Economy

Rave

Finance Reform!

Posted 19 months ago|6 comments|637 views
Controlling The Money Tree
Written by
Altruist
Eugene, OR
Once again the Right is Wrong, and the Republicans are aligning with the bad guys. It isn't enough that they have sided with the Insurance companies and against health care, they apologized to BP for being forced to pay for their mess, now they have sided with Wall Street, the Banks, and the rest of the crooks that caused the World Wide Economic Collapse, and they have taken positions that would once again harm the people, enrich the bankers, and allow another collapse to happen again. Almost all of the Republicans are once again blocking consumer protection, but not all.

The new Financial Reform bill has the support of three Republican Senators so will pass when it comes up for debate later this week. These three Senators are being demonized by the right wing for doing what they think is right for the nation instead of towing the party line of obstructionism at all cost, despite the need or the virtue of the bill.

The final bill aims to strengthen consumer protection, so credit card companies can't hoodwink you with pages of complex fine print, and for the first time it requires transparency for derivatives and other complex financial products, it will prohibit banks from gambling with your money on those risky ponzi schemes, create a new process so the taxpayers will no longer be required to bail out failing financial firms, and make them stronger to prevent such failure.

The main reason for the reform however is to prevent the type of total world wide economic collapse, that is still crippling our economy, from happening again.

As Sen. Olympia Snowe, R-Maine said: "To ensure we avoid another financial catastrophe such as the one that plunged our nation into the worst recession since the Great Depression, it is imperative that we implement an aggressive overhaul of the American financial regulatory system,"
http://money.cnn.com/2010/07/12/news/eco...

The Republicans can't really explain why they are siding with those who are out to screw the public and endanger the economy again, because the real reason is that the anti regulatory lobbyists have been filling their campaign coffers with cash. Instead they have fallen back on the old one size fits all SOCIALISM claim.

The Right Wing has been branding any proponents of change, as Socialists, Communists, Fascists, or a number of other derogatory terms. They throw out these terms so prolifically that the terms have long ago lost any meaning and become interchangeable.

Of course the actual Socialists are laughing because none of the so called "Socialist" reforms come even close to what the socialists would like.

The actual Socialists think these modest reforms are toothless and that we shouldn't allow the bankers to get super rich on our money. Their solution would be to nationalize the banks, so they actually do what they were created to do, lend money.

• The U.S. government should nationalize the banks creating something like a U.S. Credit Union with offices throughout the country providing loans to small businesses, homeowners, and cooperatives.
• Low interest loans should be advanced to working people for home improvements, for the purchase of large appliances, and for vacations.
• Educational loans would not be necessary because we would tax corporations to pay for free education.
• The U.S. Credit Union should deny credit to speculators and gamblers in the markets.

"Socialism is not some vague, ill-defined concept. It's a well-established approach to economic and social issues. Americans can agree of disagree with that approach—and they do—but it is absurd to suggest that a little bit of regulation for Wall Street and the big banks amounts to a dramatic abandonment of capitalism."

http://www.thenation.com/blog/37300/fina...
UPDATE - 19 months ago
Now that the bill has actually passed we can see what it will do. It has a lot of Consumer protection and while it is not as strong as it should be it does put in place controls so the government won't have to bail out institutions that are "too big to fail", and regulations that will make another financial collapse much harder.

Here is an article on what the new law will mean to you and also a video. http://articles.moneycentral.msn.com/Sma...

Another thing the new law did is reassure the rest of the world. The United States is in the unique position of the world economic leader. The world had become disenchanted with the financial institutions and the lack of regulation that caused the world collapse.

"While finance is supposed to service the economy and its clients, the obvious betrayal of its vocation continues to resonate."

"Two pivotal changes, however, prove that there is at least some hope on the horizon. First, credit card companies will be forced to simplify products' terms and conditions, giving consumers the ability to make more informed decisions. And secondly, the creation of the Bureau of Consumer Financial Protection will work to improve product disclosures and financial literacy so that consumers ultimately make smarter purchases.

http://www.huffingtonpost.com/georges-ug...
EMAIL|FLAG THIS POST
COMMENTS
19 months ago: Maybe you should write a rant about how all of the rich people can die this year and not be "Double Dipped" by the tax man. Let's just say your folks are getting up there and bought a fairly nice piece of property in CALIFORNIA 40 or 50 years ago. During the last 18 Obama month that property has declined in value but I'm sure it is still well over the original purchase price. Now let's add their bank accounts, life insurance (even though they never receive it), annuities, pensions, the investements in stocks and or bonds, did I miss anything? Add all of that up and look at the cost of being taxed again when you die on the dollars you already paid tax on (several time).

2010 might be a banner year for rich deaths. Hope your happy until you get strapped with a 55 percent tax on what your parents left you after they pass in 2011.

You want to talk finance reform? Not likely from the other "Slick Harry" card dealers from Las Vegas or the RINO snowe jobs of the upper northeast.
Out Of The Box
Out Of The Box
 Moderator
19 months ago: The ones who don't have anything...well, enough said.
19 months ago: Please AL, this law is a joke, lacks any teeth, goes after things that had nothing to do with the meltdown in the first place and are just a response to political posturing. It gives very little actual new rules for banks, but focuses more on what new discretionary powers the government now has.

Oh...and of course Fannie and Freddie get a pass.

It's a joke of a law that does nothing more than let the government in the door of private businesses.
Altruist
Altruist
Eugene, OR
19 months ago: If this law was just a joke the right wing, Wall Street, The Banks, and the rest of the Hedge Fund Managers, and derivative traders wouldn't have spent hundreds of millions of dollars fighting it. Every knowledgeable economist (who hasn't been paid off) recognizes that these modest reforms may not be stringent enough, but that they are the most stringent since the great depression and are absolutely necessary.

Those who received the most money from the banks were the ones who voted against the measure, but this is one of the few pieces of legislation that lawmakers realized was a case where the needs of the nation and the people were more important than the cash doled out. http://www.opensecrets.org/news/2009/12/...

It is true that much of the legislation was left open ended so the law can be modified by legislators so those things that don't work or are not necessary can be changed to tactics that work. http://www.salon.com/wires/allwires/2010...
Colorado
Colorado
Westcliffe, CO
19 months ago: My question is why do we need this bill? For just about everyone of the bill's new organizations and laws there is already a agency. The SEC, the Department of Insurance, Securities and Banking, The Fed, The department of consumer Protection, and the list goes on forever. In fact, the head of the Department of Insurance, Securities and Banking screamed for years about the the mortgage securities and the dangers they presented and no one listened.

We need enforcement not more rules and organizations. This bill is just a political move to prove that congress is doing something. Obama could have just issued an executive order to enforce existing laws and investigate way not one of the agencies did anything.

Colorado
Colorado
Westcliffe, CO
19 months ago: oh and one more thing. There is absolutely no mention of Fannie and Freddie Mac. Those two were worse than any of the other banks because THEY SOLD THEIR MORTGAGES TO THE OTHER BANKS!!!!!

Those two companies owned over 50% of the mortgages in the country and the government is their owner. This bill is supposed to prevent the same thing from happening again and it does not address the biggest bank in the world? Sounds like bull**** to me.

Post a Comment
Sign in or sign up to post a comment.