we afford them – and WOULD we?
You know that we could keep batting this nut case around until we both have a case of the red ass….so I will what you have said….we will agree to disagree……
I know – bitch, isn’t it? 😆
Yep……and we do that well….BITCH!….LOL
Another point is:
Corporate governance: The Securities and Exchange Commission would have authority to write rules giving proxy access to shareholders who own a certain amount of stock. Shareholders would have a nonbinding vote on
This whole thing about shareholders is just smoke…….most of us that own stocks own them thru funds…the funds would then vote on compensation……this part is just so much crap!
Of course…
One of the interesting things about the lies was that McConnell had met with Wall Street execs. I wonder what they talked about. He does not seem to be wanting to talk about it. This raises the question, how much did he sell the tax payers out for?
Unfortunately, the democrats do not have any credibility here.
Personally, I listen to Elizabeth Warren…the woman is a very good person to be in charge of an oversight committee……
Just to play the devil’s advocate; how would education helped when Wall Street was misrepresenting the quality of mortgage backed bonds? These bonds were given the highest rating which meant they were not supposed to have subprime mortgages backing them. Unfortunately, it turned out that was true. I can see education reducing the odds of being a victim of fraud but to have been able to catch this fraud would have required one to audit every bond that he or she bought.
Good question……At the beginning of April I did a post on it being Financial Education Month……I said people need to be taught that “if it sounds too good to be true…it usually is”….it simple but first we would have to find a way to stomping out greed….greed makes education all that more hard…..
Isn’t that add? I didn’t read your reply before writing mine…
🙂
ODD – even – duh!
I take your point, but education always helps – not least because a better educated public makes it much more likely that at least some people will spot the con! If people are sufficiently sceptical, they will perhaps realise jsut what a bunch of lying tossers these people are. Who forces anyone to by bonds? A streetwise public will see through to the truth in a lot of cases – or to put another way – if it seems too good to be true, it probably is… what a pity all these clever bankers couldn’t figure that out – or did they? and allowed their greed to outweigh their common sense?
This type of crap will happen in every generation……..you were right when you said that they will ALWAYS find a way to cheap and rob…..
Ah… There is this radio pundit out there claiming that you should have no problem find funds that give 12% returns. That sounds too good to be true to me but his listeners buy into it.
More fool them, then!
With the Democrat’s plan for health care reform, there were big downsides that almost completely clouded the upsides. At least in their Financial Reform plan, any of the potential pieces would unequivocally be a step in the right direction.
However, that doesn’t mean we should keep pushing for more and better regulations…
I for one am not totally happy with the bill for the reasons I state, but you are right maybe we can go forward. Another thing is that the Repubs are backing down a bit…I think they see that the public is on the Dems side and it would be suicide to continue to oppose….