Meet the Real Villain of the Financial Crisis

[Lynnie]

Yep - many are to blame for sure.

I know. And, I appreciate the opinions, but there are more than just two: blame dem or rep......this one goes deeper and until those dems and reps resolve this minor fact, they will simply continue to point the finger. Unfortunately.

 

[beachFool]

Can you tell me if you think that this is a good bill and if so why?? From what I've been reading it seems that even though the Republicans are blocking this bill, many democrats also say that it lacks teeth. Here is one such opinion piece that I found interesting Financial Reform: Meat or Kabuki Today? | FDL Action

I appreciate your input Buz

Thank you.

I think this bill is an improvement over the status quo. In fact there is no doubt.

However it lost a tremendous amount of muscle when the fiduciary standard (introduced by Carl Levin) was stripped out.

The lack of a fiduciary standard is bad but we don't have one today.
So stockbrokers can claim (sorry guys) that they are looking out for your interest when that is optional.

Some do...

The worst enemy of a good financial plan is the illusion of a perfect financial plan. So is this bill perfect? Nope but it is an improvement.

Would I like to see a Consumer Financial Protection Agency? Undoubtably.

The too big to fail dilemma could be solved by requiring banks to make more reserves.

Hopefully the theater of watching 41 Republicans vote en masse for Goldman Sachs will change the dynamics.

Too long?

I'm sorry.

 

[beachFool]

I know. And, I appreciate the opinions, but there are more than just two: blame dem or rep......this one goes deeper and until those dems and reps resolve this minor fact, they will simply continue to point the finger. Unfortunately.

There may be many to blame.

But the Republicans are voting en masse to stop these baby step reforms.

Who caused the problem is secondary, let's make sure it doesn't happen again.

 

[Linda]

Thank you.

I think this bill is an improvement over the status quo. In fact there is no doubt.

However it lost a tremendous amount of muscle when the fiduciary standard (introduced by Carl Levin) was stripped out.

The lack of a fiduciary standard is bad but we don't have one today.
So stockbrokers can claim (sorry guys) that they are looking out for your interest when that is optional.

Some do...

The worst enemy of a good financial plan is the illusion of a perfect financial plan. So is this bill perfect? Nope but it is an improvement.

Would I like to see a Consumer Financial Protection Agency? Undoubtably.

The too big to fail dilemma could be solved by requiring banks to make more reserves.

Hopefully the theater of watching 41 Republicans vote en masse for Goldman Sachs will change the dynamics.

Too long?

I'm sorry.

Thanks Buz - The more I read the more confused I get. This article from Bloomberg.com suggests that the current bill will be good for Goldman Sachs

Goldman Sachs Money for Obama Wins at Monopoly: Kevin Hassett - Bloomberg.com

 

[TNJed]

At the end of the day, all of this is just nature doing what nature does best.....turning mountains into molehills. As our US Empire grows so do our problems...at exponential rates. Greed and corruption have always been the downfall of man. The same can be said for an individual or a small business or even a star (either variety).

A hydrogen star's enemy is it's burn rate....the brighter it shines the quicker it dies. Guess the same could be said for the star du jour variety as well. Mountains erode faster the steeper they are. Individuals...mo' money means mo' problems. Societies and/or countries devour themselves when they reach that magical tipping point of too much wealth and apathy. Dynasty's, Czars, Emperors, Kings, Hun's, Great's and Goldmen always get the Sach in the end. Always.

I have no bias in this other than truth. And the truth is.... lasting progress is a fallacy.

"Buy the ticket, take the ride."

 

[30ashopper]

Thank you.

I think this bill is an improvement over the status quo. In fact there is no doubt.

However it lost a tremendous amount of muscle when the fiduciary standard (introduced by Carl Levin) was stripped out.

The lack of a fiduciary standard is bad but we don't have one today.
So stockbrokers can claim (sorry guys) that they are looking out for your interest when that is optional.

Some do...

The worst enemy of a good financial plan is the illusion of a perfect financial plan. So is this bill perfect? Nope but it is an improvement.

Would I like to see a Consumer Financial Protection Agency? Undoubtably.

The too big to fail dilemma could be solved by requiring banks to make more reserves.

Hopefully the theater of watching 41 Republicans vote en masse for Goldman Sachs will change the dynamics.

Too long?

I'm sorry.

Actually the republicans have stripped out some of the more worthless parts of the dems bill (like the perma-bailout authority for FDIC, which I might add Obama is against) and are now circulating their own measure. It includes an unwind provision for Freddie and Fannie as well, something sorely missing from the dems proposals.

Generally I think the hope is the two bills can be combined into a single piece of legislation that will get bi-partisan support.

The real tragedy here is not the filibuster of the dem's bail out bill, it's the fact that dems have been presented with a real opportunity to produce bi-partisan legislation, and thus far have totally refused to take advantage fo it.

 

[30ashopper]

Republican Alternative To Democrats’ Financial Overhaul Takes Shape - Real Time Economics - WSJ

 

[Linda]

Actually the republicans have stripped out some of the more worthless parts of the dems bill (like the perma-bailout authority for FDIC, which I might add Obama is against) and are now circulating their own measure. It includes an unwind provision for Freddie and Fannie as well, something sorely missing from the dems proposals.

Generally I think the hope is the two bills can be combined into a single piece of legislation that will get bi-partisan support.

The real tragedy here is not the filibuster of the dem's bail out bill, it's the fact that dems have been presented with a real opportunity to produce bi-partisan legislation, and thus far have totally refused to take advantage fo it.

I was hoping you would chime in on this. I always learn a lot from your posts!!

I'm still trying to figure out what the heck a derivative is though

 

[futurebeachbum]

The Warning

This PBS Frontline Documentary called "The Warning" does an investigative treatment of the crash and casts a wider net of responsibility. Important people were pointing out the dangers and more important people were ignoring them.

As with most things related to PBS (and/or the media in general) it needs to be taken with a large grain of salt, but it looks interesting.

From the PBS site:

Brooksley Born, who speaks for the first time on television about her failed campaign to regulate the secretive, multitrillion-dollar derivatives market whose crash helped trigger the financial collapse in the fall of 2008.

"I didn't know Brooksley Born," says former SEC Chairman Arthur Levitt, a member of President Clinton's powerful Working Group on Financial Markets. "I was told that she was irascible, difficult, stubborn, unreasonable." Levitt explains how the other principals of the Working Group -- former Fed Chairman Alan Greenspan and former Treasury Secretary Robert Rubin -- convinced him that Born's attempt to regulate the risky derivatives market could lead to financial turmoil, a conclusion he now believes was "clearly a mistake."

Born's battle behind closed doors was epic, Kirk finds. The members of the President's Working Group vehemently opposed regulation -- especially when proposed by a Washington outsider like Born.

I think that in addition to the Congress, every Administration since 1989 has a share of the blame as well.

 

[TNJed]

Left vs Right is a puppet side show compared to "he who owns the gold." Do not let the jibberjabber distract your ire. The real master is the Federal Reserve. Nearly hurts just typing their name since they are neither federal nor a reserve. They own the printing press which keeps this ponzi alive. That and the fact our currency is fiat is the only reason we haven't defaulted.


go go go Barofsky...

Barofsky Likely To Seek Criminal Or Civil Charges Against New York Fed, Geithner Targetted? | zero hedge