Steinlight
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- Jan 30, 2014
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- #81
Bond rating agencies were and are regulated by the SEC. So it appears they failed in enforcing already existing regulations due to conflicts of interest and ineptness. How would more laws or another government regulatory agency all together prevent a crisis?This is one area where competition nearly ruined us. Since they get paid to rate bonds by the bond issuer It was in their financial interests to rate various instruments better than they actually were or lose business to the others. Then this inaccurate rating was used leverage things for many times their value thereby magnifying the loss many times when they failed. There has to be some way to make this process more accurate. I am sure people more knowledgeable than me about Wall Street, like Sen. Warren, have some ideas, shame no one is listening.I assume you are referring to deposits being funded by the taxpayer. What you are advocating in this case is more of a free market, not more government regulation. I agree in fact, remove moral hazard and government bailouts.Well not allowing the banks to use consumer deposits to play on Wall Street would be a good start, puts the FDIC on the hook if investments go south. Another good one would be making the penalties for index manipulation so severe that a bank would not survive getting caught. The entire bond rating system needs to be altered to be more honest. There are lots of things that should to be done to restore faith in investment and reduce volatility but the big bank's best scams depend on boom and bust.I am against her commandments because because they represent and stupid and crass form of populism that appeals to people like you in the lowest common denominator.If you can't defeat the progressives on ideas alone you are in trouble, here they are:
- "We believe that Wall Street needs stronger rules and tougher enforcement, and we're willing to fight for it."
- "We believe in science, and that means that we have a responsibility to protect this Earth."
- "We believe that the Internet shouldn't be rigged to benefit big corporations, and that means real net neutrality."
- "We believe that no one should work full-time and still live in poverty, and that means raising the minimum wage."
- "We believe that fast-food workers deserve a livable wage, and that means that when they take to the picket line, we are proud to fight alongside them.".
- "We believe that students are entitled to get an education without being crushed by debt."
- "We believe that after a lifetime of work, people are entitled to retire with dignity, and that means protecting Social Security, Medicare, and pensions."
- "We believe—I can't believe I have to say this in 2014—we believe in equal pay for equal.
Get to work telling us how all this stuff is wrong without the mudslinging
Good for the working class and good for the country.
So why are RWs against it?
Because it would be good for the working class and good for the country.
Really, that's the only possible reason.
It is evident in her very first commandment
"We believe that Wall Street needs stronger rules and tougher enforcement, and we're willing to fight for it."
What specific regulations do we need, and why?
As for ratings agencies, what specific regulation should the government enact, and why?