Boom or Bust?

Obama is claiming victory on the financial reform package put together by the House Financial Services Committee and the Senate Banking Committee, before he hopped on Air Force One to Canada for a pricey G8 conference.

Is it really addressing the issues that led to the 2008 financial bust? Whatever happened to the Sarbanes-Oxley Act of 2002, which was supposed to fix all these kinds of problems?  Is giving more government control over American companies suppose to help the economy recover?

This will be a bust if it is passed in the Senate because it does not address the biggest issue: Fannie Mae and Freddie Mac.  Gee I cannot imagine why this is…oh I know why, Chris Dodd and Barney Frank are bed  buddies with both of these organizations and they both happen to be on the House/Senate Banking Committees.  A little convenient don’t ya think?

That is not including the fact that both of these Senators were present when the House and Senate passed the Sarbanes-Oxley Act of 2002 to “oversee the auditors of public companies in order to protect investors and the public interest by promoting informative, fair, and independent audit reports.” (http://pcaobus.org/About/Pages/default.aspx). Plus, for the first time in U.S. history, U.S. public companies were subject to external and independent oversight.  This Act created the Public Company Accounting Oversight Board (P.C.A.O.B) that is a nonprofit corporation that are made up of five board members, including the Chairman; whom are appointed to staggered five-year terms by the Securities and Exchange Commission, after consultation with the Chairman of the Board of Governors of the Federal Reserve System and the Secretary of the Treasury. Cannot forget, the Security Exchange Commission has oversight authority of the P.C.A.O.B.  Why has there not been an investigation of the SEC, Federal Reserve System and the Secretary of Treasury?

hy hasn’t Congress repealed the 1992 Federal Housing Enterprises Financial Safety Soundness Act, which “encouraged” requiring government sponsored credit agencies (Fannie Mae & Freddie Mac) to purchase more mortgages that banks issue to minority neighborhoods?  If that would be repealed or amended, it would help solve the problems that led up to the financial bust starting in 2008.

This is another power grab by the White House and Congress with this financial reform going to vote, it is giving the federal government the “opportunity” to liquidate companies that are “failing”.  Not including the fact it creates another federal government agency-what the heck?  Oh yes, your taxpayer money will now pay even more idiots to shuffle papers, watch porn,  and play golf at the Consumer Finance Protection Bureau!  You are not just paying for a new agency but you will continue to pay Fannie Mae and Freddie Mac for the losses they sustain until at least 2012, which lifted a cap that was set at $400B.  Already, you the taxpayer have given Fannie Mae and Freddie Mac $145B!!

There cannot be any Boom!  to this financial reform, when you the taxpayer are going to be shelling out more money for fees for loans, checks, and anything else the banks can think of to offset the fee assessed by the federal government for the $19B (over 10 years) it will cost to put this bill in place (on banks with $50B in assets and hedge funds more than $10B). (http://www.newsmax.com/Headlines/US-Financial-Overhaul/2010/06/25/id/363095).

This legislation will only hurt the middle class Americans who are already hurting from unemployment, with no relief in sight.  On top of this, banks are audited quite regularly, why didn’t the auditors start raising questions?

I smell a rat in this whole mix and it is the SEC, the Federal Reserve, Secretary of Treasury, bank auditors and of course the Obama  administration. There needs to be an enforcement of the rules and regulations that are already been passed and approved; why hasn’t anybody suggested that?

Your answer:  This is a way for the federal government to get their hands on even more American businesses and run them for their benefit only or should I say for George Soros’s benefit.  Welcome Comrades’ to the Republic of the United States!

About the author

Becki Haight wrote 35 articles on this blog.

Educational background in business and management. Conservative, who believes the U.S. Constitution is not a “living document”, but firm in its resolve.Born into a middle class family and raised to believe in God, defending your country, helping your neighbor, working hard, and nobody owes you anything. Diagnosed with systemic scleroderma in 2008 and has proceeded to live and continually fight back! Loves to write about America and its great people.

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