We're F***ed.

[legion]

http://news.yahoo.com/s/ap/20080329/ap_on_go_pr_wh/fed_overhaul

The Bush administration is proposing a sweeping overhaul of the way the nation's financial industry is regulated.
...
The proposal would designate the Fed as the primary regulator of market stability, greatly expanding the central bank's ability to examine not just commercial banks but all segments of the financial services industry.

Does anyone else think that this will dilute the Fed's mission of alternatively fighting inflation/fighting recession?

I also fear that it will ruin an institution that over the past 70 years has done a pretty good job of staying out of politics.

[Hugh R]

What, you don't like a central bank, it worked for the USSR ... oh, wait.

[Noney]

I smell a rat!

The sentence, "The proposal would designate the Fed as the primary regulator of market stability" flies in the face of everything that capitalism stands for! By its very nature, a market economy will have ups and downs. That's just the way it works.

We are currently in a down cycle which, by the way, everyone is calling a recession. I prefer to look at it as a correction. Too many people living too far beyond their means for too long. Something had to give. In the long run the economy will be healthier for it.

This Fed scheme is just a knee-jerk reaction to market convulsions.

[cool_chick]

I am not convinced this is the man to effectly, unbiasedly, analyze this.....

[gprsh924]

f*ck me

[Porsche-O-Phile]

Time to move abroad. Seriously.

[hardflex]

Well, considering that this will be the second financial meltdown since it was deregulated in 80's, maybe a bit more regulation will be a good thing.

[Jim Richards]

Bush loves regulation

[cashflyer]

Ron Paul had the answer.

[Porsche-O-Phile]

Regulation is NEVER the answer.

Forcing people to live with the consequences of their own stupid decisions is the honest/correct/sustainable way to do it. But apparently this isn't consistent with pansy-ish modern notions of management and "sensitivity training".

This idea is born out of political correctness. It's official - we've become a nation of pussies who expects to be "winners" all the time.

In the same way that nobody ever got in shape by sitting around doing nothing, no nation ever got stronger, tougher and self-reliant though being handed schit by a bunch of stupid politicians.

[p911dad]

I need to see the entire proposal before judging. I see this as a reaction to an event long in unfolding that almost took the entire financial system over the cliff. I expected something to be proposed, and I think it is naive to expect that the Fed wouldn't react. It seems to me a large segment of the lending and investment industries managed to decouple the mechanisms that protected the investing community from rogue greedsters and created a loss of confidence in the entire system. This is a plan to regain investor confidence and interbank confidence. No confidence=No trust in getting repaid=No loans=No system. Back to cash on the barrelhead. No cash=no house.

[MRM]

Originally Posted by gmeteer

I need to see the entire proposal before judging. .

Now that's just crazy talk.

[svandamme]

Originally Posted by MRM

Now that's just crazy talk.

it sure is
and not the PPOT kind of crazy talk either
let's face it, it takes a lot of impulsive-reaction-posting if one want's to rack up a serious post count on PPOT..
holding back opinions till all facts are available, just ain't the way to become a PPOT post-whore..

trust me , i know a thing or two about these things

[Shaun @ Tru6]

the success and downfall of capitalism and the free market economy is that it is based on Greed.

the combination of a republic and capitalism requires a small, but evolving, degree of regulation to be successful. That is, government must keep its finger on the pulse of capitalism to moderate the economy.

More regulation leads to slow economic growth.

Less regulation leads to quick economic collapse.

Moderation via innovative federal regulation is key.

[turbo6bar]

http://www.nytimes.com/2008/03/29/business/29regulate-text.html

Well, then. Intellectuals need not reserve comments. Read the text and comment.

[turbo6bar]

Originally Posted by Shaun 84 Targa

Moderation via innovative federal regulation is key.

Financial innovation is what got us here in the first place. We need less 'innovation' and more common sense.


Before we aspire to regulate, we need the ability to identify imbalances and dangers in the marketplace. The Federal Reserve has shown little ability in identifying the looming problems in the housing market, so I'm not confident they have the ability to regulate properly. After all, how can you eliminate a problem, if you can't see it?

I would feel much more confident if the Treasury proposal required review of spectacular information sources like the "More Bad RE News" thread. Some of the folks who complain about the current mess are the same folks who denied the existence of a housing bubble. Hey, dude, pull up your pants, step away from the HELOC, and get with the program!!!

[Shaun @ Tru6]

Originally Posted by turbo6bar

Financial innovation is what got us here in the first place. We need less 'innovation' and more common sense.

Business innovation guided by greed got us into this mess, not innovative federal regulation responding to an innovative private sector.

This country needs more business innovation to succeed in the next 50 years. And just as importantly, it needs common sense oversight to countermand irresponsible risk taking.

[MRM]

Originally Posted by turbo6bar

http://www.nytimes.com/2008/03/29/business/29regulate-text.html

Well, then. Intellectuals need not reserve comments. Read the text and comment.

Well now it's official. We here no longer need to read the proposal to pass judgment. If it's printed in the NYT it is self-evident that it is a plan by facist or communists (it's hard to tell the difference between the two in New York as viewed from PPOT land) to take over and ruin our country's financial system and outsource us all to China. Isn't the Federal Reserve supposed to be controlled by seven Jewish bankers? Are they going along with this nonsence or did the Trilateral Commission do away with them? Where's David Rockefeller when you need him?

[RoninLB]

i didn't read 15 pages



Opening bs
"Following is the executive summary of the Blueprint for Financial Regulatory Reform, a report from the Treasury Department on ways to improve oversight of the financial services sector:"

p15 Conclusion
"The United States has the strongest and most liquid capital markets in the world. This strength is due in no small part to the U.S. financial services industry regulatory structure, which promotes consumer protection and market stability. However, recent market developments have pressured this regulatory structure, revealing regulatory gaps and redundancies. These regulatory inefficiencies may serve to detract from U.S. capital markets competitiveness.

In order to ensure the United States maintains its preeminence in the global capital markets, Treasury sets forth the aforementioned recommendations to improve the regulatory structure governing financial institutions. Treasury has designed a path to move from the current functional regulatory approach to an objectives-based regulatory regime through a series of specific recommendations. The short-term recommendations focus on immediate reforms responding to the current events in the mortgage and credit markets. The intermediate recommendations focus on modernizing the current regulatory structure within the current functional system.

The short-term and intermediate recommendations will drive the evolution of the U.S. regulatory structure towards the optimal regulatory framework, an objectives-based regime directly linking the regulatory objectives of market stability regulation, prudential financial regulation, and business conduct regulation to the regulatory structure. Such a framework best promotes consumer protection and stable and innovative markets."





me
The Treasury Sec has done a lousy job for a very long time no matter which president imo. Why didn't Fed bank regulators respond to off balance sheet SIVs? Why didn't Treasury complain about Greenspan subsidizing interest rate costs by indirectly inflating the money supply? Real estate inflation has been wacking the economy as it travels throughout. Where is all this cash sitting on the sidelines going to travel to next? [hope it's the stock market]



my initial opinion is that the report addresses some market noise while using Treasury for investor political bs. The gin mills around Wall and Broad are probably humming with methods to get around any regulation that DC can dream up. If they change the rules so you can't win the answer is simple, just invent a new game.



all above a prejudicial rant

[HardDrive]

Bush is the greatest traitor to the conservative cause this country has ever seen.