We Need To Get Rid Of Dodd-Frank

On Friday, Investor’s Business Daily posted an editorial about the sixth birthday of the Dodd-Frank Law. I should probably mention that Dodd-Frank was passed not to solve a problem, but to give the government more power to pick winners and losers. It also served as a distraction from the actual cause of the 2008 financial crisis.

I have periodically posted the video below. It explains the roots and causes of the financial collapse of 2008. The video can be found on YouTube:


The editorial at Investor’s Business Daily reminds us:

Americans‘ eyes glaze over when Dodd-Frank, which just passed its sixth birthday on July 21, is mentioned. After all, it’s pages and pages and pages of mind-numbing rules. A recent poll found that 63% of Americans didn’t even know what Dodd-Frank was.

A new study suggests Americans would be wise to pay more attention. Research by the American Action Forum (AAF) says that, during its brief six years of existence, the Dodd-Frank law has cost the U.S. more than $36 billion and imposed 73 million paperwork hours on American financial businesses.

In its report last year, the totals were $24 billion and 61 million paperwork hours in just one year.

Put on a more personal basis, the costs are equal to roughly $112 per person, or $310 per household. In short, it’s a tax that you’re paying, whether you realize it or not.

…One of the promises made back when Dodd-Frank was being discussed was that it would end “too big to fail” for the big banks. Not only did it not end that pernicious practice, it has exacerbated it. The top 5 banks have expanded their share of banking assets since Dodd-Frank. They not only didn’t kill “too big to fail,” they super-sized it.

As we pass Dodd-Frank’s sixth birthday, let us all firmly resolve that it not see its seventh.

Repealing Dodd-Frank would be a good first step in restoring America’s economy. The other thing that would be nice would be to put all the people who profited from the sub-prime mortgage market and then went on to high-paying government jobs behind bars where they belong (along with the politicians that passed laws and ignored problems that made the 2008 financial collapse possible). Watch the video to see who they are.

Those Who Cannot Remember The Past Are Doomed To Repeat It…

I have posted the YouTube video below before. It is a quick summation of the causes of the collapse of the housing bubble.

I am posting the video now because it relates to an article posted at Investors.com yesterday detailing the effect of actions of the Obama Administration on wealth in the African-American community.

The article at Investors.com points out:

Before the crisis, Obama pushed thousands of credit-poor blacks into homes they couldn’t afford. As a civil-rights attorney, he sued banks to rubberstamp mortgages for urban residents.

Many are now in foreclosure. In fact, the lead client in one of his class-action suits has since lost her home and filed bankruptcy.

I understand the desire of community activists to encourage the dream of home ownership in their communities, but that dream has to be balanced with some degree of reality. Unfortunately, we still have not learned that lesson.

The article concludes:

Obama hasn’t learned from his mistakes.

Far from it, IBD has learned the mammoth credit watchdog agency he created (with input from NPA radicals) will dust off Clinton’s 1994 minority lending guidelines to crack down on stingy lenders. And he’s ordered Holder, now acting as his attorney general, to prosecute banks that don’t open branches in blighted urban areas.

Not only has Obama scapegoated banks for the crisis he helped cause, he’s exploited minority suffering to continue reckless policies that hurt those he claims to champion.

Until Americans begin to look at the entire situation–including the impact of forcing banks to grant loans to those who cannot pay they back, the American economy will not recover. Forcing banks to make sub-prime loans sets up a loss for the bank and interferes in the free market. We cannot continue to ignore market forces and expect our economy to recover.

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