The much ballyhooed "Wall Street Reform and Consumer Protection Act" is anything but. Positioned to look like meaningful reform, the bill is another shameless Wall Street giveaway that must have banking lobbyists giddy with what they've managed to foist upon the public once again. On top of all the rest of its many failings, the bill authorizes future Wall Street bailouts to the tune of $4 Trillion.
The leviathan bill, coming in at a staggering 1,279 pages, authorizes such useless and pie-in-the-sky government expansions as the "Office of Minority and Women Inclusion". You can't make this shit up. Perhaps the funniest (or saddest, depending on your viewpoint) part of the bill is the provision that limits Congressional debate to 10 hours the next time the financial system collapses and needs to be bailed out. At least we know the kids in D.C. take their jobs seriously. 10 hours, folks. Wouldn't want to be late for dinner.
Never once in the 1,300 pages do the words "too big to fail" appear. There is no mention of breaking up the banks or returning to common sense regulation like Glass-Steagall. But I guess we shouldn't worry, since the framework for the next bailout has already been agreed upon in advance.
Anyone else feel like they need a shower?
We honestly need to flush the system clean.
This is completely disgraceful. We haven't learned a single thing over the past year. Whose ready for Financial Crisis 2.0?
Much like this steel tariff Comrade Change pushed through on the low, its just another example of the TRUTH nobody wants to address...
A stupid, gullible, fat, lazy, ignorant public gets FUCKED when they don't control their government's ineptitude. I wonder how long the State of the Union Address will be pushed back if Obamovitch does not get Socialist Healthcare plan passed in the next few weeks.
Even the monkeys are getting tired of the Red Banana Routine...tick tock...tick tock.
This is what they get for not actually reading the bills they vote on
Re too big to fail - don't you think that the interconnectivity of the global financial system renders this irrelevant? Assuming you don't get a reintroduction of Glass Steagall what benefit would splitting Citi into three smaller banks have in a systematic crisis given they'll all be in the same business line and, most likely, have smaller capital reserves? Bank runs throughout history show panic overwhelms diversified banks rapidly.
Glass-Steagall has to be reinstated, or we'll continue to see the same crisis over and over again. It won't stop every crisis, but it will at least prevent a crisis of the magnitude we've seen since its repeal.
Why? If it had remained in place would it have stopped the poorly conceived government HUD policies which pushed subprime, and Greenspan's creation of another bubble? Would it have stopped securitisation or corrected the models which falsly assumed non-correlated cross US mortgage default rates?
People getting dumber and lazier can't be effected by any regulation or any sort of linearly regressive logic.
If you make a $1000 a month and your existential needs are $500, then you CANNOT afford a $400 mortgage.
One slip up and you're fucked.
THIS is the underlying problem.
Idiotic regulators and the push for socialism are just a by product of a public which has Christened itself without fault and managed to find guilt everywhere but in the one place it can actually be eradicated. Mirror time for America and maybe GLASS-Steagall is more then JUST poetically just.
Glass-Steagall wouldn't have prevented it, but if the banks who made those horseshit loans were allowed to go bankrupt, I guarantee you the mistakes wouldn't be made again. Everyone seems to forget the guys on the other side of the trade who did everything right and still got fucked because the Feds stepped in and changed the rules in the middle of the game and bailed out banks whose stocks should have gone to zero.
Highly recommended reading which is relevent to those in here taking a Democrat / Republican stance on the issue:
http://trueslant.com/matttaibbi/2010/01/04/fannie-freddie-and-the-new-r…
Uncle Eddie,
Agree completely. But its these Liberal idiots who are ACTUALLY THE ONES treating the markets like a roulette tables that would be the first to cry "but Citi's my whole pension, I went all-in at $2 figuring its too big to fail".
Alas, I think we agree on the Feds being useless Communist cocksucking shitbags. I just feel like the general public's stupidity and unwillingness to participate in the political process (other then the giant circle jerk that's done every 4 years) is what is the real underlying issue.
As for the cockbags that were "too big to fail". I'm sure you remember LTCM and the same logic "working" then. Just monkeys being monkeys...maybe Patrick should whip Banana Ben an invite:)
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