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Unhappily, the government was legally obligated to pay the bonuses; and not just to the bank executives, but also the officers and directors of the bankrupt parent holding companies. That's what happens when you allow unregulated banking.
No. It was the fault of deregulation. The FDIC, FSLIC, HUD and FTC failed in regulating the banks and mortgage lenders, and the SEC had failed to exercise proper oversight of the sale of mortgage-backed securities. (Even Alan Greenspan was forced to admit that he was wrong in thinking that the market could be left to its own devices.) And, it will happen again because the Congress lacks the political will to establish regulatory control over financial markets. Dodd-Frank - which the banking lobby is working night and day to have repealed - is not the answer. Regulation must be measured, but effective; and not so heavy-handed as to stifle economic growth. To work, there must at least be a level playing field, which requires more transparency that will promote value over speculation. And, there has to be accountability; if there are no penalties for failure - if executives are rewarded for running their companies aground - there is no incentive to exercise restraint over irresponsible action.
No. It was the fault of deregulation. The FDIC, FSLIC, HUD and FTC failed in regulating the banks and mortgage lenders, and the SEC had failed to exercise proper oversight of the sale of mortgage-backed securities. (Even Alan Greenspan was forced to admit that he was wrong in thinking that the market could be left to its own devices.) And, it will happen again because the Congress lacks the political will to establish regulatory control over financial markets. Dodd-Frank - which the banking lobby is working night and day to have repealed - is not the answer. Regulation must be measured, but effective; and not so heavy-handed as to stifle economic growth. To work, there must at least be a level playing field, which requires more transparency that will promote value over speculation. And, there has to be accountability; if there are no penalties for failure - if executives are rewarded for running their companies aground - there is no incentive to exercise restraint over irresponsible action.
According to the Fed...(and lots of deluded modern money theorists on CD)...the strangling bank regulations are working just fine. Look at the Dow in response to the tapering (!!)..
The markets are finally out of detox and all is well.
Regulation, whether controlled and measured or administered with an iron-fist...doesn't work. The Dodd-Frank bill is a perfect example...there has been a shadow banking industry growing through QE. There is always going to be a loophole...
The only useful item from these banking/finance debacles is the realization that the financial system is a closed and rigged casino designed to collect wealth from the suckers and transfer it to the owners and manipulators. Remember the house ALWAYS WINS.
I don't understand why liberals, especially those here on CD are shocked that the Tea Party is still around. Liberals and their history of failed political policy created the Tea Party.
Because they refuse to see things from any point of view but their own.
It's like with abortion. Pro-life people see abortion as murder, and everyone opposes murder. If the pro-choice people could come up with a convincing argument that abortion isn't murder, then most everybody would be fine with legal abortion. But instead they ignore the human life that is being terminated entirely, and campaign on how pro-life people are just religious misogynists who want to force people to follow their religion and keep women down. This plays well to their base and gets them all fired up, but it doesn't make any substantive point on the central issue of whether or not the fetus is a human being deserving of protection.
So it goes with the Tea Party. The liberals think the Tea Party are a bunch of crazy racist fanatics. The Democrat leaders used this portrayal in political rhetoric in the beginning, and the average liberal accepted it as truth. And crazy racist fanatics aren't a significant number of people, so therefore they constantly expect the Tea Party will go the way of the KKK. Eventually the country will come to its senses. But the reality is the Tea Party is simply a movement for limited government. Being confused as to why liberals are shocked the Tea Party hasn't died means not realizing the liberals do not have an accurate view of the Tea Party. I'm sure if there were millions of active KKK members in today's society, you'd be shocked too.
But the reality is the Tea Party is simply a movement for limited government. Being confused as to why liberals are shocked the Tea Party hasn't died means not realizing the liberals do not have an accurate view of the Tea Party.
One thing is for sure. Ted Cruz and the tea party was right about Obamacare. It should have been stopped or at minimum delayed but liberals had to win the political war. To hell with what was best for the American people. Now even Obama delayed the mandate for those "who lost their insurance".
Maybe people should stop listening to propaganda and instead think.
The banking system is rigged. The congressional response was Dodd-Frank incorporating the Volcker Rule against proprietary trading by banking entities; which was violated by JP Morgan Chase Bank before the ink was dry on the "remedial" legislation. (How many billions were lost? Does anyone know?) Dodd-Frank was too little to late; and it was immediately attacked by the banking and Wall Street lobbyists that have succeeded in getting the few restrictions on trading financial derivative contracts "relaxed" to the point that it is back to "business as usual". In this, I fault President Obama's leadership; for although he did not create the problem, he failed to take decisive action to correct it. When he had the bankers by the balls and called them on the carpet at the White House, instead of bringing these rogues to heel, he let them off the leash. The gleeful bankers held a press conference to announce that the President had agreed to "work with them". You can rest assured that what happened before will happen again - and soon. And you and I - and everyone not responsible - will end up paying for it; and for a very, very long time to come.
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