Off the rails of the gravy train?

Discussion in 'Economy' started by sparky, Mar 4, 2010.

  1. sparky
    Offline

    sparky VIP Member

    Joined:
    Oct 19, 2008
    Messages:
    3,326
    Thanks Received:
    324
    Trophy Points:
    83
    Location:
    paradise
    Ratings:
    +341
    say it ain't so.......
    Economists: Another Financial Crisis on the Way
    Nonpartisan Group Led by Nobel Winner Calls for Stronger Financial Reforms
    by Matthew Jaffe

    Even as many Americans still struggle to recover from the country's worst economic downturn since the Great Depression, another crisis -- one that will be even worse than the current one -- is looming, according to a new report from a group ofleading economists, financiers, and former federal regulators.


    Elizabeth Warren, who was chair of the Congressional Oversight Panel, reiterates her calls for an independent agency to protect consumers from abusive Wall Street practices.In the report, the panel, that includes Rob Johnson of the United Nations Commission of Experts on Finance and bailout watchdog Elizabeth Warren, warns that financial regulatory reform measures proposed by the Obama administration and Congress must be beefed up to prevent banks from continuing to engage in high risk investing that precipitated the near collapse of the U.S. economy in 2008.

    The report warns that the country is now immersed in a "doomsday cycle" wherein banks use borrowed money to take massive risks in an attempt to pay big dividends to shareholders and big bonuses to management -- and when the risks go wrong, the banks receive taxpayer bailouts from the government.

    "Risk-taking at banks," the report cautions, "will soon be larger than ever."

    Without more stringent reforms, "another crisis -- a bigger crisis that weakens both our financial sector and our larger economy -- is more than predictable, it is inevitable," Johnson says in the report, commissioned by the nonpartisan Roosevelt Institute.

    The institute's chief economist, Nobel Prize-winner Joseph Stiglitz, calls the report "an important point of departure for a debate on where we are on the road to regulatory reform."


    Edited for copyright policy.

    ~A15

    right then, everyone loves a good horror story, and now it's the bankers wearing the hockey mask looking to off the unsuspecting , etc.

    so, is there any real skinny that's being bantered about?? re; Dudley Dodd right's reg reform proposal, or should i start diggin' a hole in the backyard?
     
  2. uscitizen
    Offline

    uscitizen Senior Member

    Joined:
    May 6, 2007
    Messages:
    45,941
    Thanks Received:
    4,791
    Trophy Points:
    48
    Location:
    My Shack
    Ratings:
    +4,807
    You mean more of the same won't fix things?
     
  3. sparky
    Offline

    sparky VIP Member

    Joined:
    Oct 19, 2008
    Messages:
    3,326
    Thanks Received:
    324
    Trophy Points:
    83
    Location:
    paradise
    Ratings:
    +341
    heh, you really do pluck the strings of my cynical heart Citizen

    but let's delve into the devils details here, does the reintroduction of Glass Steagal apply at all? or is it all old hat , and easily trod upon by modern fiscals such as Credit Derivatives?

    ~S~
     
  4. uscitizen
    Offline

    uscitizen Senior Member

    Joined:
    May 6, 2007
    Messages:
    45,941
    Thanks Received:
    4,791
    Trophy Points:
    48
    Location:
    My Shack
    Ratings:
    +4,807
    Glass Steagal needs to come back. But new regulations for derivitives needs to be generated.
     
  5. uscitizen
    Offline

    uscitizen Senior Member

    Joined:
    May 6, 2007
    Messages:
    45,941
    Thanks Received:
    4,791
    Trophy Points:
    48
    Location:
    My Shack
    Ratings:
    +4,807
    And I still have not figured out how the finiancial companies officially became banks so quickly.
     

Share This Page