Pay attention!! Big changes are going to be proposed tomorrow in Washington DC that deal with the financial well being of the nation. Already the plan has opened a very sharp debate an no one is talking but my fear is that it may send out the wrong message that things are so bad they cannot be fixed!
The plan was announced late Friday night to insiders, and will be officially released Monday morning. There are going to be the biggest proposals of change since the Great Depression. The plan focuses on a broader role for the Federal Reserve consolidating powers by eliminating overlapping areas of state and Federal regulators to gain oversight into investment banks and brokerages. The plan also calls for Office of the Comptroller and the Office of Thrift Supervision to come under tighter Federal or centralized control to keep the credit crisis problems from getting worse. It will create a "Super watchdog agency! Other streamlining proposes the Securities and Exchange Commission to merge with the Commodities Futures Trading Commission!
Under the 200 page plan which will be released Monday morning is an effort to regain confidence in our economy. Paulson (Former chairman of Goldman Sachs) want the Federal Reserve to become the center of oversight to control market stability.
I am a firm believer that less government is better government, and that this announcement may send shock-waves throughout the economy. It is sort of like the situation we have on the boarder - we have all the rules, laws in place no one wants to be man enough to enforce them. It is alos like the wolves gaurding the sheep! Some of the institutions that they want to change have been in place since the Civil War. It may concentrate too much power to too few!
- "Paulson To Propose Broad Overhaul Of US Financial Regulation" Forbes
- "Read the proposal" CNN Money
- "US plans biggest shakeup of Wall Street watchdogs in 80 years" Guardian
- "White House to Seek New Fed Power to Keep Markets Stable" New York Times
- "Wall Street Awaits Government Plan" BusinessWeek
- "Battle lines form around Paulson's reforms" MarketWatch
- "Long Fight Ahead for Treasury Blueprint" Washington Post
- "Sweeping Changes in Paulson Plan" Wall Street Journal
- "Why the Paulson Plan is DOA" BusinessWeek
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Bill Kennedy This story was very hidden. It posted near 11 PM Friday night on a weekend to pre-announce a Monday Release. It will be interesting how the foreign market perceive this! The best overage of the story seems to have come from overseas:
"US plans biggest shakeup of Wall Street watchdogs in 80 years" Guardian
P. Timothy McDonald The sad this was last week they bailed out an investment bank in which they have no jurisdiction. No one questioned the authority, and I know there was no full disclosure. We will never know all the reasons for their actions, but the new authority is being treated with skepticism!
I read that Eliot Spitzer was set up following his article in the Washington Post on 14th February - or is that just another conspiracy theory?
http://www.washingtonpost.com/wp-dyn/content/article/2008/02/13/AR2008021302783.html
Roger Hollingsworth - I read that and I saw a video supporting that. Too bad they did not run it before he had to resign. It would have had credibility then. Sort of like these folds that like to talk about Nostradamus! Things all of a sudden become clear in the rear view mirror, but the reality is this is a PR ploy after the train has wrecked. Andrew Cuomo however earlier that week came to an agreement with Fannie Mae and Freddie Mac after he prosecuted them Spitzer was too pre-occupied with other things.
Rich Sweum I agree! What most folks don't under stand is that the Federal Government is the largest employer in the USA! No one comes close! They are broken! No one does their job, everyone is too afraid to do so, everything has to be politically correct everything is subjective as opposed to being objective and accountable for their actions!
It would be a great plan if the government let the FED do its job.