Unfortunately, the financial bill (FINREG) has passed. Crafted by two of the top members of the architectural team of the housing crisis, Rep. Barney Frank (D;MA) and Sen. Chris Dodd (D:CT), this bill be deal a serious blow to the consumer. In addition, it will add further negative pressure on the housing market long term.
FOX Business takes up the potential effects in the following interview:
The new bill, over 2000 pages with many of the particulars of the legislation yet to be firmed up, will simply be devastating to small business and consumers. Governmental regulation increases costs which limit the choices of the consumer.
The banks will not be free to lend as they see fit, in their own communities taking into account current local market conditions, but will be governed under the new regulatory framework of this bill. It certainly will make effort to secure credit by the consumer more costly and much more difficult to obtain.
While we had to pass it find out what in it, there have been some real distressing items uncovered, from regulations on insurance to affirmative action hiring quotas for Wall Street.
Among the more puzzling items, the bill does absolutely nothing to rein in Fannie Mae and Freddie Mac, the government sponsored entities which contributed greatly to the housing crisis. Imagine that! CNBC has more:
The bill, signed in a ceremony at the Ronald Reagan Building, is insulting as it is in direct opposition to the principles and economic beliefs Reagan championed.
It would be great for Americans to let the following sink in: Free Market Capitalism is the best path to prosperity!
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