The financial reform bill currently working its way to the desk of Barack Obama's signature is touted as the biggest reform of the banking and securities since the Great Depression. But the new regs will be no more effective than that in the context of something to replace or prevent the next big panic at least three reasons. 1 new watch dog, old tricks you create a new consumer watchdog agency to protect consumers from their own stupidity should protect.At this point, fewer choices when it comes to credit cards, loans and other financial transactions is critical. 2 Never too big to fail, replace "Too big to fail" with ... "Too big to fail". One of the reasons for the large financial institutions played Russian roulette with the economy because it was bet, would be saved. This is exactly what happened. The new rules codify the idea that the government so that some institutions can never fail. And ifAccording to her, not the big play the system, then it is not clear as Citigroup, Goldman Sachs, et al have gone through the current crisis. 3 Housing Bubble Trouble The financial crisis was triggered off by government policy that people put houses that encourage them to prices that have not been sustained, could afford to buy. Desperate attempts to keep people from homes and keep interest rates at an effective rate of zero, requiring the government to rain more moneyThe ...
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