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View Diary: UPDATED!! Urgent: House to Consider New Cramdown Legislation This Week (110 comments)

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  •  Someone needs to tell Rep. Frank (2+ / 0-)
    Recommended by:
    route66, phonegery

    that if it wasn't disruptive, we wouldn't care about it.

    Someone needs to tell Wall Street that the party's over.

    "Government is not instituted for the good of the governor, but of the governed; and power is not an advantage, but a burden." --Algernon Sidney

    by James Robinson on Tue Dec 08, 2009 at 07:52:28 AM PST

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    •  He's a smart guy - (1+ / 0-)
      Recommended by:
      route66

      old legislation wouldn't do much to change things in the financial industries.  We need a fresh start, and that's going to take some time.  Pushing legislation through because it would be popular will most likely make things worse.  We need people who really understand the changes in the financial industries to be writing the language of regulation, not people who are responding to public pressure to punish the bad guys.  

      Against stupidity, the gods themselves contend in vain.

      by I love OCD on Tue Dec 08, 2009 at 08:13:48 AM PST

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      •  What changed? (2+ / 0-)
        Recommended by:
        route66, phonegery

        I mean, beside the ability of technology to accelerate and amplify the same old abuses and crimes and dysfunctions?

        Here is the thing: If they want to rewrite Glass-Steagal, fine, as long as it has the effect the original legislation had. It does not punish anyone, nor does anyone intend it to punish anyone. The clear purpose of reinstating Glass-Steagal is to re-clear the firewall it established between two different areas so that the same fire doesn't claim both of them.

        This is about returning to a bias in favor of stability and predictability, because the alternative is always last September. Always.

        "Government is not instituted for the good of the governor, but of the governed; and power is not an advantage, but a burden." --Algernon Sidney

        by James Robinson on Tue Dec 08, 2009 at 08:32:02 AM PST

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        •  Financial instruments (0+ / 0-)

          changed.  There are, IIRC, very few people who really understand the extent to which wall street is a crap shoot, with all the die loaded in favor of guess who.  Glass-Steagall isn't sufficient to regulate the new games wall street plays.

          Regulators are always going to be playing catch-up - it's the nature of the system.  I'm hoping that they'll start with a regulatory system that allows for faster action and more flexibility, and that admits that it's never going to catch everyone and everything.

          Against stupidity, the gods themselves contend in vain.

          by I love OCD on Tue Dec 08, 2009 at 11:22:48 AM PST

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          •  Most of the new "financial instruments" (0+ / 0-)

            could probably be addressed by amending G-S to say that any instruments not covered in these regulations are illegal.

            After all, most of them are responsible for triggering the collapse.

            Clinton tried to rein in the derivatives market in the '90s, was warned away by enraged Republicans who threatened war, backed down, and got a war from the Republicans anyway. So the lesson is that no matter what actually happens, anyone even thinking of bringing sanity to Big Finance is going to be attacked. So if you're going to think about it, you might as well do it. While you're at it, you might as well ignore the shrieks and howls of the people saying you shouldn't, because they're just out to destroy you.

            "Government is not instituted for the good of the governor, but of the governed; and power is not an advantage, but a burden." --Algernon Sidney

            by James Robinson on Tue Dec 08, 2009 at 01:04:09 PM PST

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            •  Actually my concern is (0+ / 0-)

              with the loopholes that will be left if G-S is simply reinstated without a close look at who can slide through.  I heard an interesting interview on NPR tonight - I missed the woman's name, but she was speaking about America's financial history.  The host asked what might be learned from 2008-09 and she said she hoped we'd learn that the day of individual self-interest had to give way to the need to work for the good of all.  How terribly socialistic!  I'd like to see some serious greed taxes in place in addition to regulations with teeth.   But I'm a terrible socialist.  ;-)

              Against stupidity, the gods themselves contend in vain.

              by I love OCD on Tue Dec 08, 2009 at 07:18:39 PM PST

              [ Parent ]

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