Posted on 09/24/2012 3:41:21 PM PDT by neverdem
Without its repeal, the economy will continue to struggle.
There are always people who believe that Washington's actions are immutable. Yes, they say, the people can elect Republicans who pledge to overturn Obamacare, but when the smoke clears much of it will still be standing. And sure, we have a deficit crisis, but Paul Ryan's budget -- or any other entitlement reform -- will never get 60 votes in the Senate.
And Dodd-Frank? Mitt Romney has pledged to repeal Dodd-Frank. Legislation has been introduced by Republicans in both the House and Senate to bring that about. Yet sophisticated commentators tell us that the buzz cut we need will really be just a light trim around the edges. If that's how it goes, the Romney administration and the Republican Congress that might take office in 2013 are likely to find themselves in as much economic and job trouble in 2014 and 2016 as Barack Obama finds himself today...
--snip--
Finally, significant parts of Dodd-Frank are being challenged on constitutional grounds, and just about every major regulation will be challenged in court on grounds that the agency did not have authority under Dodd-Frank to impose it, that the regulation is arbitrary, capricious or unreasonable, or that it cannot pass a reasonable cost-benefit test.
In other words, the uncertainties associated with Dodd-Frank will go on for years. So the question must be asked: if Dodd-Frank is not repealed, will even the Republicans be able to revive the economy?
(Excerpt) Read more at spectator.org ...
Having worked inside the financial industry, we really need strong regulations. The dismantling of many of the safeguards in the 90’s led to what we see today. For example, Derivitives on financial instruments exceed the total amount of the financial instruments by exponential levels. Not saying this is the end-all, be-all, but we just cannot go back the way we were.
I agree! We also need to reinstate the Wall St. uptick rule and the Glass-Steegle Act. We also need to once again separate commercial from investment banking. JMHO
There are some things in Dodd-Frank that make sense, and a lot that doesn’t or is inherently unimplementable. The statists on both sides of the aisle in DC seem to believe it is possible to remove all risk from the financial markets, while retaining all the associated benefits.. This is a fool’s errand.
A much better plan would be to 1) Break up the big Manhattan banks into 20 or so smaller banks so that no one of them is large enough to take down the system, and 2) Outlaw bail-outs forever. Bail-outs are a de facto subsidy for financial imprudence, and if they were removed, Wall Street would have to reform itself from within just to survive.
Correct on uptick and Glass-Stegall. I am a former bank regulator and current community banker. Dodd-Frank, over time, will make community banks extinct. It stacks the deck in favor of their money center banks. Community banks will have a very hard time coping with the massive regulation, vastly increased compliance costs, and government-created risk. It MUST be repealed or the leftists will have complete control over banking.
I’ve been unemployed for months mow after having the same job for 16 years. My job loss is a direct result of Dodd-Frank and it had NOTHING to do with any bailouts.
“Having worked inside the financial industry, we really need strong regulations”
Tried to get a mortgage lately?
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