Financial reform law still in the works this week
Reuters reminds us financial reform law still in the works:
Although a final vote is expected within days on the White House’s top domestic priority, lawmakers have yet to settle disputes on regulating over-the-counter derivatives; curbing risky trading by banks; and the power of state authorities.
There will need to be resolution on these topics before the Senate can approve a massive Democratic bill designed to make the financial system less prone to crises like that of 2007-2009.
Analysts say that could occur as soon as Wednesday or Thursday. Delays could postpone full approval to next week, however.
Major votes on amendments looked unlikely on Monday or Tuesday, due to primary elections involving senators Blanche Lincoln and Arlen Specter, both Democrats. Party leaders were expected to avoid close votes on controversial measures while the two were away on the campaign trail.
A financial reform bill needs only two provisions inorder to curb the recklessness of the past several years that had been exhibited by the financial industry. Number one, an amendment to the Constitution prohibiting the government from any interaction with private industry that remotely resembles a bail out. Let the chips fall where they may and be sure to include a clause holding officers of a corporation personally responsible for severe losses caused by such reckless business practices. In addition all income over $500,000 should be taxed at a high enough rate to make such incomes appealing enough that some shmuck will be willing to bet “the farm” in order to amass a quick personal fortune. A king’s ransome should take more than a year or two to earn.
That should have read, unappealing enough.
No matter what one does in legislation memories fade in 15-20 years new bright young bankers will come up with brilliant ideas that appear to make a lot of money until the explode. This has happened many times in the past, it appears that the coffee fed to bankers destroys their brains. The bankers get on a bandwagon and follow the herd. If you try to fence it off the bankers figure out a way to tunnel under the fence (shadow banking system etc). If they have to dig a tunnel they will.
Of course the bankers are abetted by our national trait of get rich quick. (Ca was founded as a get rich quick scheme a gold rush, as was Nv,Co, Mt, and to a lesser extent other western states). Everyone thinks they can get off the merry go round before it explodes, but often are unable to avoid the explosion.
Exploding merry-go-rounds? Why wasn’t I notified?