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Greenspan says dump Dodd-Frank

HFNY
HFNY Member Posts: 5,381
in Tug Tavern
And increase capital requirements. I agree:

ft.com/cms/s/0/4d55622a-44c8-11e5-af2f-4d6e0e5eda22.html#axzz3jCqRUKBI
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Comments

  • HFNY
    HFNY Member Posts: 5,381
    Note it may require answering two survey questions to read the full article but giving you basement dwellers full disclosure so you don't complain (or can't complain much since I know you will anway....water is wet).
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  • HFNY
    HFNY Member Posts: 5,381
    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."
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  • DugtheDoog
    DugtheDoog Member Posts: 3,180
    How about start by re-instating Glass-Stiegel. Shit never would have happened in the first place.
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  • HFNY
    HFNY Member Posts: 5,381
    You may not remember but Clinton was the President when Glass Stegall was repealed:

    image
    2001400ex said:

    A banking guy that oversaw a period of deregulation that preceded a financial collapse wants less regulation. Shocking.

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  • PurpleJ
    PurpleJ Member Posts: 37,643 Founders Club
    People also forget that the Clinton administration oversaw the destruction of home lending standards that planted the seed for the subprime crisis.
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  • PurpleJ
    PurpleJ Member Posts: 37,643 Founders Club
    RaceBannon said:

    PurpleJ said:

    People also forget that the Clinton administration oversaw the destruction of home lending standards that planted the seed for the subprime crisis.

    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
    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.
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  • AZDuck
    AZDuck Member Posts: 15,381
    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.
    Alan Greenspan, once viewed as the infallible architect of U.S. prosperity, was called on the carpet yesterday, pilloried by a congressional committee for decisions that contributed to the financial crisis devastating world markets.

    The former chairman of the Federal Reserve said the crisis had shaken his very understanding of how markets work, and agreed that certain financial derivatives should be regulated -- an idea he had long resisted.
    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.
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  • RaceBannon
    RaceBannon Member, Moderator, Swaye's Wigwam Posts: 113,715 Founders Club
    We should elect Hillary based on her Middle East success.

    Huh?
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  • AZDuck
    AZDuck Member Posts: 15,381
    RaceBannon said:

    We should elect Hillary based on her Middle East success.

    Huh?

    I think Hillary's record as SoS is absolutely fodder for her candidacy.
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  • PurpleThrobber
    PurpleThrobber Member Posts: 48,015
    AZDuck said:

    RaceBannon said:

    We should elect Hillary based on her Middle East success.

    Huh?

    I think Hillary's record as SoS is absolutely fodder for her candidacy.
    She's going to play the "I was just doing my job/ what Obama told me to do" card.

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  • AZDuck
    AZDuck Member Posts: 15,381
    PurpleThrobber said:

    AZDuck said:

    RaceBannon said:

    We should elect Hillary based on her Middle East success.

    Huh?

    I think Hillary's record as SoS is absolutely fodder for her candidacy.
    She's going to play the "I was just doing my job/ what Obama told me to do" card.

    That's fine. And people can judge her leadership based upon that if she does.
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  • HFNY
    HFNY Member Posts: 5,381
    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.
    AZDuck said:

    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.

    Alan Greenspan, once viewed as the infallible architect of U.S. prosperity, was called on the carpet yesterday, pilloried by a congressional committee for decisions that contributed to the financial crisis devastating world markets.

    The former chairman of the Federal Reserve said the crisis had shaken his very understanding of how markets work, and agreed that certain financial derivatives should be regulated -- an idea he had long resisted.
    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.

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  • priapism
    priapism Member Posts: 2,295
    Good news - the U.S. will never default:

    https://www.youtube.com/watch?v=-_N0Cwg5iN4
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