Walstreet Reform - New financial rules might not prevent next crisis

Discussion in 'Congress' started by Gremlin-USA, May 23, 2010.

  1. Gremlin-USA
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    Gremlin-USA <<< Me in 1970

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    What is this Administration doing, playing twiddly winks?

    Sounds to me like another Failed BO Policy, he loves to waste time, when the heck is he going to work on Jobs, you know that strange philosophy that pays peoples bills

    New financial rules might not prevent next crisis - Yahoo! News
     
  2. boedicca
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    boedicca Uppity Water Nymph Supporting Member

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    Of course they won't prevent it. The reforms exclude Fannie Mae and Freddie Mac, and actually guarantee that the Feds will bail out firms that are Too Big To Fail.
     
  3. Cuyo
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    Cuyo Training a Guineapig army

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    Even if there was a law against it, we're always going to "bail out" firms that are "too big to fail." You think we'll ever stand idly by and watch a cascade collapse of our economic system because there's a "law against bailouts?"

    The key is not letting firms get to that level, or instead of just infusing them with cash like we did this last go-round, buy them up, make them solvent, and sell off the pieces like we've been doing for decades.

    I hate to tell you guys, but it's Republicans that won't permit more sweeping legislation that forces these issues.
     
  4. boedicca
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    boedicca Uppity Water Nymph Supporting Member

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    Actually, letting them fail is the only solution. The reasons they take irresponsible risks is because they know they will be bailed out, and that politicians pass laws requiring them to take such risks in order to benefit constitutents (with the condition that the risk will be socialized while private is privatized).
     
  5. Cuyo
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    Cuyo Training a Guineapig army

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    I think we had a nice long talk about this once, didn't we? :)

    I agree to an extent. Taking irresponsible risks with the cushion of government in the event of collapse is a real problem. Now when you talk about "Letting them fail," do you subscribe to a hands-off approach to the meltdown we've just experienced? Hoover did...
    Hooverville - Wikipedia, the free encyclopedia

    This is why I say we can't let them get that big, to have such an interest in our economy that we cannot let them fail. If they are that big and do fail, they need to be acquired and liquidated, not handed $700B and told "Pay us back when you can." It's a real tricky thing ain't it... But I whole-heartedly disagree that it's a "Democratic" problem much less an "Obama" problem. Christ, Obama took office amid the crisis. To listen to some of the geniuses around here you'd swear he caused it.
     
  6. Oddball
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    Oddball BANNED Supporting Member

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    Hoover failed because of too much intervention and tinkering, not because he didn't meddle enough.
     
  7. Cuyo
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    Cuyo Training a Guineapig army

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    Hoover? You're not serious? And Boe you're not seriously thanking him?

    Is that the position you're going to take here, Hoover worsened the depression by doing "Too much?" C'mon what am I getting punk'd here?
     
    Last edited: May 23, 2010
  8. Gremlin-USA
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    Gremlin-USA <<< Me in 1970

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    There was only one thing I remember in this Bill that was actually good, the fact the Banks and Insurance Companies could not outright Lie to it's prospective Clients (something like that)
     
  9. boedicca
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    boedicca Uppity Water Nymph Supporting Member

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    Hoover pursued big government policies: central planning, Farm Bureau to manipulate prices and supplies, high tariffs on imported goods, Reconstruction Finance Corp doing bailouts (sound familiar?), huge deficit spending (yet more proof that Keynes was wrong), huge peacetime tax increase....

    Yep, Hoover meddled way too much.
     
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  10. Cuyo
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    Cuyo Training a Guineapig army

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    Nobody's gonna jump on that grenade?

    Herbert Hoover was nothing short of infamous for standing by and doing nothing as the condition worsened, insisting that the markets would self-correct!

    Dude, [that is board member "The Dude," not just an interjection] this is nearly as dumb as your insistence that Hitler was a communist or some such noise. Usually I just disagree with you but once in a while *BOOM* Really dumb. Shame on your mis-informedness, your dishonesty, or both! And shame on you Boe for jumping on board with him!
     

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