Posted on 05/11/2016 4:53:59 AM PDT by expat_panama
Financial Meltdown: Thanks to the media, many Americans believe that the financial crisis was a result of banking deregulation. A new study delivers a thorough debunking of that idea.
A group of respected think tanks — the Heritage Foundation, the American Enterprise Institute, the Cato Institute and the Mercatus Center — has issued a 208-page book titled “The Case Against Dodd-Frank: How The ‘Consumer Protection’ Law Endangers Americans.” It’s a devastating indictment of the law.
The book crushes the conventional media and liberal political narrative that deregulation was at the heart of the crisis...
...the crisis “was principally the result of the U.S. government’s housing policies.” Not deregulation.
To fix the damage, the study suggests three reforms:
Close Fannie Mae and Freddie Mac. The “toxic twins” spent hundreds of billions in taxpayer backed dollars to subsidize mortgages for uncreditworthy buyers. That was the real cause of the financial crisis. Stop Fed bailouts. That’s especially true of the bank behemoths deemed “too big too fail.” Kill the Consumer Financial Protection Bureau. A massive new regulator of the entire economy, CFPB has helped choke off credit to average Americans and small businesses.
In large part due to Dodd-Frank, the U.S. economy has fallen from 3% growth before Obama, to a pathetic 2% growth now. The first step to restoring our lost economic mojo is to kill Dodd-Frank once and for all.
(Excerpt) Read more at investors.com ...
And the legislation named after them!
AMEN!!
Yes, repeal Dodd-Frank and restore Glass-Steagall. Bankers should bank, and leave the gambling to the brokers.
Repeal Dodd-Frank, and bring back Glass-Steagall
Posted before I read further down.
Great minds and all that....
Glass-Steagall was not only about creating a line between commercial banking and investment banking.
Under Glass-Steagall you could not be a full service financial advisor. You could advise on either investments or insurance, not both.
Don’t throw around generalizations like that. Glass-Steagall was not the overall panacea you think it was.
Yeah and bring back caveat emptor. Let the buyer beware. Will put half the ambulance chasers and low life lawyers out of business. Flush them out of congress too.
Cruz and to a lesser extent Rubio and Carson, (and maybe Trump, but who could tell), said that letting the banks fail would have been preferable to what we did. I agree.
Today my local bank in a rural Oklahoma town of 7,500, subsidizes the Wall Street giants through hugely increased fees, taxes and costs all mandated by Dodd-Frank. From DC’s point of view, all is right with the world when money flows from Oklahoma to New York, and not the other way around.
Can’t wait to see that full report.
Happy Mid-Week! Stocks shot up a % and then some yesterday and NYSE volume came up. Profit taking in gold and silver over the weekend has stabilized and new bases are forming there too. Right now metals futures are up +0.57% and while these stock futures are +1.15% these others are not so sure. Today: Crude Inventories and Treasury Budget.
"Things" are happening:
Huh, I didn't know we could say that. Anyway, dumping Dodd-Frank is something Mr. T's been clear on --point in his favor.
And that local bank will not be around much longer. Soon there will be less than 5K Commercial Banks left in America. Industry shrinking. Gone are the days when bankers knew their customers.
Deregulate the banks period. The gummit has no business in banking.
Pray America wakes
Throw Sarbanes-Oxley in there too!
I’m sure they will get right on it.
Just like repealing Obozocare, fixing the tax code, welfare, ISIS, etc,etc,etc.
Reinstate Glass-Steagal is step #2.
Both must be done.
Glass-Steagall also prevented the Bank's from using depositor money to secure risky investments (as an "Investment House" bank.)
Don't throw the baby out with the bathwater here, Glass-Steagall protected typical bank account holders like you and I.
Glass-Steagall would've also prevented oh, say GOLDMAN-SACHS for example from getting bailout money during the melt-down.
Thanks to "too big to fail" and the banking bailouts picking winners and losers.
The top five banks had roughly 35-40% of all retail bank accounts (checking, savings, CD's) before 2008.
Since too big to fail, the top five banks have more than 60% of all retail bank accounts. Yes, that means people shifted their money to banks that the Government "bailed out" in the wake of the meltdown figuring their money was safer there than their local community bank.
And THAT is why local community based banks are failing.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.