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President Obama's Historic Overhaul of Finance Rules

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    DaedalusDaedalus Registered User regular
    edited June 2009
    Russell wrote: »
    OK, here's a portion of the interview I linked on the last page re: the level of governmental intervention:
    JIM LEHRER: What about those who are now saying, "OK, fine, you did all this, but the end result is going to be the U.S. government's going to be running automobile companies, it's going to be running banks, it's going to be deciding how much money people make on Wall Street." It's essentially we've got a government-run not only economy, but a country in every nook and cranny there is.

    TIMOTHY GEITHNER: I don't think that's a viable criticism, but let me do each of the pieces of that.

    JIM LEHRER: OK.

    TIMOTHY GEITHNER: In the financial sector, the financial markets require well-designed regulation. We did not have well-designed regulation. We had the worst financial crisis in generations because of basic failures in the design of regulation.

    So our job is to get those better. And it's not going to require more of them; it's just going to require better design, more effectively applied, more broadly applied to contain risk, protect consumers.

    In the financial sector, we've taken a very limited investment only where necessary. And you saw two weeks ago -- in fact, yesterday, we got $70 billion in capital back from some of the nation's major banks. We had another $70 billion raised by some of the nation's major banks from the private markets so that we don't have to be in there.

    We are working as hard as we can to make sure we get out of those investments as quickly as possible because we do not want the government of this country in the business of running those private institutions. That's not good for the taxpayer, not good for the economy.

    And the automobile industry, as well, again, exceptionally reluctant actors in that context. And we've had to take, for unavoidable reasons, an equity stake in those companies, but we're not going to get -- we're not going to run those companies. We're not going to get involved in day-to-day management. And we will get out of those as quickly as we can.
    I like Tim, I don't know why, but I trust him.

    I think rational people will watch the situation until the economy has clearly improved then expect the government to exit if it hasn't already. I think the Republican hullabaloo about government take-overs is 1/2 generic distrust of democrats and 1/2 trying to seed discontent.

    They want to distract everyone from remembering that they're the ones who fucked it up and the other team is the one who's fixing it by whining on TV with a bunch of hand-wavy bullshit about how now the government is going to control every financial transaction you make, stop you from going to the doctor's office, install cameras in your bathroom, and shit in your breakfast cereal.

    Polls are showing that it's not working, so I wouldn't worry too much yet.

    Daedalus on
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    PeekingDuckPeekingDuck __BANNED USERS regular
    edited June 2009
    I think you should research the topic more D. Both sides have done a bang up job in allowing this situation.

    PeekingDuck on
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    DaedalusDaedalus Registered User regular
    edited June 2009
    Hey, don't get me wrong, Clinton wasn't exactly the brightest knife in the drawer either, and don't get me started on our sorry excuse for Congressional leadership, but if this had happened under a president who didn't piss away a big budget surplus on tax breaks, well, we might be in just as much deep shit but at least we'd be head up instead of head down.

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    PeekingDuckPeekingDuck __BANNED USERS regular
    edited June 2009
    I can agree with that. (don't tell anyone though)

    We're in a hell of a spot though, I'm just going to make my monies and get out. I think the middle class is D-E-D ded. :)

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    MatrijsMatrijs Registered User regular
    edited June 2009
    I can agree with that. (don't tell anyone though)

    We're in a hell of a spot though, I'm just going to make my monies and get out. I think the middle class is D-E-D ded. :)

    Ironically, this is probably very bad news for the wealthy. The harder the middle class get fucked, the more likely they are to agitate for shifting their tax burden onto the wealthy.

    Matrijs on
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    PeekingDuckPeekingDuck __BANNED USERS regular
    edited June 2009
    I don't think you understand how the game works.

    PeekingDuck on
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    His CorkinessHis Corkiness Registered User regular
    edited June 2009
    Safety in exchange for mediocrity. I guess it depends on the person as to what they'd prefer.
    I'm sure if you did an investigation into the US financial system 3 years ago and discounted all of the fake value, it'd look pretty mediocre indeed.

    Edit: Deregulation allows subterfuge such as what caused this crisis, which prevents actors from acting in their best interests as they don't know what things are really worth, which prevents the market from operating efficiently.

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    PeekingDuckPeekingDuck __BANNED USERS regular
    edited June 2009
    Yes, transparency is good.

    PeekingDuck on
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