Posted on 09/29/2008 7:54:23 AM PDT by VOA
WASHINGTON (AFP) — The head of the US financial regulator SEC
has blamed a voluntary monitoring program for major investment banks
as a cause of the global financial crisis and said he was
shutting the program down.
"The last six months have made it abundantly clear that voluntary
regulation does not work," the chairman of the Securities
and Exchange Commission, Christopher Cox, said in a statement
released Friday.
(Excerpt) Read more at afp.google.com ...
“The head of the US financial regulator SEC
has blamed a voluntary monitoring program for major investment banks
as a cause of the global financial crisis and said he was
shutting the program down. “
Quite serious action by mr cox, considering that, once mer is gone, there is no one left to monitor!
Well I did find the line about the Federal Reserve taking over
much of the SEC’s regulatory authority interesting.
And wonder if it’s reasonable to ask “Why do we have an SEC anyway?”.
And I suspect some folks will be bothered about more power being
vested in the Federal Reserve.
That may have fed it, but it didn't cause it. That would be like saying that wood causes fire.
What caused this mess is the "private/public partnership" between the Feds (mostly, but not entirely, Democrats) and and Fannie/Freddie. That mechanism essentially enabled our financial institutions to avoid the risks of reckless behavior by privatizing profits and socializing losses.
That mechanism, corrupted and extorted by the Community Reinvestment Act, created an inevitable black hole to suck up the nation's wealth.
This is the same Federal government that tells us which light bulbs we have to install and how much water per flush our toilets can use.
The finger pointing regarding blame is amusing by government.
Can’t wait until they enact universal health care and that fails.
We have a financial crisis caused by a very high number of undersecured loans to borrowers. Some refer to these loans as "Toxic Debt". The lenders who made these loans face bankruptcy and total loss due to their greed, bad business practices and terribly bad government regulations that encourage this conduct.
To address the problem I have relied on the collective wisdom of The Three Stooges my advisors who bear much of the responsibility for the crisis, Paulson, Bernanke and Cox.
They agree that the way to address this crisis is to make a very high number of undersecured loans and to purchase a very high number of undersecured securities from their friends and cronies in the industry the lenders who now face bankruptcy or worse.
This will ensure that the lenders recover their losses. We do not know if it will end the crisis but we do know that your children and grandchildren will have to pay off this record breaking government handout to the wealthy financial assistance program over a period of many years.
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.