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Politics : GOPwinger Lies/Distortions/Omissions/Perversions of Truth -- Ignore unavailable to you. Want to Upgrade?

To: JBTFD who wrote (147308)	11/15/2008 2:33:19 PM
From: Lizzie Tudor	Read Replies (1) \| Respond to of 173976

there isn't any argument there but that involves passing another banking reform bill. That will happen in the spring. At this moment banks are not taking on more leverage, they are NOT lending, so right now we are paying for the leverage of the 04-05 period. Congress could pass a banking reform bill tomorrow disallowing 40:1 leverage, or they could pass it in march and the result on -today's economy- would be the same- no effect. A banking reform bill helps to protect against the NEXT failure. So what do we do right now? I think its obvious that if you take a 40:1 leverage position and all of the sudden you say full stop we are going down to 20:1 in a 6 mos period all hell will break loose.