According to Sen. Christopher Dodd (D, CN), "this is about as important as it gets, because it deals with every single aspect of our lives."
Obama said, "We are poised to pass the toughest financial reform since the ones we created in the aftermath of the Great Depression. The bill represents 90 percent of what I proposed when I took up this fight. We've all seen what happens when there is inadequate oversight and insufficient transparency on Wall Street."
There are some people that think this is a good thing -- more government control into our lives. There is another group that thinks it already has too much. That group would include me.
The legislation is redrawing how money flows through the U.S. economy, from the way people borrow money to the way banks structure complicated products like derivatives.
-- It intends to prohibit banks from making risky bets with their own fundsIt implies a massive growth to the Federal Reserve, Commerce, etc -- more inefficient bureaucracy. The cost will be born by everyone as the federal fees imposed upon the large banks and hedge funds will be passed on. The proponents claim it is a temporary fee and will not be required after five years (right).
-- Limit the ability of federally insured banks to trade derivatives
-- Erect a new consumer-protection regulator within the Federal Reserve
-- Give the government new powers to break up failing companies
-- Create a council of regulators to monitor risks to the financial system
-- Set up strict new rules on big banks, limiting their risk and increasing the costs.
It could touch every person who has a bank account or uses a credit card
I tend to agree with Rep. Jeb Hensarling (R, TX): "My guess is there are three unintended consequences on every page of this bill."
There are no obvious limits on "too big to fail." They have left Fannie Mae and Freddie Mac in tack. Yea, that's real reform.
With limits on the big guys for making investments, what's the start-up to do to raise capital?
At least the banks and investment firms know what the rules are. They will now begin the process of figuring out how to circumvent them.
This is another example of good intentions that will have more negative repercussions than positive. It will cost everyone more money. It will make credit harder to raise. It will make America weaker economically. That's the Democrat way. We can read you like a book.