Opening Pandoras box of bank regulations

Anyone who has studied the stock market of the past 30 years knows that the steepest ascent started in 1994 at the later part of the year when the Newt Gingrich Contract with America was voted in. That contract had as one of its planks the rolling back of Depression era laws and regulations that put a firewall between securities, banking and insurance. The removal of those constraints -- unleashed the same forces that caused those firewalls to be put in 60 some odd years earlier. A Vertical ascent followed by collapse. Everyone likes the ascent part no one likes the descent one. With Paulsons new recommendations to overhaul the FEDs powers those depression era regulations will come back into the debate and into the equation. We have seen first hand that banks and brokerages cannot be trusted to self police self regulate. Simply not human nature to do so. Paulson will unleash a regulatory firestorm debate on what the new rules should look like.

your history reminder is valuable. and i agree with the 1994 part, too. however: listening to paulson, be assured it is ALL GAS. not this month and not this year, he says, will anything be done. and not until the crisis has passed, will anything be done. LOLROTF !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! that means the investment banks will continue to get a free ride. they are gambling that the crisis will be over before the new administration gets traction - that could be a year and a half from now. by then, they hope that the turmoil will have died down and/or other issues will overshadow and interest in the whole thing will be lost and any reforms will die a slow death. remember: PAULSON IS FROM AND WITH GOLDMAN SACHS !!!!!!

Edited by humble1, 31 March 2008 - 09:36 AM.

The market is speaking volumes (pun intended) about how much this proposal really matters. Like I said Friday night, this has no affect on the present issues. To quote Shakespeare, "It is a tale told by an idiot, full of sound and fury, signifying nothing."

Edited by milbank, 31 March 2008 - 10:21 AM.