Some good things in the Obama financial overhaul?
Submitted by BmoreBrawler on Thu, 10/29/2009 - 12:24
http://www.cnbc.com/id/33516462/
Is the Fed's independence for setting monetary policy the next thing to go?
You have to read to the last page, 253, of the regulatory reform bill unveiled Tuesday night to find one of the most historic parts. On that page, the proposed law would amend the Federal Reserve Act to take away the central bank's independent ability to bail out a specific company.
The new rule would require "written concurrence of the Secretary of the Treasury" if the Fed provides any assistance to a specific company.
Moreover, the Fed can't create a unique type of vehicle to bail out a company a la the Maiden Lane investment companies. It has to be from a facility available to all.
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"First they ignore you, then they laugh at you, then they attack you, then you win!"
GANDHI
"First they ignore you, then they laugh at you, then they attack you, then you win!"
GANDHI
Available to all, huh?
Above, you say...
"On that page, the proposed law would amend the Federal Reserve Act to take away the central bank's independent ability to bail out a specific company.
The new rule would require "written concurrence of the Secretary of the Treasury" if the Fed provides any assistance to a specific company.
Moreover, the Fed can't create a unique type of vehicle to bail out a company a la the Maiden Lane investment companies. It has to be from a facility available to all."
So that 'facility available to all' will be able to give everyone who wants one a bail out? Probably not, huh? So I suppose it'll still be only certain people getting all that money, won't it? And do you care to take a guess why this was done? I will. It was probably done to allow even more of those scum suckers in DC to reward the people that they'd choose to rather than just have the Fed be able to do it. After all, all of the Fed's buddies get to pass out 'free' money, why shouldn't they?
And you see this as 'good'? You really are a statist. Tell the truth; you secretly love Obama and his administration, don't you?
it was a question, and I
it was a question, and I copy-pasted it from the article. Stop crying.
Ventura 2012
Based on this article alone,
Based on this article alone, the bill is a step in the right direction, as it does introduce one more hurdle to clear to initiate a bailout. Also, the actions of the treasury are more out in the open than those of the Fed, meaning more debate. Of course, if it also means that treasury can initiate actions on their own, that are now currently limited to the Fed, things will really get out of control. At least Fed chiefs tend to be technically competent, as opposed to treasury officials.
Predictable for a daytrader/ stock hawker outlet like CNBC to include some snide remark about how "laughable" HR1207 is at the end, though. If that passed, none of this treasury power grab would make much difference anyway. As it stands, it's likely just Timmy Geithner pouting because Bernanke gets all the attention.
I agree with you, although I
I agree with you, although I think the financial overhaul in its totality is a huge negative.
Ventura 2012
A step in the right direction? Are you kidding?
A step in the right direction would be to declare what's already been done as illegal and unconstitutional. EXPANDING the abuse of 'the people' so that an even broader segment of those deemed worthy by the government can get their hand out is most certainly not a step in the right direction.
You can have all the socialism/fascism/communism you want. Just don't force me to participate.
"what's already been done as illegal and unconstitutional"
Yes. That seems like the kind of gradual change allowed by our political system.
CHA-CHING!
CHA-CHING!