Consider what’s not in the bill. Earlier this year, President Obama came out in favor of the Volcker rule, which would have prohibited regulated banks from engaging in the enormously profitable (but risky) business of proprietary trading. That would have punished the large investment banks. It is not part of this legislation. There’s been some discussion of a Tobin Tax, the idea of levying a tax on financial transactions such as currency, stock and derivative trades. That would raise revenue and provide disincentives for the socially useless algorithmic trading that creates risk for all investors. That would have punished many financial institutions. It is not part of the legislation. The House version of financial reform called for a $150 billion fund to be raised, largely by taxing big financial institutions, t at would help wind down failed institutions. That would have exacted a significant (and, to my mind, justified) cost on big investment banks. It is not part of the Senate legislation. If health care reform is any guide, the dynamics of Capitol Hill suggest that most House-Senate disputes are likely to be resolved in favor of the Senate.
I try to think positive, but then I read stuff like this!
Our leaders are a big fat joooooooke!
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