President Obama appearing energized from Friday’s House passage of financial / banking overhaul legislation, chastised banks and their lobbyists for opposing legislation that would in the future greatly diminish the chance of the United States facing another near economic meltdown.
By a vote of 223-202, the legislation passed by the House would grant the government new powers to (1) split up companies that threaten our nation’s economy, (2) create an agency to oversee consumer banking transactions and (3) shine a light into the shadowy world of financial markets.
In his weekly radio and Internet address Saturday, President Obama stated the economy is only now beginning to recover from the "irresponsibility" of Wall Street institutions that "gambled on risky loans and complex financial products" in pursuit of short-term profits and big bonuses with little regard for long-term consequences.
"It was, as some have put it, risk management without the management," the President said.
For many in the United States, it was as though the bankers and Wall Street were playing a game of “Monopoly”, except the money that they used for buying, selling and trading for property on “Boardwalk” and “Park Place” was money that was also connected to financial institutions and corporations that were the pillars of our country’s economic foundation and stability.
And now, hundreds of billions of dollars were tied into and intertwined with risky business ventures; ventures that if unsuccessful, could plunge our country and part of the world into a economic depression.
To hard working tax paying Americans whose tax dollars went to bailing out the Banks and Wall Street, it seemed as though “Daddy Warbucks” had made a re-appearance in the 21st century.
President Obama is looking for a swift approval in the Senate "because we should never again find ourselves in the position in which our only choices are bailing out banks or letting our economy collapse."
No House Republicans voted for the bill, and 27 Democrats voted against it. Opponents argue that the broad legislation overreaches and would institutionalize bailouts for the financial industry.
Last week, top House Republicans urged more than 100 financial industry lobbyists to work harder to defeat the bill.
Lobbyists have so far spent more than $300 million this year trying to wreck the bill. Opponents of the bill say that the changes would limit consumer choice and that added federal oversight would stunt financial market growth and innovation. President Obama suggested that the risk involved was well worth not having the threat of another economic collapse created by a lack of banking and Wall Street transparency.
"Americans don't choose to be victimized by mysterious fees, changing terms and pages and pages of fine print. And while innovation should be encouraged, risky schemes that threaten our entire economy should not," he said.
"We can't afford to let the same phony arguments and bad habits of Washington kill financial reform and leave American consumers and our economy vulnerable to another meltdown."
As always Louisianans, the Examiner.Com is interested in what you think. Do you believe that Banking and Wall Street practices should be looked at more closely by the government? And do you believe that Banks and Wall Street still haven’t a clue as to why the pubic doesn’t trust them? Inquiring minds want to know. Sound off.
Until next time Louisianans, Good Day, God Bless and Good Fishing.
http://www.reuters.com/article/idUSTRE5B90CY20091211?WT.srch=1&WT.mc_id=financialbill
http://http://www.wired.com/techbiz/it/magazine/17-03/wp_quant?currentPage=all
Comments
Yes, they should be scrutinized even more. They weren’t called, “Robber Barons’, back in the day for nothing. If you or I ever tried to be as financially creative as the Wall Street bankers were, we would have been under the jail so fast our heads would still be spinning.
They know why the public doesn’t trust them. They don’t trust each other, and with good reason. The public knows why they are spending so much money on lobbyist too. It’s because they have so much more to loose.
While we are on the subject: When did we the people abdicate responsibility for the governance of this country to them? Did we vote them in via a secret election? How do we get rid of them? “(Inquiring minds want to know”)
The housing market was definately 'fueled by greed' and there was over-leveraging in the secondary markets for subprime loans but liberal politicians are the last ones who have a right to complain!
The seeds for this mess were planted in the Clinton administration when it started dictating when mortgage lenders could lend which helped create the high risk subprime loan market.
Bush tried 17 times to get more oversight of Freddie Mac and Fannie Mae. He wanted a regulatory agency created to 'oversee' them, but no democrats would support it.
Lib politicians forcing lenders to make questionable loans and blocking tougher regulations, were a major cause of the financial crisis we're in now, and they are taking "NO" responsibility for it.
EtsamaN,
RE: Your post on the "Law & Order" article
You may prefer to only get your news from 'liberal' sources, but you will never get the whole truth. Ignorance is bliss I suppose, if the truth upsets you. As for me; I just want to know!
Gigi:Bush tried 17 times huh? What planet are you living on? Give me a F@@k@ng break. This meltdown did not happen on Clinton's watch.
Carol,
Turns out I was wrong, Bush tried 17 times in 2008 alone, he also tried in 2003 and 2005. I don't know if you can google from 'other planets' but I do know that you can google from earth and that's all you need to do to verfiy what I've written (much of it is on youtube) But you'd prefer to swear at me and insult me than to simply check out the facts. That is what I don't get!!!!
P.S. I never said the 'meltdown' happened on Clinton's watch. I said the 'seeds were planted' and it is simply historical fact which also can easily be verified...
Gigi sorry about the swearing. I am really tired of people pointing the finger. Although you noted Clinton planted the seeds, the republicans in congress had a chance to turn this around and they did not do so. Both sides share the blame.
Carol,
I agree that both sides share the blame, but they aren't 'taking it'. And right now it's the libs in power. They are blaming it all on the 'private sector' and pretending that 'they' had nothing to do with it. That is what disgusts me. And as long as we let politicians get away with it, they are going to continue to be corrupt!
Good reporting and explaining of the effect of the legislation. That's right. Make it plain for us. Thank you.
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