Should financial system still operate under the same rules that led to its near collapse?
and caused millions of people to lose their investments?
"We intend to close loopholes that allowed big financial firms to trade risky financial products, like credit-default swaps and other derivatives, without oversight; to identify system-wide risks that could cause a meltdown; to strengthen capital and liquidity requirements, to make the system more stable to ensure that the failure of any large firm does not take the entire economy down with it.
Never again will the American taxpayer be held hostage by a bank that is too big to fail" President Obama
In case somebody says that is socialism.
U.S. Constitution – Article 1 Section 8
The Congress shall have Power …
To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes.
1828 definitions:
COMMERCE : In a general sense, an interchange or mutual change of goods, wares, productions, or property of any kind, between nations or individuals, either by barter, or by purchase and sale; trade; traffic. Commerce is foreign or inland.
REGULATE: To adjust by rule, method or established mode; as, to regulate weights and measures; to regulate the assize of bread; to regulate our moral conduct by the laws of God and of society;
2. To put in good order; as, to regulate the disordered state of a nation or its finances.
3. To subject to rules or restrictions; as, to regulate trade;
1828 Webster’s dictionary
http://www.1828-dictionary.com/d/search/word,COMMERCE
I dont understand what you are advocating. We got in this situation because the banks realized our government would back what were basically exotic and phony investments, and bail them out. Zero financial regulation would not have produced this financial crisis. Ten thousand (more) pages of regulation would not have prevented it. Corruption in government is the reason for this situation.
This is not an issue of one ideological system versus another. It is an issue of corruption. Obama, Barney Frank, Geithner, ect, etc, all still support government backing investments that do not have real value behind them. We are throwing real money at assets that cannot be sold. We have, quite literally, QUADRILLIONS of dollars of derivative investments that are supposedly in line to be bailed out. It is not a bailout, it is a crime.
I am a trained economist. To me, this is straightforward stuff. I am astonished that the world does not understand it.
I will check back on this question if you want to add anything.
So why did they repeal Glass Stegall in 1999 again? And it was overwhelmingly bipartisan with the overturn? And which president signed the bill to repeal Glass Stegall?
Hmmmm
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of course they require regulation – if we did what they did we would be in prison – they did it on paper – common people would use a gun – the results are the same except paper is protected and brings in a hell of a lot more money.
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I dont understand what you are advocating. We got in this situation because the banks realized our government would back what were basically exotic and phony investments, and bail them out. Zero financial regulation would not have produced this financial crisis. Ten thousand (more) pages of regulation would not have prevented it. Corruption in government is the reason for this situation.
This is not an issue of one ideological system versus another. It is an issue of corruption. Obama, Barney Frank, Geithner, ect, etc, all still support government backing investments that do not have real value behind them. We are throwing real money at assets that cannot be sold. We have, quite literally, QUADRILLIONS of dollars of derivative investments that are supposedly in line to be bailed out. It is not a bailout, it is a crime.
I am a trained economist. To me, this is straightforward stuff. I am astonished that the world does not understand it.
I will check back on this question if you want to add anything.
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It was the Government that made the rules. They are the enablers. The Democrats in Congress cause the economic meltdown by forcing banks to loan money to those that could not repay it.
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Of course not. If this country is to ever get it together again, every vestage of the New Deal, the Great Society and the Federal Reserve act must be repealed. Then our commerce will be just fine and operate on it’s own without manipulation by the government.
The Democrats have scrapped the Constitution. FDR’s threat to stack the Supreme Court should not have been allowed to stand by the American people. So, when you are discussing the Constitution in the context of the 20th century after W. H. Taft, the rules of 1787 no longer apply.
The Democrats are the counter revolutionaries of the American Revolution and deserve to be treated like Tories.
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