What was President Obama thinking?
The Obama administration asserts that the financial reform bill the President will sign into law this week will prevent future crises. In fact, it will fail to do so because it does not effectively address those perverse incentives. Indeed, it increases the likelihood of the accounting scams that are the very reason why perverse incentives pay.
All he did was make it easier to Banks and Financial Organisations to repo your Home, Vehicle, or Whatever, This bill does nothing toward actually protecting the US Consumer.
The bill does not address the problematic nature of modern executive and professional compensation even though the data shows that these are leading causes of the Great Recession. The percentage of executive compensation tied to short-term reported income has increased since the crisis, according to an independent study by James F. Reda & Associates.
The law will create a new regulatory council to monitor financial institutions in order to prevent the companies from becoming "too big to fail." It also gives the Federal Reserve [official website] the power to supervise the largest financial companies and report to the government any risks the firms may pose to the economy at large.
Why isn't Fannie and Freddie included? ask yourself indeed that!
Wasn't this organisation the leading cause for this economic crisis!!!
When signing the bill, Obama called the reforms "the strongest consumer financial protections in history" and stated that because of financial reform, "the American people will never again be asked to foot the bill for Wall Street's mistakes." Then why doesn't this Bill actually have the bones in it to enhance the protection of the people from Banks? Why does it give Banks more power over the people? Bank of America only helped one in ten struggling American home owners to be able to keep their homes, Millions were foreclosed upon, Obama's financial reform helping the people, "Really"?
Obama-Backed Financial Reform Bill Would Create New Bureaucracy with Power likely to help the financial industry than individual consumers,
With President Obama financial reform legislation into law in the next few days the public is hearing grandiose rhetoric about the bill's merits. The president has promised the bill will "end an era of irresponsibility" while Majority Leader Harry Reid (D-NV) said the bill will clean up Wall Street and "fix the system that caused the recession." Do We the People actually believe what Reid says? I know that I surely do not.
The public doesn't trust Congress, an institution that can't pass a budget and is responsible for our $13 trillion debt, to manage and fix the dysfunctional and complex financial relationships on Wall Street.
Its absolutely no wonder why the Tea Parties are having such a great success in this USA.
In the real world no crisis is like the last one. The next financial crisis could be a liquidity crisis, a debt crisis, a crisis concerning the value of the dollar, or something else. This bill will not only fail to prevent the next crisis, but will create an economy that is weakened and less able to withstand the next crisis. Unfortunately, the financial reform bill shows the era of irresponsibility in Washington is far from over. credit goes to Tom Coburn is a U.S. Senator from Oklahoma for some of this information.
We as Americans have to stand up and take part in American politics again, This Government is out of control.
Write your Federal, State, and Local Representatives and allow them to know how you feel.
We the people have got to take our Country back from the Big Government dysfunctional Bureaucracy.
Thanks Vance Keaton