A regulated economy may not perform at peak performance, but rather to its credit has built in stability and resilience in order to mute and calm the wider variances of the business cycle. The rules and regulations that govern Banking and Finance are there for a reason – to protect American citizens from the predatory nature of untrammelled capitalism. It comes as no surprise that the current Republican Administration is doing its best to eliminate the checks and balances currently in place and promote winner take all (at the cost of society) capitalism. Nomi Prins describes the regulation situation in the US:
“The Emperor Has No Rules
Nearly every regulatory institution in Trumpville tasked with monitoring the financial system is now run by someone who once profited from bending or breaking its rules. Historically, severe financial crises tend to erupt after periods of lax oversight and loose banking regulations. By filling America’s key institutions with representatives of just such negligence, Trump has effectively hired a team of financial arsonists.
Naturally, Wall Street views Trump’s chosen ones with glee. Amid the present financial euphoria of the stock market, big bank stock prices have soared. But one thing is certain: when the next crisis comes, it will leave the last meltdown in the shade because our financial system is, at its core, unreformed and without adult supervision. Banks not only remain too big to fail but are still growing, while this government pushes policies guaranteed to put us all at risk again.
There’s a pattern to this: first, there’s a crash; then comes a period of remorse and talk of reform; and eventually comes the great forgetting. As time passes, markets rise, greed becomes good, and Wall Street begins to champion more deregulation. The government attracts deregulatory enthusiasts and then, of course, there’s another crash, millions suffer, and remorse returns.
Ominously, we’re now in the deregulation stage following the bull run. We know what comes next, just not when. Count on one thing: it won’t be pretty.”




5 comments
February 6, 2018 at 4:54 pm
bleatmop
Particularly apt post with the current stock market crash that is happening.
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February 6, 2018 at 10:19 pm
lovetruthcourage
Americans need Dodd-Frankl
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February 6, 2018 at 10:19 pm
lovetruthcourage
Americans need Dodd Frank
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February 7, 2018 at 3:08 am
Meg
There is another pattern to be seen, the one where Republicans take the economic growth that Democrats create to wage illegal wars and give tax breaks to the wealthy.
https://www.cnbc.com/2016/11/30/obamas-biggest-parting-gift-to-trump-may-be-the-economy.html
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February 7, 2018 at 9:38 am
lovetruthcourage
I am glad Bin Laden was delivered to justice, but I do agree that Republicans have a habit of redistributing money from Democratic boom years to folks who are already rich.
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