Stunner. New Financial Rules May Not Curb Another Major Meltdown
Posted by Jim Hoft on Monday, May 24, 2010, 4:57 AM
Of course they won’t.
You’ve got to love the photo the AP chose for this article. Rep. Barney Frank and Sen. Chris Dodd were too of the chief players behind the 2008 mortgage crisis. Now they are the ones who helped draft the fix. That ought to work out just swell.
New financial rules might not prevent next crisis
The AP reported:
The most sweeping changes to financial rules since the Great Depression might not prevent another crisis.
Experts say the financial regulatory bill approved by the Senate last week, and a similar bill that passed the House, include loopholes and gaps that weaken their impact. Many provisions depend on the effectiveness of regulatory agencies — the same agencies that failed to foresee the last crisis.
A big reason for the bill’s limitations is that banks and industry groups lobbied against rules they felt would reduce their profit-making ability.
The financial sector’s influence in Washington reflects its enormous donations and lobbying. Over the past two decades, it’s given $2.3 billion to federal candidates. It’s outdone every other industry in lobbying since 1998, having spent $3.8 billion.
Another reason this will never work is because Freddie Mac and Fannie Mae, the two mortgage giants that reportedly started the whole crisis, are not even included in this bill. The two giant mortgage firms, which are both owned by the U.S. government, will cost the public more than the banks, auto makers or even American International Group but are not included in the democrat’s reform bill.
It figures.
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Opus #6 commented:
Dems have been turning a blind eye from Fannie and Freddy for years. Why would we expect them to change now.
Andreas K. commented:
Those rules in general are ridiculous.
I mean look at it.
The government is controlling the financial world. The same government, that is destroying billions of Dollars every day, is worried about the private financial world destroying a few billion Dollars every year.
Ridiculous.
Politicians can do that when they finally show some fiscal responsibility themselves (which will never happen.)
Until then… sod off.
Kevin P commented:
Of course this bill won’t be effective. It does nothing to prosecute the DemoKKKrats that caused the crisis in the first place.
This is like an accused bank robber being allowed to select the jury, the judge, the verdict and the sentence. And after it’s all said and done, throws the arresting officers in prison.
Colo Kid commented:
On 5/20/2010 the Congress of the United States gave the control of Wall Street to the Executive Branch of the United States Government. The Boma happily signed the “bill”. That repulsive scum, Barney Frank, crowed that the “bill” had no limits or no controls. In other words, the Boma can do anything he wants to Wall Street anytime he wants. This is the ultimate take-over—the business-financial heart of the United States in the hands of an America hating freak.
Bob Grant commented:
Help retire Barney Frank elect Sean Bielat for Congress
http://www.seanbielat.com/
myohmy commented:
It is time to make these two held accountable. Woody Allen wants Obama become a dictator. Well his wish might come true.
Finncrisp commented:
The Democrooks are at it again. Lack of reform at Fannie and Freddie defines failure. It is one hundred percent crap. Is it NOvember yet?
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