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Dodd-Frank

 
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PostPosted: Sat Jan 16, 2016 9:06 am    Post subject: Dodd-Frank Reply with quote

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Dodd & Frank created a financial boom that lead to a severe recession. Then, they created a financial bust in a recession that lead to a deep depression.

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Dodd-Frank contributed to the deep depression. Other regulations on health care, energy, transportation, housing, education, etc., and on businesses in general, added to the depression. After Dodd and Frank helped facilitate a financing boom, they put their boots on the neck of the financial sector:

Too Big Not To Fail
The Economist
Feb 18th 2012

“…demands for fees and paperwork with which Dodd-Frank will blanket a vast segment of America’s economy…the massive cost and complexity of its regulations…The law that set up America’s banking system in 1864 ran to 29 pages; the Federal Reserve Act of 1913 went to 32 pages; the Banking Act that transformed American finance after the Wall Street Crash, commonly known as the Glass-Steagall act, spread out to 37 pages. Dodd-Frank is 848 pages long…Like the Hydra of Greek myth, Dodd-Frank can grow new heads as needed…For the same reasons that bankers are worried, lawyers are rubbing their hands… litigation is just beginning…Another product of Dodd-Frank is a plethora of new government powers and agencies (see chart 2) with authority over areas of the American financial system and economy…power to regulate more intrusively and to make arbitrary or capricious rulings,,The lack of clarity which follows from the sheer complexity of the scheme will sometimes, perhaps often, provide cover for such capriciousness… the unnecessarily harsh impact of current regulations…And Dodd-Frank has hardly touched Fannie Mae and Freddie Mac.

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Dodd & Frank were working together before the financial crisis:

Bush Administration Tried to Reform Freddie and Fannie Five Years Ago
February 19, 2009

“Fannie Mae and Freddie Mac “accelerated their imprudent behavior after we attempted to regulate them. They bought almost as much mortgage debt from 2005 through 2008 as they bought in their first 30 years of their existence.

In 2003, when we sent our first members of the Cabinet up to talk about this on Capitol Hill, Barney Frank had a hearing in which they basically beat up everybody we sent up there in pretty vociferous language.

In fact, we moved aggressively in 2004 to regulate Fannie and Freddie, actually got a bill through the Senate Banking and Finance Committee only to have it filibustered by [Sen.] Chris Dodd.”

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