Obama Promises New Era of Big Government
- Thread starter pspr
- Start date
Absolutely, sir.
The trillions of dollars of MBS and other crap purchased by the Fed in an attempt to flood the market with liquidity (newly "printed" dollars) has made it's way to the banks (in hopes that they would lend it), but thus far they have only used it to speculate with. Hence, commodities, and thus food and energy, have seen a resurgence. This is almost entirely the fault of Federal Reserve policy in it's blind attempt to reflate our way out of the current deleveraging cycle that will happen no matter what.
Seems few Americans understand... "Debasing your currency = DESTROYING THE WEALTH OF YOUR CITIZENS"...
Beyond murdering your countrymen, there is little in the way of more egregious crime. (BTW... saddling your country with unconscionable levels of debt is part of the proccess... you know, Odumbo's "$9 Trillion defict"..)
So which part of this don't you like?
The financial crisis of 2007â2010 led to widespread calls for changes in the regulatory system.[10] In June 2009, President Obama introduced a proposal for a "sweeping overhaul of the United States financial regulatory system, a transformation on a scale not seen since the reforms that followed the Great Depression."[11]
As the finalized bill emerged from conference, President Obama stated that the bill included 90 percent of the proposals.[12] Major components of Obama's original proposal, listed by order in which they appear in the "A New Foundation" outline,[11] include:
The consolidation of regulatory agencies, elimination of the national thrift charter, and new oversight council to evaluate systemic risk;
Comprehensive regulation of financial markets, including increased transparency of derivatives (bringing them onto exchanges);
Consumer protection reforms including a new consumer protection agency and uniform standards for "plain vanilla" products as well as strengthened investor protection;
Tools for financial crises, including a "resolution regime" complementing the existing Federal Deposit Insurance Corporation (FDIC) authority to allow for orderly winding down of bankrupt firms, and including a proposal that the Federal Reserve (the "Fed") receive authorization from the Treasury for extensions of credit in "unusual or exigent circumstances";
Various measures aimed at increasing international standards and cooperation including proposals related to improved accounting and tightened regulation of credit rating agencies.
At Obama's request, congress later added the Volcker Rule to this proposal in January 2010.[13]
Quote from Scataphagos:
Not only Big Government, but his version of it.
He's already gone on record saying, "I'LL DECIDE WHAT'S CONSTITUTIONAL".
In other words, "Big government... big DESPOTIC GOVERNMENT"... how different is this from Hitler's regime? (Yeah, I know "we're not there yet".. but aren't we racing down the same path?)
The reason... the ONLY REASON.. we even have the Supreme Court of The United States... is to protect the Constitution (and thereby the country) from dictatorial presidents and the possibility of a radical Congress... "Checks and Balances"... anyone else recall American history?
America doesn't elect kings or dictators, you know... (well, not intentionally)
Gee, Dodd-Frank how do I hate thee? Let me count the ways...
First of all, it was a bill that was designed to be a regulatory result of the financial crisis, assuming that the reason the crisis happened was because of private-sector greed, when in fact it was due to poor lending standards, brought on by the US Government and policy put in place by it (and the two idiots with which the bill gets it's name). Essentially, the government ordered a substantial percentage of private-sector commercial mortgages to be on a non-commercial basis, then issued executive orders to Fannie and Freddie to make the majority of their mortgage loans on that basis and finally, having the Fed keep interest rates so low for so long. So the premise of the bill is faulty from the start.
Next, the GAO claims that the bill costs $1.25 billion before starting up, and comes with 3,000 new government positions, and 7 new agencies, including the new Consumer Protection Agency that has been set up for the sole purpose of harassing banks and forcing them to pass on more of their expenses to their customers (because every new regulation that increases costs to them is paid for by either the consumer, or by the Fed). It also includes a regulator of the ratings agencies, but this is irrelevant because it doesn't stop the number one reason rating agencies are even an issue - that the agencies receive payments from the security issuers that they rate (which is like criminals paying the judge to find them innocent).
Then Dodd-Frank actually tried to regulate the derivatives trading, which is stupid because they have no jurisdiction over exchanges outside of US soil, so the banks just moved everything overseas and put it outside the reach of DF.
In it's original chalkboard makeup, DF might have been a good thought. However it was watered down by an army of financial lobbyists who won over both Dodd AND Frank and a host of other co-signers, and turned what it COULD have been (which was a restoration of Glass-Steagal) into worthless toilet paper.
And you think Obama should claim credit for it? The only people who find this law (2300 pages of crap) for anything other than the shit it is, are the uneducated.