We should all see something tomorrow about the new banking and investment regulations that the Obama administration will make public. This, while not yet law, will be very interesting to read. It will give us some idea as to how much real change we might expect from this administration and Congress. If they have done nothing about the credit rating agencies and how they do business, then it will be just a matter of time before the next bubble becomes a reality and the American people are once more exploited by those greedy bastards on Wall Street. Believe me, you do not have to be an Einstein to figure out that as long as Wall Street is paying the credit rating agencies for the ratings they receive for the structured finance deals that they underwrite, mortgage-backed bonds, then it will be just a matter of time before another housing bubble appears. Besides the conflict of interest of the credit rating agencies, there is another point, and that other point is the lack of control of monetary policy by our central bank, the Federal Reserve Bank, of their monetary policy. Securitization has changed the ball game for The Fed, and, it has made their former tools of monetary policy inadequate in the 21st century.
Stay tuned.
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1 comment:
I'm nervous. I watched him today talking about his the whys and some of the time frame for the lack of regulations. Hello Nixon, Clinton, and Bush. Big bucks and agendas speak the loudest no matter what the consequences are for the people.
You might want to check this blog site out. I haven't gone too far back in his archives. Like to read. http://blogs.moneyandmarkets.com/the-dividend-superstars/
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