Three Problematic Truths About the Consumer Financial Protection Agency Act of 2009

FinReg21 ^ | 9-14-2009 | Joshua Wright & Todd Zywicki

[stan_sipple]

The creation of a new Consumer Financial Protection Agency (“CFPA”) is a very bad idea and should be rejected. The proposal is not salvageable and cannot be improved in substance or in form. The proposal is premised on a fundamental misunderstanding of the causes of the financial crisis. The Obama Administration’s Financial Regulatory Reform White Paper, and the intellectual underpinnings of the new CFPA as articulated by law professors Elizabeth Warren of Harvard and Oren Bar-Gill of New York University, set forth the blueprints for a powerful regulatory agency designed to react to a perceived failure of consumers to understand innovative financial products. The foundational premise of the CFPA is that a failure of consumer protection, and specifically irrational consumer behavior in lending markets, was a meaningful cause of the financial crisis and that the CFPA would have or could have averted the crisis or lessened its effects.

Neither the White Paper nor Bar-Gill and Warren offer a scintilla of evidence to support these claims. Let us repeat that to make it clear—there is no evidence that consumer ignorance or irrationality was a substantial cause of the crisis or that the existence of a CFPA could have prevented the problems that occurred. In this article, we highlight three fundamentally problematic truths about the CFPA:

[WVKayaker]

[stan_sipple]

another government solution to a government created problem

[John.Galt2012]

If you noticed the liberal progressive idiots immediately jumped them for their assessment. Who says this administration wouldn't create jobs. This agency could add another 10,000 Govt. employees who will vote to sustain BIG GOVT. on which CFPA will rely for its continued existence. Isn't that great! CFPA is a scam. Disband the Fed and fractional reserve banking, return to gold standard, allow failure, and punish the cheaters would be a great start to actually protecting consumers. CFPA is about political power and influence plain and simple.

[givemELL]

All consumer “protection” functions, to be administered via the Bureau of Consumer Protection WITHIN the Federal Reserve, transfers the data and micromanagement of all financial transactions of 308 million US citizens to a foreign corporation by Congressional legislation.

A larger, more definitive piece on how the globalization and financial de-nationalization of each US citizen is accomplished by this move:

http://www.newswithviews.com/Veon/joan54.htm