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KQµårk 死神 On November - 10 - 2009

no_fed

I think the Fed is being scapegoated to some extent, but like the CIA failures, the financial system collapse did happen on their watch and I support Congress in creating new financial oversight agencies to prevent future financial collapses (to handle “too big to fail” institutions), re-regulate the financial system and give financial consumers much more protection. Because of the greed is good mentality on capital hill with some misguided populism mixed in, I think legislators are just as much to blame as the Fed for the housing bubble. Ironically the Obama administration was leaning towards creating new oversight agencies at first but Congress pushed back however then when they came out with a plan to expand Fed oversight then Congress reacted to the populist outrage.

I don’t know any specifics about the legislation but I do think creating oversight agencies is the best tact to protect financial consumers, to re-regulate banks and expand regulations to non-banking institutions within the financial sector. Obviously it’s better political strategy to separate these powers from the Fed as well. But make no mistake there will be plenty of push-back from lobbyists and their corporatist slaves to defang this new agency as much as possible.

Senate Dems move to curb Fed’s powers

“Senate Democrats on Tuesday proposed stripping the Federal Reserve of its supervisory powers and creating instead three new federal agencies to police banks, protect consumers and dismantle failing institutions.

The 1,136-page bill, released by Senate Banking Committee Chairman Chris Dodd, would represent a significant shift in power in federal oversight of the U.S. market. The Fed has been a dominant figure in managing the economy, although many lawmakers blame the central bank for not doing enough to prevent last year’s crisis.

“We saw over the last number of years when (the Fed) took on consumer protection responsibilities and the regulation of bank holding companies, it was an abysmal failure,” said Dodd, a Connecticut Democrat.”

Ron Paul will be happy the Fed will not be part of the new agencies but his “free market” principles will prevent him from supporting the new agencies for sure.

Church-of-the-Woo-Woo 1

Categories: Featured, The Economy

Written by KQµårk 死神

My PlanetPOV contact is [email protected] Proud Dem whose favorite hobby is cat herding. The GOP is not a political party, it's a personality disorder. Cancer, Heart Failure and Bush Survivor.

12 Responses so far.

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  1. nellie says:

    I took me a little while to rev up for this post because, as a former economist, talk about the Fed just scares me silly. Monetary policy is such smoke and mirrors in my pragmatic brain. I never could see the feasibility of it, and the more I know about it, the sharper the pangs in my temples.

    So I’ve kept the uproar over the Fed at arm’s length. My instinct is to nationalize the institution. But then, my instinct is to nationalize the banks. I think of our financial security as part of the commons rather than a “buy and sell” sort of product. I even think banking should be a non-profit exercise. But I guess I’m a little radical that way.

    I only hope we get some real banking oversight. We need it at so many levels, from overdraft fees to multinational mergers. We’ll know how good the reforms are based on how hysterical the doom sayers become in response to the proposed changes.

  2. KQuark says:

    Well I see that the banks are not a progressive issue from the tepid response to this post. Banks are just a means to an end and not a progressive issue as much as Bankington Post would want you to believe. Regulate the greedy bastards and get it over with already. But thinking banks can be run by progressives or be progressive is just an Aryanna obsession because all she cares about is HER money.

    Off to more progressive issues like maintaining a woman’s right to choose, universal healthcare, green energy, social justice, etc…

    • bitohistory says:

      KQ,”Its not a ‘sexy story! I find this THE most important point concerning both the crashes in history and the for the recovery of the our economy now, Including everyone posting and commenting here.
      You can believe the “Big Boys” of Wall street are on this like fly’s on chit and they are trying to buy their way out of any regulations/restrictions.
      If you get a chance, please read this: http: //reclaimdemocracy.org/personhood
      I have over 2 pages(of story liks) on this topic and I would really like to write a coherent and compelling post on this subject

  3. kesmarn says:

    Dylan Rattigan today interviewed a Congresswoman (Cantwell was the last name; can’t remember the first) who is introducing legislation to regulate the derivatives market, which, they both agreed involves many trillions of dollars. I can only imagine the awesome array of shock-and-awe-type fire power the lobbyists are going to line up against HER!

    • KQuark says:

      Maria Cantwell is doing a great job leading the fight, she is also one of the Dems fighting the Stupak amendment.

      • kesmarn says:

        KQuark, thanks for supplying Maria Cantwell’s first name! And the additional info about her. I have to confess that I knew next to nothing about her until today, but I was impressed with her comments this a.m.

        Sorry for the long delayed reply, but I was out much of the day. I find myself zooming to the computer as soon as I get home to see what I missed here. Potential addiction alert!

  4. bitohistory says:

    I really need to research these proposals but so far I have heard mostly good comments on them. The one problem I have with new regulations is “will the regulators be fully funded? During the S&L crises, a banker told me ” It was not due to a lack of regulations, Reagan/Bush did not fund the regulators, they didn’t have enough experienced people to look at the books.” What I would like to see is a transaction fee on every exchange on a share of stock to fund the regulators.

    • KQuark says:

      Wow great point I did not think about that. I know staffing has been a problem because the party of NO is blocking appointments and they have had staff shortages before but I never tied together the need for funding. Take some money from the bloated DHS.

      BTW I see Huffy again trying to build their own narrative about the banks AGAIN. Sekoff was on with Ed Schultz complaining about the Obama administration not stopping Wall Street bonuses. They are now trying to make the news rather than report it. Little mention of the new agencies and regulations of course. Just being the new reactionary huffy progressive again.

      • bitohistory says:

        oops. double post.

      • bitohistory says:

        I’m not for taking money from any agencies (too many fights) but I do believe that the money changers should pay for their mistakes. Past and in the future. As for Ed Schultz, he’s beginning to show too much ignorance of legislative history and wanting to grab some headline. He thinks it’s a big deal to get a story on Huffy. He was doing much better when he was broadcasting from the “Center for American Progress.” IMO

        • KQuark says:

          I use to like Ed Schultz more because he was different more of a blue collar Dem. But I think with most group, group think sets in and everyone starts sounding the same. He now sounds like a whiner like all the progressive pundits do these days. The problem is they have to talk about something every day which means they have to come up with a new criticism every day to stay relevant.

          • FeloniousMonk says:

            KQ, I think that Ed is just so disappointed in the house bill like many of us. But he was really bummed out the last few days. I look on him as being the blue collar revival type political rooter. Even when he’s pushing small business issues (which need the push, IMO) I’m suprised he had issues with Barney, but he is staying true to his principles.


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