Saturday, June 10, 2017

House Republicans Gut Financial Regulation Because What Could Go Wrong (*See Global Financial Crisis Of 2008)

On Thursday, while everybody and their uncle was watching former FBI director James Comey testify at the Senate Intelligence Committee, the House Republicans decided it would be a good time to gut the 2010 Dodd-Frank law.

For those that don't know the Dodd-Frank law was passed by President Barack Obama on July 21, 2010 making changes to the American financial regulatory environment to keep them from committing the same horrors that brought about the global financial crisis that almost doomed the country in 2007-2008.

In what they GOP is referring to as the "Financial Choice Act" they hope to...

subject new financial rules to cost-benefit analysis, boost penalties for financial wrongdoers and repeal the Volcker rule restricting banks from speculative trading.” 

This is just financial babble meaning they want to free banks from any oversight. This would be something you would do if the banks were were suffering, failing to make money, failing to attract deposits, failing in general... Which they aren't but hey, whatevs.

Under the new law many banks would be exempt from the federal stress tests, and the legislation would scale back the ability of the Consumer Financial Protection Bureau to ride herd on abusive bank practices.

After the Republicans got this irresponsible and unnecessary law passed through Congress the bank stocks shot up on Wall Street.

This will come as a great relief that the many Americans who voted for Donald Trump to bring jobs back to America. Though they still won't have any jobs at least their stock portfolios must be looking great right now!

With that in mind here's a pro tip from us here at The Godless Liberal.

You are going to want to sell some of the profits you have made thus far. I know, I know you'll be taking a big tax hit but but you are going to want to stay liquid for when the next global financial crisis hits America as a result of this law. Anywhere from on hundred thousand to a quarter million should do. It is with this money we suggest that you short any and all stocks in the Dow 100. That way when the market crashes you will be sitting pretty!

You're welcome.

No comments:

Post a Comment