Financial Sector Overhaul Proposal

Discussion in 'Free Speech Alley' started by CParso, Apr 2, 2008.

  1. CParso

    CParso Veteran Member

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    I'm surprised there hasn't been a thread on this yet, so just in case anyone isn't aware here are some links to stories on the subject.

    http://www.forbes.com/feeds/ap/2008/03/31/ap4834397.html

    http://online.wsj.com/public/articl...heNn1spJiG5Vg_20090401.html?mod=rss_Whos_News

    http://www.msnbc.msn.com/id/23853415/

    Treasury Secretary Henry Paulson unveiled the proposal of the most far-ranging overhaul of the financial regulatory system since the stock market crash of 1929 and the ensuing Great Depression. The plan would change how the government regulates thousands of businesses from the nation's biggest banks and investment houses down to the local insurance agent and mortgage broker.

    The primary issue behind the proposal is to correct overlapping jurisdictions & assign jurisdictions to current gray areas.


    What are everyone's thoughts on this?
     
  2. Bandit88

    Bandit88 Old Enough to Know Better

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    Of all the things I suck at (an impressive list, I must say), finance of all flavors is my suckiest suck in all suckdom.

    Buying low, selling high, no load mutual funds, dollar cost averaging, and IRAs are all good ideas. And........I'm spent.....

    Which leads one to wonder....why post in this thread, then?

    Excellent question.

    I'll ask my shrink next Tuesday....
     
  3. CParso

    CParso Veteran Member

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    The government created this problem with a lack of regulation & keeping interest rates too low for too long.

    I agree with you as far as specific changes, but these would be broad changes which allow us to better address the smaller issues in the future.

    The market will mend itself, but it won't stop itself from doing it again in some other form, which is why proper government regulation is necessary.
     
  4. houtiger

    houtiger Founding Member

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    Why bail out the Bear Stearns bondholders? Govt. says a BS default could have really harmed the financial infrastructure of the nation, so the govt. had to step in. If you can create problems that large and potentially detrimental to the nation, and then the taxpayers have to step in and fund the bond the govt. issues to pay off the BS bondholders, you have to be regulated. If the govt. has to step in to clean up your mess, you should to TOLD how not to get into the mess, because clearly you did not have enough sense to stay out of the mess on your own.
     
  5. gumborue

    gumborue Painfully Pessimistic

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    i, for one, dont want a collapse of the market and another great depression. i am glad to the govt attempting to be proactive.
     
  6. CParso

    CParso Veteran Member

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    1. I don't see how this is relavent.

    2. I believe that another great depression is nearly impossible in the current day & age. There are too many people with too much money to invest to let it happen.

    3. While I do not have serious issue with the government bailout of stears, I do believe that it wouldn't have been necessary if there were proper regulations, which is the point of the overhaul being discussed.
     
  7. red55

    red55 curmudgeon Staff Member

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    It's the steering by The Fed that has made another Great Depression unlikely. In times of too much money there is always inflation, a recesssion, or a depression to balance it.
     
  8. CParso

    CParso Veteran Member

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    I agree, although I neglected to mention it.
     
  9. gumborue

    gumborue Painfully Pessimistic

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    my poor grammar?:)

    i think a depression would be likely at some time in the near future if the govt did nothing to instill confidence in banks at times of increasing tension.
     

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