HFNY
Well-known poster
And increase capital requirements. I agree:
ft.com/cms/s/0/4d55622a-44c8-11e5-af2f-4d6e0e5eda22.html#axzz3jCqRUKBI
ft.com/cms/s/0/4d55622a-44c8-11e5-af2f-4d6e0e5eda22.html#axzz3jCqRUKBI
Greenspan says dump Dodd-Frank
- Thread starter HFNY
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HFNY
Well-known poster
Lots of good nuggets at the end of his opinion piece:
"An important collateral pay-off for higher equity in the years ahead could be a significant reduction in bank supervision and regulation.
Lawmakers and regulators, given elevated capital buffers, need to be far less concerned about the quality of the banks’ loan and securities portfolios since any losses would be absorbed by shareholders, not taxpayers. This would enable the Dodd-Frank Act on financial regulation of 2010 to be shelved, ending its potential to distort the markets — a potential seen in the recent decline in market liquidity and flexibility.
Well-capitalised banks need to be less fettered in their primary economic function: to assist in the directing of the nation’s scarce savings to fund our most potentially productive investments. Funding cutting-edge capital investments will engender growth in national productivity and standards of living."
"An important collateral pay-off for higher equity in the years ahead could be a significant reduction in bank supervision and regulation.
Lawmakers and regulators, given elevated capital buffers, need to be far less concerned about the quality of the banks’ loan and securities portfolios since any losses would be absorbed by shareholders, not taxpayers. This would enable the Dodd-Frank Act on financial regulation of 2010 to be shelved, ending its potential to distort the markets — a potential seen in the recent decline in market liquidity and flexibility.
Well-capitalised banks need to be less fettered in their primary economic function: to assist in the directing of the nation’s scarce savings to fund our most potentially productive investments. Funding cutting-edge capital investments will engender growth in national productivity and standards of living."
A fag who pimped out of his house is who I want writing laws
DugtheDoog
New Fish
How about start by re-instating Glass-Stiegel. Shit never would have happened in the first place.
who knew that forcing banks to issue mortgages to people who didn't qualify would be a problem? the relaxed standards were also used by investors to over extend
PurpleJ
New Fish
It made for great campaign rhetoric. Kind of like the idea of "free" healthcare. Now all the fucktards in my generation are jumping on the Bernie train for "free" college education. Never mind the fact that they already went deep into debt for their degrees in Barista Studies. They should really start teaching basic econ in high schools again.
AZDuck
New Fish
Greenspan is a dumbass and should not be listened to on any topic of importance. That's how wrong and dumb he was about the 2008 financial crash.
OP is akin to listening to Dick Cheney and Paul Wolfowitz on Middle East policy. Their failures should discredit them.
http://www.washingtonpost.com/wp-dyn/content/article/2008/10/23/AR2008102300193.html
OP is akin to listening to Dick Cheney and Paul Wolfowitz on Middle East policy. Their failures should discredit them.
The cause of the Great Recession and what happened in the fall of 2008 is the same thing:
Lax credit standards.
Check the facts. Case Closed. End of discussion.
Lax credit standards.
Check the facts. Case Closed. End of discussion.
We should elect Hillary based on her Middle East success.
Huh?
Huh?
She's going to play the "I was just doing my job/ what Obama told me to do" card.
HFNY
Well-known poster
Sure Greenspan left rates too low for too long but how does that invalidate his sensible opinion piece on Dodd-Frank?
And the SEC should be responsible for regulating CDS, not the Fed.
Lastly Carter started the process of misallocating capital to the residential housing sector, Clinton foolishly put it on steroids, and W. Bush screwed up by continuing it ("ownership society") before trying to reverse course but it was largely too late.
The home mortgage interest deduction and all of the various Federal Agencies that exist to offer credit are the bigger distortions / misallocation of capital around.
And the SEC should be responsible for regulating CDS, not the Fed.
Lastly Carter started the process of misallocating capital to the residential housing sector, Clinton foolishly put it on steroids, and W. Bush screwed up by continuing it ("ownership society") before trying to reverse course but it was largely too late.
The home mortgage interest deduction and all of the various Federal Agencies that exist to offer credit are the bigger distortions / misallocation of capital around.
