Posted on 07/22/2010 10:44:59 AM PDT by taildragger
"Whenever you get new laws and "reform," unintended consequences are sure to follow. Usually they take awhile. Not so with Dodd-Frank. WSJ reports that Ford has already yanked a bond deal, because the ratings agencies, fearing legal liability, won't let the automaker puts their ratings in the prospectus, making a sale impossible. So did Dodd-Frank just kill the bond market? Well, probably not.. Regulators will likely find some way around this impasse, but it's still amusing to see the bill INSTANTLY slow down the gears of capitalism (or at least capital raising) as its fiercest critics might have suggested."
(Excerpt) Read more at businessinsider.com ...
http://www.cnbc.com/id/38362939?__source=yahoo|headline|quote|text|&par=yahoo
http://finance.yahoo.com/news/Structured-Asset-Trust-Unit-bw-642706245.html?x=0&.v=1
The question is, is the exercising of the "Call" on the Bonds tied to what Financial Reform has done?
Are looking at a major error in the the Financial Reform Bill?
Will they fix it, or will the bond market and the bond agencies flounder and drift until this is addressed?
Government of the People, by the Morons.
Indeed! It may be a mistake to assume the consequence is unintended.
But this will effect all who goes for a Bond offering and need a rating and now the ratings agencies do not want the liability.
Oh, so then they would have to turn to the govt. for bonding?
How is that "unintended"?
see my tagline
This whole bunch of traitors needs to be marched through
the streets and hanged. Shame on all of them.
Screw the Obambi Marxists...
Collins ,Snowe, and Brown probably vote for this too.
“But this will effect all who goes for a Bond offering and need a rating and now the ratings agencies do not want the liability.”
Yep, yesterday my electrical contract company lost three future projects because they “lost funding!”
Basically, if the planners do not have 100% of the money for the project, they either dropped the project or put it on hold because they won’t be able to guarantee funding without a rated bond! DUH!
This is going to hurt almost every industries most likely immediately! But here is the kicker! Watch the MSM and Dems go after the American public with the claims that the “haves” are “hoarding their money and causing the economy to slow down!” Anyone want to bet? They have already made these statements, but I bet they get bigger and louder!
I can see it now: “Rich Republicans are hoarding more money to slow economy in an effort to help their election chances in November.”
TO say I am dissapointed in Brown is an understatement...
If Frank'nDodd's result was to create confusion and angst within the bond rating agencies, it's obvious the agencies will need additional "guidance". From the federales of course -- via additional regulation or legislation. Whatever these red bastards do is designed to create dependence on the feral government. First, create a problem; then offer a government solution -- to fix the government created problem. Round and round we go! Good work if you can get it.
Exactly right.
Brown is a RINO idiot!!
“First, create a problem; then offer a government solution — to fix the government created problem.”
I believe President Reagan said, “Government does not solve problems; Government subsidies them!”
Could Ford not sell its Bonds in an overseas market and ignore the US security laws? Methinks raising capital may easily slip offshore to the great detriment of NYC. Is this another unintended consequence of nannyism? Is there some law that requires capital raised by US firms overseas to be handled by the moneychangers in NYC?
I give these red bastards ZERO credit for anything remotely resembling Constitutional allegiance. Anything and everything they do in association with the kommies in odinga's administration is designed to place government in control. Frank'nDodd need to be marched to the gallows at dawn after a speedy trial. Benedict Arnold, along with a string of other traitors did less harm to this country than these card carrying idiots have done.
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