Comments on: Dodd, Frank Confident About Getting Financial Reform Passed This Year

By: dave tribbett

dave tribbett — Tue, 13 Apr 2010 03:37:49 +0000

Great Post! HERE is a post that talks about the WTO and the FSA agreement signed by Clinton in the 90s, this was the start of the financial meltdown and severely limits our government’s ability to create financial reform of any kind.

By: Huh

Huh — Wed, 24 Mar 2010 23:46:00 +0000

Lydia-I think bad regulation caused it. Because of the crazy 1/10 ratio for fractional reserve banking and the fact that the FDIC insures deposits, we need Glass-Steigel, but again this is necessary because of bad regulation. So regulation is the problem, not the converse.

By: Lydia

Lydia — Wed, 24 Mar 2010 23:00:31 +0000

Ed, there isn’t a major industrialized country on earth that doesn’t have federal banking legislation. Continuity of rules is important as many banks have outlets in more than one state, for instance. And with our banks dealing regularly with foreign banks, those entities want one clear set of rules to study, not a different set for each state. It is like imagining it would be a good idea for each state to have their own currency. This would add so much complication to commerce that it would impede it.
Read my previous post for an explanation as to why repealing the very good regulation put in place after the Great Depression, allowed our recent banking disaster to happen. Knowing history is important to avoid making the same mistakes. In this case, knowing history can help us avoid ever having another banking industry melt-down and subsequent economic downturn like the one that we have just suffered.
I don’t know about you but I don’t ever want our country to go through this mess again.

By: Ed

Ed — Wed, 24 Mar 2010 22:27:22 +0000

There should be banking reform but this should take place at the State and consumer level: like States barring out of state banks from operating, consumers using Credit Unions, States making usury laws, Judges and/or Juries nullify foreclosure or civil debt proceedings, forcing Mortage lien holders to “produce the note” and throwing out the foreclosure if they cannot do so, etc. We don’t need the Obama crew coming up with a version of SoetoroCare for banking! As Dingle just admitted they want to “CONTROL THE PEOPLE”. That is the motivation. Any SoetoroBankreform would likely be, ideally in their world, like all money goes to them and then redistributed according to race, class, sex, etc.

By: Lydia

Lydia — Wed, 24 Mar 2010 22:06:23 +0000

Huh, the recent banking troubles were caused by a lack of regulation.
After the Great Depression strict banking regulations, the Glass-Steagall Act were put in place that protected our economy for decades. In the 80′s Republicans started working on weakening those regulations. They succeeded fully in 1999 when Sen. Phil Gramm who with his fellow Republicans, passed the act that repealed the Glass-Steagall Act. You can read about this in Wikipedia under the Glass-Steagall Act to further your understanding.
Hopefully, all of the regulations in the Glass-Steagall Act, will show up in the new financial reform act.

By: Huh

Huh — Wed, 24 Mar 2010 21:05:07 +0000

progressive mama-”let them fail” is the solution…at least to those that still believe in free markets. You apparently do not.

By: Huh

Huh — Wed, 24 Mar 2010 18:59:18 +0000

I have seen Taibbi’s article, and I agree with much of what he has to say. However, bad regualtions is at the heart of our current collapse, and it is going to get a lot worse as the sovereign debt crisis unfolds. Every bill that gets passed is essentially a regulation. The healthcare bill is a form of regualtion. Whether it is good or bad will be decided in the aftermath. All I ask is that people understand the root causes of the collapse we just went through. While you point to Taibbi, I point to Peter Schiff and Ron Paul. One should look to the people that told us what would happen in great detail, not ones that were oblivious or just dead wrong.

By: Huh

Huh — Wed, 24 Mar 2010 18:55:00 +0000

CenterOne-Glass-Steigel is only necessary because of the regulations of fractional reserve banking and FDIC insured deposits. Whether these things are good or bad is up for debate. This recession was caused by regulation not deregulation. The regulation of Fannie and Freddie introduced the moral hazard by taking risk out of mortgage lending, and the regulation of interest rates by the Fed way below the rate of inflation was the gasoline for the fire. It also didn’t help that the banksters are a bunch of greedy sociopaths that created their CDOs and selling them while shorting them. But hey Fannie and Freddie and artificially low interest rates made it all possible. If you think more regulations will make a difference, then more power to you. Just keep in mind that there are more regulations on financial markets now than there has ever been, and it didn’t make a difference. Good luck closing your so called “holes”, but it won’t work.

By: Teddy

Teddy — Wed, 24 Mar 2010 18:42:11 +0000

@Lydia;
Substitute Democrats for republicans in your post re: supporting the insurance and banking industries and you’ll have the correct picture.
Sorry , you don’t get to blame the GOP for the Dems bad behavior.
Don’t get me wrong, I’m not GOP.

By: CenterOne

CenterOne — Wed, 24 Mar 2010 17:44:11 +0000

Huh | Mar 24, 2010 1:03:00 PM posted “It should be very interesting to see what the fallout of their latest handywork will be.”
I’ve read before how you loathe “regulation”, but seriously, deregulation was at the heart of this Recession. Wall Street guys will always look for holes in the system, for ways they can do trades without government interference.
After our government eliminated the regulations established by the Glass-Steagall Act, doors were opened. It’s time to close those holes. Check out Matt Taibbi’s great articles about how deregulation trashed our economy.