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 ...
Rescind Obamacare, Sarbanes-Oxley, and the entirety of Dodd-Frank. Restore parts of Glass-Steagall.
Return federally-owned lands to the states in which they reside.
Eliminate the Dept of Education. Neuter the EPA by declaring CO2 the harmless gas it always has been. Re-define wetlands as places that actually have water on them. Approve the Keystone Pipeline, open both oceans for off-shore drilling. Allow exports of crude. Remove about half the endangered species from the list.
Mandate the removal of all “Press Here for Spanish” buttons at all ATM’s. Ditto “Oprima el numero dos” as an allowable phone prompt.
And why should HAPPY HOUR be limited to one hour?
Affirmative action forced loans caused the collapse. Agencies were forced to make loans to unqualified Africans, but the institutions knew they were bad loans but some shyster in a blackrobe forced the issue.
The “urge to merge” is now more than just an “urge.” Small banks can’t handle the fees associated with Dodd-Frank. Thus they are compelled to seek a merger of “equals.” Or get sucked into becoming nothing more than a “branch bank” for a regional or supper-regional bank. No end to this concentration of power in sight. Happening nation wide.
Yep, most of the money flows to the northeast or the west coast. They run it all.
And kill Sarbanes-Oxley while we’re at it.
Small banks across America are literally getting Audited by the Fed's right out of business.
PING!
But that doesn’t deregulate banking by restoring Glass Stegal.
can we repeal Sarbanes–Oxley while we are at it?
It has destroyed long term planning for businesses and forces them to focus from quarter to quarter.
Our bankers at our two local banks know their customers. Help them through tough times (are generous about payments if a spouse gets cancer or some other type of difficulty, for example), and know who is good for a debt and who isn’t. They support local civic activities.
The national chain banks have a small presence here, just to syphon off what they can.
The story I heard was that it was wildly popular and they even built a stature to those guys, --right in front of the London Stock Exchange!
I’m not an advocate of completely deregulating banking. I work in banking, for the record.
It also meant you could not get financial advice from a CFP for example, since no one was allowed to discuss all your personal financial needs with you. I’m not saying G-S is entirely wrong, but it also wasn’t entirely right either.
You reinstate the parts that separate commercial and investment banking, you don’t go back to where you had to have multiple advisors that didn’t work together for you.
The good ol' days of banking and real "know your customer." :-)
Agree! :-)
For the record, neither am I. But that’s what the article and the think tanks are recommending.
Thank you for your work on your posts here. Good links!
Thanks! This stuff is easy enough to crank out in the morning as I need to be checking it out anyway, but you sure help me out w/ the feedback because I need to be sure it’s also useful to others.
PAR35 repeal Dodd-Frank and restore Glass-Steagall
wayoverontheright Restore parts of Glass-Steagall.
Tench_Coxe bring back Glass-Steagall
usconservative Reinstate Glass-Steagal
Extreme leftists like Sanders say that but back on the the Planet Earth the reality is that of the 34 sections that were in the Glass-Steagall Act, only four had anything to do w/ Banks and stocks, and of those only two were repealed by Clinton in 1999. The remaining 32 Sections of the Glass-Steagall Act are still in effect and do not need to be restored, brought back, or reinstated. The only parts that were taken out were dumb, they said that banks could not "associate" w/ brokerages --of course they did anyway but they just didn't call it that. Clinton's '99 act didn't do a whole lot.
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