Discussion for article #243090
When I read the heading, somehow I heard this in my head:
âIt depends on what the meaning of the word âneededâ isâŠâ
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Hillary Rodham Clinton says she is willing to split apart big financial institutions should the need arise.
538Liberal, your comment is more subtle and, therefore, better, than what I would sayâŠwhich is:
Dammit! The need is HERE!!!
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Exactly. And it would be her own definition of âneededâ.
Her high unfavorables are mostly her own doing.
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Iâve heard her answer several times that Glass-Steagall would not have prevented the 2008 meltdown. Have I missed it where she has described how we might avoid it in the future? Other then the general clichĂ©s about tougher regulations which usually means nothing?
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With 60% of the voting population choosing the identical franchise status of slaves, I am a little jaded about this business of âwhat it takesâ to be elected.
The 40% who normally DO vote tend white, racist, Reactionary and OLD.
Bernie is making a stab at animating the so-called âpeople who normally do not voteâ
Or is it possible?
Hillary is looking over her shoulder at
Irene Independent and Umstead Undecided
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She has said she would build upon Dodd-Frank, which was passed in 2010 in the wake of the Crash of 2008.
And make no mistake, Dodd-Frank reform has had an impact: Systemically large (âtoo big to failâ) financial entities are facing greater scrutiny, banks must meet higher reserve ratios, pass stress tests, and make out âliving willsâ in the event of their failure, the Volcker Rule limits proprietary trading by banks, and a consumer financial protection bureau roots out fraud and abuse.
And Dodd-Frank regulates not just the commercial banks but the entire financial sector. It is one reason why General Electric is selling its financial arm â GE Capital â to avoid the scrutiny and tighter regulations imposed on Too Big To Fail institutions. And itâs why Metropolitan Life Insurance â Metlife, with the cute commercial featuring Snoopy â is fighting its designation as a Too Big To Fail institution by the federal government.
Remember, the Crash was precipitated not by the biggest banks but by investment banks that were not among the Top 10 biggest. Reckless speculative investment led to huge exposure to unregulated markets in exotic financial instruments such as derivatives, mortgage backed securities and reverse swaps.
Lehman Brothersâ collapse, and the failures of Wachovia, Washington Mutual, and Countryside â among the most active sellers of exploitative sub-prime mortgages, and none of them in the Top 10 â led to a panic which resulted in the Crash .
When these firms collapsed, the federal government prevailed upon some of the biggest banks to absorb them so as to contain some of the damage caused by a systemic failure â which accounts for the fact that some of the largest financial institutions are now larger than they were in 2008.
The banking crisis was due to decades of deregulation, and work remains to be done to shore up the compromises that were necessary to getting Dodd-Frank passed. After decades of stability in the finance sector thanks to the series of regulations passed under FDR, the economy suffered from a series of deregulations, first with credit card interest rates in the late 1970s, then with savings and loans in the 1980s, the failure to regulate derivatives in the 1990s, the 1999 repeal of the Depression-era Glass-Steagall Act â which had created a firewall between commercial banks and investment banking â to the rise of unregulated payday loan and other short-term loan and check-cashing firms that prey on the poor and marginalized.
And after the dot-com bubble burst in 2000, investors worldwide withdrew from the stock market and were directed to investments backed by American real estate. Soon, unsound sub-prime mortgages were packaged into securities, marked triple-AAA by corrupt ratings agencies, and sold to an unsuspecting global market.
Itâs taken years to recover from the crisis, but in the past year in-depth and comprehensive proposals have been proffered by Hillary Clinton, Senator Elizabeth Warren, former Federal Reserve Chair Paul Volcker and former Rep. Barney Frank. These involve, among other proposals, a tax on high-speed trading to disincentivize purely speculative investments, looking at regulations that consider the complexity and interconnectedness of large financial firms, and not just their bigness, and limiting the use of taxpayer-insured deposits in proprietary trading by banks.
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Its needed HillaryâŠits very much needed. And while weâre at it, media consolidation needs to be broken up too. Is there a proposal on the table to do that?
http://www.businessinsider.com/these-6-corporations-control-90-of-the-media-in-america-2012-6
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Itâs needed NOW, Hillary. We canât wait until theyâve destroyed the global economy AGAIN. These companies are essentially WMD that will take us all out, sooner or later.
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She would NEVER do that. They own her.
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She wouldnât do it. But I guess itâs nice to hear her say it.
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This right here seems like a bigger deal than it might appear. I thought the point of the stock market was to raise capital so companies could actually invest in their own infrastructure, which would mean youâd have to put the money in and leave it there a while, which is the exact opposite of the day-trading mentality, and too many companies going public in the first place and then blaming every decision on the need to please stockholders.
Thanks Randy, great re-cap.
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Actually in the first debate, she laid out some proposals re âshadow bankingâ --where the original weaknesses were first experienced, e.g. AIG. Sounded interesting.
The NYT is trying a big hit piece on her re her 'ties to Wall Street" forgetting sheâs profiled Elizabeth Warren for a major news magazine, and she hasnât wavered on a lot of other economic proposals. But the NYT commenters were shockingly pseudo progressives who almost all said theyâd vote for TRUMP instead. Talk about trollsâŠ
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Agreed. Additionally, nice post yourself.
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OCCUPY should have also dealt with Media.
Thanks very much for your post.
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Great Post.
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As Bernie has stated, Hillary Clinton is an infinitely better choice than any of the Republican aspirants. However, that bar is so low itâs in the mud. If sheâs the nominee, Iâll vote for her with a small bit of reservation. We all have to think of the SCOTUS, and how screwed this nation would be if another GOPer gets into the White House and loads the court with more right-wing ass clowns,
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Thank you for this post. I have learned more about Dodd-Frank nitty-gritty in an understandable way than from anything else that I previously read or heard! And now, I actually feel better about it.
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I hope that she has the convincing message and forceful appeal to get the job done. Hope for the best, expect the worst.
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Agreed. I just wish he would go at her much harder. And now sheâs pulling this stunt, which is doing nothing more than stealing one of Bernieâs major wedge issue that clearly draws a distinction between the two. Sheâs trying to have it both ways now and if he canât say that forcefully and pointedly and also accuse her of saying anything to win the nomination, then Bernie deserves to lose.
But youâre right, on 1/20/17:
Scalia will be 80 yo
Kennedy will be 80
RBG will be 83
Breyer will be 78
It wonât really affect me but my two Millennial sons will be seriously affected (in a good way hopefully) as will their future families - especially the women.
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