Does Anyone feel like Bailing

Originally Posted by TheMercenary

Well why do you think that is?

In the top 20 investors to the Obama campaign we have Securities & Investment, Misc Finance, Commercial Banks, Insurance.

http://www.opensecrets.org/pres08/in...&cid=N00009638

And yet Obama proposed sweeping new regulations last week, much to the dislike of those contributors:

The Obama administration's aggressive plan for strict scrutiny of hedge funds and other freewheeling investors, part of the biggest expansion of financial restraints since the Great Depression, is drawing instant opposition from Republican lawmakers and the rules' targets. And skeptics are questioning whether the new rulebook would work anyway.

The administration's proposals, which require congressional approval, include:

_ Imposing tougher standards on financial institutions that are judged to be so big that their failure would threaten the entire system.

_ Extending federal regulation for the first time to all trading in financial derivatives — exotic instruments such as credit default swaps that are blamed for much of the economic carnage.

_ Requiring larger hedge funds and other private pools of capital, including private equity and venture capital funds, to register with the Securities and Exchange Commission.

_ Creating a regulator to monitor the biggest institutions. Geithner did not say which agency should wield such authority, but the administration is expected to favor the Federal Reserve.

_ Empowering the government to take over major nonbank financial firms such as insurers and hedge funds if deemed necessary.

Committee Chairman Barney Frank, D-Mass., and many Democrats on the panel backed the proposals, while Republicans assailed them as too far-reaching.

Financial overhaul plan draws GOP opposition

The Republicans, who also got significant contributions from the financial services industry, response?

The same old line whenever regs are proposed...."We dont need new regulations....just enforce the regulations on the books."

They sure didnt do a very good job of enforcing existing regulations between 2000-2006. Bush's last SEC chairman, a former Republican congressman, admitted much like Dodd, that he fucked up.

I dont know if this new regulatory approach is the right way forward. I dont like given more power to the Fed Reserve and I dont doubt there will be loopholes.

Is the better solution simply to enforce existing regs? I dont think so.

But I havent seen a better alternative than the one outlined above.