Could Dodd-Frank be repelled soon?
Former Federal Reserve Chairman Alan Greenspan said sweeping post-crisis reforms of the U.S. financial system haven’t fixed the problem they were designed to tackle and should be scrapped, escalating his long-standing criticism of the 2010 Dodd-Frank Act. “I don’t think this bill is working at all and I would like to see it repealed,” he told Bloomberg Television’s David Westin in an interview Thursday from Washington. “But I must admit that the politics are such that that is called wishful thinking.”
U.S. Treasury Secretary Jacob J. Lew, in separate remarks on Thursday, said Dodd-Frank had made the financial industry safer. “It would be a mistake to roll back the clock on these protections,” he said in testimony to Congress.Greenspan’s hands-off approach while he helmed the U.S. central bank was blamed by many critics for fostering conditions that incubated the global financial crisis. While Greenspan said in 2008 that his free-market ideology shunning regulation was flawed, he has for years been skeptical of Dodd-Frank, enacted after the turmoil to make banks stronger and subject to better oversight. Full Story
We briefly covered this story in the interim market update; the goal is to slowly prep the masses for some change in lending standards by repelling key elements of Dodd-Frank; banks might provide large personal loans or go back to issuing liar loans. Whatever, they come up with the idea is to get hot money into the hands of the masses so that they can fuel the last stage of this bubble. Don’t fall for the garbage the naysayers are busy selling regarding the Fed being scared and blah blah. Who do you think will be left with the bill? The average Joe who just happens to pay more in taxes than most of the corporations/wealthy individuals do, based on a percentage basis (percentage of taxes paid on income earned) The big players never lose; that concept that they suffer losses is just a beautiful myth created by delusional beings. It is the law of the jungle, and the masses are nothing but sardines; a sardine can never take on a shark no matter how hard it tries. Those who follow the mass mindset are akin to sardines. To become something stronger, you need to change the way you think.