Coffee Party News
731.5K views | +0 today
Follow
Fact-based, solutions-oriented, people-powered news for the 99%
Your new post is loading...
Your new post is loading...
Scooped by Coffee Party USA
Scoop.it!

Don't Get Fooled Again

Don't Get Fooled Again | Coffee Party News | Scoop.it

TAYLOR LINCOLN, Huffington Post

Revisiting the lessons from deregulating derivatives is particularly important right now because Congress seems to have forgotten them. A report we just issued provides a road map of how derivatives wrecked the economy in 2008 and could do so again if Wall Street gets its way.


Nine bills that would roll back the derivatives reforms created in the wake of the financial crisis are moving in Congress. These proposals, most of which have already passed in committee, have been put forth in the name of furthering the competitiveness of U.S. companies and creating jobs for Main Street. These are quite brazen claims, since deregulating derivatives arguably did more to harm economic competitiveness and job creation than anything Congress has done for a very long time.


Here is the history, in brief: At the end of the Clinton administration, financial derivatives were relatively new and sat in a regulatory netherworld. In practice, they were not regulated. But they bore all the hallmarks of traditional futures, which by law must be traded on regulated exchanges. [MORE]

more...
No comment yet.
Scooped by Coffee Party USA
Scoop.it!

How Wall Street Killed Financial Reform

How Wall Street Killed Financial Reform | Coffee Party News | Scoop.it

by MATT TAIBBI, Rolling Stone

Two years ago, when he signed the Dodd-Frank Wall Street Reform and Consumer Protection Act, President Barack Obama bragged that he'd dealt a crushing blow to the extravagant financial corruption that had caused the global economic crash in 2008. "These reforms represent the strongest consumer financial protections in history," the president told an adoring crowd in downtown D.C. on July 21st, 2010. "In history."

 

This was supposed to be the big one. At 2,300 pages, the new law ostensibly rewrote the rules for Wall Street. It was going to put an end to predatory lending in the mortgage markets, crack down on hidden fees and penalties in credit contracts, and create a powerful new Consumer Financial Protection Bureau to safeguard ordinary consumers. Big banks would be banned from gambling with taxpayer money, and a new set of rules would limit speculators from making the kind of crazy-ass bets that cause wild spikes in the price of food and energy. There would be no more AIGs, and the world would never again face a financial apocalypse when a bank like Lehman Brothers went bankrupt.

 

Most importantly, even if any of that fiendish crap ever did happen again, Dodd-Frank guaranteed we wouldn't be expected to pay for it. "The American people will never again be asked to foot the bill for Wall Street's mistakes," Obama promised. "There will be no more taxpayer-funded bailouts. Period."


Two years later, Dodd-Frank is groaning on its deathbed. The giant reform bill turned out to be like the fish reeled in by Hemingway's Old Man – no sooner caught than set upon by sharks that strip it to nothing long before it ever reaches the shore. In a furious below-the-radar effort at gutting the law – roundly despised by Washington's Wall Street paymasters – a troop of water-carrying Eric Cantor Republicans are speeding nine separate bills through the House, all designed to roll back the few genuinely toothy portions left in Dodd-Frank. With the Quislingian covert assistance of Democrats, both in Congress and in the White House, those bills could pass through the House and the Senate with little or no debate, with simple floor votes – by a process usually reserved for things like the renaming of post offices or a nonbinding resolution celebrating Amelia Earhart's birthday.
Read more:  [MORE]

more...
No comment yet.
Scooped by Coffee Party USA
Scoop.it!

Jefferson’s lifelong dream

Jefferson’s lifelong dream | Coffee Party News | Scoop.it

ANDREW BURSTEIN AND NANCY ISENBERG, Salon

"The only security of all is in a free press.” Thomas Jefferson wrote these words to the Marquis de Lafayette at the age of 80. The reason Jefferson lauded a free press was that he wished, in tense political times, for the U.S. to function as a deliberative democracy, in which an increasingly better-educated citizenry monitored the policy decisions of its elected representatives and judged whether or not they deserved to remain in office.

A better-educated citizenry. That was Jefferson’s mantra, and it should be ours, too. Republicans in Congress have claimed Jefferson as their man, time and again quoting him as a champion of small government. One of their favorites lines is, “If it were possible to obtain a single amendment to our Constitution,” it would be “taking from the Federal Government the power of borrowing.” The Jefferson they do not pay attention to is the one whose lifelong dream was a well-funded public education system — the Jefferson who spent his post-presidential retirement years creating a beautiful public university in Charlottesville, Virginia. Jefferson asked no less a figure than U.S. Attorney General William Wirt, notably the son of a Maryland tavern-keeper, to be its president. He understand that personal growth and national strength were best served by lifting up ordinary folks.

This week, the Senate debated student loan rates, which are now at a comfortable 3.4 percent and are set to double on July 1, if nothing is done. In his most recent college tour, President Obama focused on the endangered interest rate, fully aware that Republicans would have to support the Democratic initiative, if only to avoid embarrassment. Their sleight of hand was in proposing to come up with the $6 billion by removing money from preventive healthcare programs. That, then, is how the House Republican majority voted a week earlier to pass a one-year extension of the 3.4 percent rate. Democrats had urged cutting subsidies to oil and gas companies instead of raiding health care funds. When that wouldn’t fly, the alternative became an increase in the Social Security payroll taxes of the already wealthy. The White House vowed a veto after the House measure passed. It’s now the Senate’s turn. Congress will have to reach some sort of compromise, because neither party wishes to be seen as anti-student in an election year. [MORE]

more...
No comment yet.