On thursday the president kicked off his campaign to take over Wall Street with his signature style 'pass my legislation or we are all doomed' fear mongering battle cry. Just like the ones you saw in the health care debate.
President Obama's agenda here is not the rescue of the free market, it is a take over by proxy. The way the proposed law is currently structured the federal government has arbitrary discretion in deciding what Wall Street can and cannot do. This will not save the economy from the next swindle. The same retards who were equipped with the regulations to catch Bernie Madoff but could not, will now be equipped to line their pockets and be influenced without any checks or balances. The folks who surf porn rather than utilize existing regulations to catch the bad guys are suddenly going to snap into action. Right! The administration that pretends to despise lobbyists and special interests has just created a new market, and put a yoke on the golden goose. The cash cow (wall Street donations) that was key to his victory in 2008 will be key in 2012. Most would think that alienating Wall street is not a good idea, but this is a Chicago style takeover. His administration will be making the rules, and it will be pay to play. Wall Street will surely pay. The economy and the country is slowly looking more and more like the faux democracy of Russia.
I am not saying do nothing. In fact I truly believe that like health care the fix is simple and does not mandate intrusive government intervention by bureaucracy. Like health care the administration is once again making lofty rhetorical arguments, to which the bill does nothing to address.
back to basics on financial reform
Still, it took extraordinary forces to turn a subprime bust into a global financial crisis. The key forces were excessive leverage on and off bank balance sheets, and derivatives that allowed massive but opaque side bets on the future value of U.S. homes. And it was these two factors that magnified (and exported) the losses in the mortgage market; legislators should focus on them. Instead, both the House and Senate bills are packed full of scatter-gun regulations that owe more to the prejudices of legislators than to a rational assessment of what actually went wrong.and the proposed bill does nothing about Fannie and Freddie.
Fannie Mae Eases Credit To Aid Mortgage Lending
By STEVEN A. HOLMES
Published: September 30, 1999
''From the perspective of many people, including me, this is another thrift industry growing up around us,'' said Peter Wallison a resident fellow at the American Enterprise Institute. ''If they fail, the government will have to step up and bail them out the way it stepped up and bailed out the thrift industry.''Yet, while pretending that this take over of financial markets will help the middle class or the economy, it merely sets up a system where bribes and influence will be the only way to do business. First you had the incredible expansion of Czars. Now we introduce the Wall Street Kommisar's! Ja Ja! '