Financial Reform - Natural Unemployment - Goverment Bailout Monetizing Debt

We have had the global financial crisis, the bailout and sweet deals for the protagonists of it. Seriously was the GFC not the best thing that could ever happen to Goldman Sachs? This all happened with massive regulation, how did that work? How many rules and ethics were brazenly flaunted? So here we are more amendments and a new financial reform bill. Some no doubt bolster the bill others play into the ineffectiveness of it.

So how far are we going this time, just when you thought the healthcare train would give it a rest it is expected there will be more than 400 amendments thrown up this week to change the already voluminous Senate's financial reform bill. Who proposed the bill, why the great Country wide supporter himself Sen. Chris Dodd (D-Conn.), the chair of the banking committee.

If you are wary of the Fed and their unanswerable power of the Fed you have to be wary of Dodd. For example he touts that he is protecting the consumer with his consumer protection agency as independent but the Federal Reserve (those great protectors of the consumer) has oversight. Sen. Jack Reed calls for an independent and standalone agency, more bureaucracy but at least away from the bankers at he Fed.

What is a worry, like everything from Dodd it is reactionary as opposed to proactive and totally governed by today’s news? Dodd wants the Government Accountability Office to review "Repo 105" accounting scams. Where does that come from? No doubt we are seeing a knee jerk reaction to last week’s bankruptcy examiner report on Lehman Brothers accounting methods. That is the problem with overregulation is always being manipulated and playing catch up. Lawyers love it, politicians love that when they are trying to play good cop for the people. Like the way President Obama sells how giving millions to Bankers pockets is good for the people.

Sen. Richard Shelby (R-Ala.), has proposed 110 of those amendments; Sen. Bob Corker (R-Tenn.) has another 100 after not being able to come to a consensus with Dodd. I keep coming back to how; with Dodd’s failings is he in charge of amendments. He himself broke regulations, morally and ethically with his scandals. There is the rub with big government, it suits when it suits.

Senator Shelby wants a merger of the Securities and Exchange Commission and the Commodity Futures Trading Commission which would decrease waste and double regulation. An interesting one, with the GFC is Senator Corker’s would ban securitizing subprime mortgages altogether. Bankers wouldn’t like that one!

For Goldman conspirators there is Shelby looking to amend the powers of the new Council of Regulators to not implement tougher rules for non-banks and bank holding companies, This could be viewed as letting Goldman off the hook or actually not letting them manipulate said Council, which would be keeping with Goldman’s behavior. If you have any doubts look at Goldman’s involvement in AIG and their check from the US Fed/Treasury and their involvement in hiding Greece’s true debt. That’s just two of the biggest debacles/frauds of the past few years.

There is more for the Fed watchers with a Sen. Jim Bunning (R-Ky.), amendments pushing for "accountability and transparency reforms at the Federal Reserve".  Sen. David Vitter (R-La.), wants the President to report to Congress on any potential reforms of another GFC leak at Fannie Mae and Freddie Mac.  Sen. Charles Schumer (D-NY)  wants non-bank companies to come under a new consumer protection agency. 

Lets see where we are headed with this financial merger of the world financial network. We have seen over 400 amendments in the new financial reform. One suspects these will never see active enrollment particularly with likely Republican congressional control and a Democratic President. In Europe we have Germany pulling rank and the PIIGS putting their hands up for bailouts.