Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?

To: Dale Baker who wrote (148248)	10/27/2010 2:23:09 PM
From: Katelew	Read Replies (2) \| Respond to of 542229

I had a long timeline in my head when I made that comment. Wall St. has always been able to either outright roll Congress or at least stay one step ahead of Congress. Wall St. excels at landing on its feet and exploiting every twist and turn in any piece of legislation. These guys cannot be pinned down and have an endless capacity to outfox the regulators. It's just the way it is. The main problem is that these guys never blow themselves up exactly the same way twice. Congress is always trying to plug the holes in the last dike, and never looking ahead to see what Wall St. is up to now. The odds of Wall St. leveling itself again with derivatives based on sub-prime mortgages is probably nil. But this is where Congress is focused. The best thing to be done was simply pass iron clad increased reserve requirements and then let Wall St. play with any kind of derivative scheme it chooses. The Obama administration could have passed a simple piece of targeted legislation doing just that. Instead we got Fin Reg which punts everything down the road to a time when the public will have dim memories and the lobbyists will have had years to muddy the water. Now we'll get to see what, if anything, a Rep house comes up with re FinReg.