The financial reform bill has the potential to put the proverbial “final nail in the coffin” for our economy:
Because of the authors “financial insights” (The Frank and Dodd team which helped cause the financial crisis by their work to “open doors of opportunity” to those that were not able to afford the mortgages they got for homes they couldn’t afford), hedge funds will be strickly limited. Also, bonds will also be highly regulated and limited.
The three largest credit-rating agencies – Standard & Poor’s, Moody’s Investors Service and Fitch Ratings – immediately alerted bond issuers not to use their ratings, as they assess their legal exposure created by the bill.
Why is this an issue? Because it will adversely affect the $1.4 million bond market – which is largely comprised of consumer loans.
If you get a loan to buy automobiles or houses, pay for schooling (student loans) or use credit cards – you’re going to be standing in a line waiting, or flat out refused credit because the consumer loan well has dried up.
And what kind of affect will that have on our consumer-driven economy?? Devastation.
And what about the farmers that use hedge fund derivatives as insurance against the cost of corn dropping before harvest? Or the cost of beef for the feedlot owner or the farm co-ops trying to make amends for the increases in diesel fuel for all of the trucks hauling livestock/produce? Sorry, you’re out of luck. Might as well take up gambling in ‘Vegas.
And what great words of encouragement comes from the grand masters that designed this financial reform that will make sure we never have to bail out anyone again (or, as President Obama said, “Because of this law, the American people will never again be asked to foot the bill for Wall Street’s mistakes. There will be no more taxpayer-funded bailouts. Period.”)?
In an interview with The Washington Post, Dodd admitted legislators were uncertain exactly how the bill will work until it is challenged by another financial crisis:
“No one will know until this is actually in place how it works,” said a teary-eyed Dodd. “But, we believe we’ve done something that has been needed for a long time. It took a crisis to bring us to the point where we could actually get this job done.”
HUH??? You mean you’re “guessing”??? You have absolutely NO CLUE what this legislation will do???
Sounds like Nancy Pelosi when asked about Obamacare: “We need to pass ObamaCare so that the public can find out what’s in the bill.”
HUH??? You have no idea what this bill will do???
PLEASE! WE need someone to give a brain transplant to Congress!!!
Read the articles and weep…
Finance Overhaul Casts Shadow on Plains – WSJ.com.
http://online.wsj.com/article/SB10001424052748704258604575361182317501188.html
–PAT