More “Sweeping Changes” (Isn’t That the Same as “Bold Moves?”)

Wednesday, June 17, 2009
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Obama calls this “a heavy lift.”

Mr. Obama confirmed that the overhaul, which he wants to complete this year, includes giving more power to the Federal Reserve to police large, systematically important institutions, allowing the government to break firms apart, implementing new rules for complex instruments and creating a new federal agency to oversee consumer products such as mortgages and credit cards.

…Mr. Obama, whose economic team has been crafting the overhaul for months, said inadequate regulations, coupled with a vast culture of greed and an explosion of complicated financial instruments, induced excessive risk taking and helped trigger the economic crisis. The remedy, he said, is a “sweeping overhaul of the financial regulatory system” on a scale that hasn’t been seen since the Great Depression.

…One new detail is that any large, interconnected company that the government wants to take over and break up could be pushed into government seizure by the Treasury Department, if certain conditions are met. Once taken over, the companies would typically be run by the Federal Deposit Insurance Corp., but the proposal gives the government discretion to change the way this might work. The Treasury has said these powers were necessary, but the details of how they would work were unveiled for the first time in this proposal.

We already knew this, but each day the details become more accessible. Full-on financial socialism, with Benito Obamalini at the helm, keeping us all safe, secure, and prosperous. On that note, have you looked at Belize, Costa Rica, Panama, Uruguay, or the Philipines yet?

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