The New Financial Reform of 2010 - Real Estate and Technology News for Agents, Broker

The New Financial Reform of 2010

The financial reform is here! The financial reform is here! The big news of the year is the financial reform we have all been waiting for is now making its way through Congress. Too many people were bothered that our tax dollars went to bailout companies that already got the lions share of our hard earned money. Companies that seem to control housing prices and the stock market itself actually want the American people to bail them out when they mismanage their, and indeed the rest of our funds, will now lose their chance to get bailed out again. Hopefully they fixed their problems, because there will be no more bailouts for them, thank the maker!

The regulation bill is currently moving through the House and Senate for approval, and will now move to a conference committee to merge with the bill already passed by the House. There are several things this bill will do for the American economy, among them, stop the bailouts of large companies. It will also regulate and give oversight to unregulated firms and advisers to hedge funds, requiring them to register with the SEC, which is unprecedented.

As with most things in life, there are two sides to every coin. The bill is designed to prevent the failure of large companies from harming the American economy, as it should. But it also looks as though it bent to screams of a panic-stricken crowd. The idea behind America and a free economy is less government control and more opportunity for people. The new bill seems to restrict that a bit. There is now a reform on executive pay by the government. Also unprecedented is government control of the privet sector and privet sector salaries.

Of course there are items in the bill that will hopefully prevent, or at the very least, cut down the abuse of our financial system by large firms, but we should be careful of how we impose restrictions on the American economy and free trade. For example, there is now only one consumer protection agency as opposed to the seven currently in place. The point of having seven agencies is the same as our three branches of government, to prevent corruption and keep a balance of power, never allowing total power to reside in one house.

There are several things to know about the new financial reform. Read carefully through the high points and consider all sides of the issues. Get involved and write or contact your Senators to offer your opinion.

Posted on June 23, 2010 14:36:07 by Blog Author