Finance Reform: Congress. We Got a Deal!

#26
#26
frank keeps mentioning how an aig like situation will be avoided, but AIG isn't a bank and therefore wouldn't be included in this bill. amazing.
 
#27
#27
The prime two reason for the financial collaspe are, the election of G.W. Bush, twice, and the repeal of Glass-Steagal removing all market safeguards.
 
#28
#28
droski said:
interesting conspiracy theory. congress just doesnt' understand the business.
Click to expand...

I'm not saying there is some big conspiracy to promote big business at the expense of the "small" guy. I'm just saying that is the usual result. Studies have been conducted over numerous regulatory schemes to show that many regulations lead to greater barriers to companies who do not lobby or otherwise have the money to promote meaningful influence over new regulations. Add the fact that Congress has an incentive to pander to larger companies on account of campaign contributions and the results aren't surprising.
 
#29
#29
gallavol said:
The prime two reason for the financial collaspe are, the election of G.W. Bush, twice, and the repeal of Glass-Steagal removing all market safeguards.
Click to expand...

right because the savings and loan crisis sure got saved by glass-steagal. how about long term capital? show me a single time in american history where a collapse of the us housing market hasn't created a financial collapse.
 
#31
#31
paul1454 said:
I'm not saying there is some big conspiracy to promote big business at the expense of the "small" guy. I'm just saying that is the usual result. Studies have been conducted over numerous regulatory schemes to show that many regulations lead to greater barriers to companies who do not lobby or otherwise have the money to promote meaningful influence over new regulations. Add the fact that Congress has an incentive to pander to larger companies on account of campaign contributions and the results aren't surprising.
Click to expand...

understood and you are correct when talking about farm regulation or whatever. the fact remains that the govt doesn't understand deriviates, propitary trading, or anything of the sort. additional regulatoin isn't going to change that.
 
#32
#32
the hillarious part about this argument is that hte only companies that have cost us money, fannie, freddie, and aig, were not effected at all by glass steagal being repealed.
 
#33
#33
droski said:
understood and you are correct when talking about farm regulation or whatever. the fact remains that the govt doesn't understand deriviates, propitary trading, or anything of the sort. additional regulatoin isn't going to change that.
Click to expand...

I've been more concerned about these reforms than the health care overhaul for that exact reason.
 
#34
#34
not me. this wont cost us any money to speak of. though i suppose loan rates will likely be up and credit card fees will as well.
 
#35
#35
droski said:
the hillarious part about this argument is that hte only companies that have cost us money, fannie, freddie, and aig, were not effected at all by glass steagal being repealed.
Click to expand...

Most people I know advocating the reinstatement of Steagal seem to be under the false impression that it somehow prevented the securitization of mortgages.
 
#36
#36
paul1454 said:
Most people I know advocating the reinstatement of Steagal seem to be under the false impression that it somehow prevented the securitization of mortgages.
Click to expand...

MBS were around well before glass steagal. they were invented by solomon brothers in the 80s. just in much smaller numbers. the securitizatoin of mortgages (or credit cards or auto loans) is a good thing btw. it most definetely benefits the consumer.
 
#37
#37
droski said:
MBS were around well before glass steagal. they were invented by solomon brothers in the 80s. just in much smaller numbers. the securitizatoin of mortgages (or credit cards or auto loans) is a good thing btw. it most definetely benefits the consumer.
Click to expand...

Exactly. The ability to securitize gives us extremely low interest rates compared to what they would be without such ability - especially in home mortgages. With the risk inherent in long-term fixed rate mortgages, the inability to sell off these mortgages would result in S&L 2.0 if interest rates were to quickly rise....... I find it funny the things that get demonized by politicians and the media.
 
#38
#38
gallavol said:
The prime two reason for the financial collaspe are, the election of G.W. Bush, twice, and the repeal of Glass-Steagal removing all market safeguards.
Click to expand...

Is there a /sarcasm/ tag missing in this post somewhere?
 
#40
#40
just going to throw it out there that using only a link to show your point is pretty weak. We tend to like personal opinion to be included. Just a thought :hi:
 
#42
#42
In the lead up to the financial crisis, seven regulators shared responsibility for looking out for consumers with mortgages, auto loans and credit cards, but none treated consumers as a top priority.

what sort of garbage is this? did obama himself write this? and how exactly are consumers hurt by having access to loose credit? or are we supposed to assume everyone is an idiot?
 
#43
#43
"A new Consumer Financial Protection Bureau would be set up to safeguard borrowers. "

Oh, I feel better now. I mean, c'mon, the USPS, IRS, Social Security, Medicare, Medicaid, EPA, EEOC, etc. are all such outstanding federal bureaus. I can't wait to have another federal agency protecting me.
 
#44
#44
Lack of regulation was the main element in the financial collapse. Sadly this bill is so watered down to accomadate banks (to appease Republican committee members) that it offers very little fix from the old system. It helps the individual consumer a little bit, but not much more than before. The old firms that you could once trust to give investments an accurate rating (Moody's, AM Best ect) are still so compromised by participating in the profits from the investments they rate that they are no longer reliable. A product of less regulation. The greed fest is still on at Wall Street fims and their banking allies. Not much will change with this bill unfortunately.
 
#45
#45
gallavol said:
Lack of regulation was the main element in the financial collapse..
Click to expand...

complete and utter garbage. once again. name another time in american history where a housing collapse didnt' result in a financial collapse. what regulation SPECIFICALLY would have prevented this collapse?
 
#46
#46
gallavol said:
The old firms that you could once trust to give investments an accurate rating (Moody's, AM Best ect) are still so compromised by participating in the profits from the investments they rate that they are no longer reliable.
Click to expand...

they don't make more money if the products are successful or if they have a higher rating. not sure where you are getting your information. and AM best? who the hell is that?
 
#47
#47
gallavol said:
Lack of regulation was the main element in the financial collapse. Sadly this bill is so watered down to accomadate banks (to appease Republican committee members) that it offers very little fix from the old system. It helps the individual consumer a little bit, but not much more than before. The old firms that you could once trust to give investments an accurate rating (Moody's, AM Best ect) are still so compromised by participating in the profits from the investments they rate that they are no longer reliable. A product of less regulation. The greed fest is still on at Wall Street fims and their banking allies. Not much will change with this bill unfortunately.
Click to expand...


People not paying their mortgages/bills was the main reason why Firms collapsed, and the greed fest wasnt centered on Wall Street. People making $40K a year with a bunch of $500K mortgages were just as greedy.
 
#49
#49
gallavol said:
Lack of regulation was the main element in the financial collapse. Sadly this bill is so watered down to accomadate banks (to appease Republican committee members) that it offers very little fix from the old system. It helps the individual consumer a little bit, but not much more than before. The old firms that you could once trust to give investments an accurate rating (Moody's, AM Best ect) are still so compromised by participating in the profits from the investments they rate that they are no longer reliable. A product of less regulation. The greed fest is still on at Wall Street fims and their banking allies. Not much will change with this bill unfortunately.
Click to expand...

And yet 90% of what Obama wanted was in this bill. Quit trotting out the lame old Republicans in the pockets of big bank routine. Democrats are as much to blame for whatever mess we have as Republicans are, they are all in the pockets of mostly the same people.
 
#50
#50
VolsNSkinsFan said:
People not paying their mortgages/bills was the main reason why Firms collapsed, and the greed fest wasnt centered on Wall Street. People making $40K a year with a bunch of $500K mortgages were just as greedy.
Click to expand...

paul1454 said:
Please tell me where decisions are made not dictated by self-interest.
Click to expand...

doesn't feel so good when we blame joe six too does it? the banks and the invididuals were both greedy and both were assuming that the housing bubble would continue forever. this is how bubbles work. bubbles have happened throughout history, no matter how severe the regulation is. clearly if the banks knew it was all going to blow up they wouldn;t have had hundreds of billions of mortgages on their balance sheets.
 
Last edited:
New posts
You must log in or register to reply here.

VN Store



Back
Top