02-12-2017, 08:21 PM
Belsnickel,
Trump's directive is ambiguous. It only says parts of Dodd-Frank will be rolled back. Your doom and gloom is premature unless you think the law in its entirety prevents another crisis.
2. We may be headed for another crisis regardless of what happens with Dodd-Frank.
The reality of our financial markets is that they're controlled mostly by a small number of firms. Said firms' behavior is what contributed to the financial crisis, yes. But the fact that they had so much market power to begin with never registers with people. Dodd-Frank made the situation worse by making it harder for small banks to compete.
http://www.syracuse.com/news/index.ssf/2010/10/say_goodbye_to_traditional_fre.html
https://www.washingtonpost.com/business/capitalbusiness/four-years-into-dodd-frank-local-banks-say-this-is-the-year-theyll-feel-the-most-impact/2014/02/07/12c7ca48-877e-11e3-a5bd-844629433ba3_story.html?utm_term=.c5c6c8e09728
http://www.forbes.com/forbes/welcome/?toURL=http://www.forbes.com/sites/carriesheffield/2015/02/09/dodd-frank-is-killing-community-banks/&refURL=https://www.google.com/&referrer=https://www.google.com/
Economies change all the time. If you think the government can adapt to said changes, you're ignoring how flabbergasted they were in 2008.
A better solution might be to reduce the size, complexity, and market power the biggest players have. Better than giving the tops dogs more market power than they had before the crisis.
Trump's directive is ambiguous. It only says parts of Dodd-Frank will be rolled back. Your doom and gloom is premature unless you think the law in its entirety prevents another crisis.
2. We may be headed for another crisis regardless of what happens with Dodd-Frank.
The reality of our financial markets is that they're controlled mostly by a small number of firms. Said firms' behavior is what contributed to the financial crisis, yes. But the fact that they had so much market power to begin with never registers with people. Dodd-Frank made the situation worse by making it harder for small banks to compete.
http://www.syracuse.com/news/index.ssf/2010/10/say_goodbye_to_traditional_fre.html
https://www.washingtonpost.com/business/capitalbusiness/four-years-into-dodd-frank-local-banks-say-this-is-the-year-theyll-feel-the-most-impact/2014/02/07/12c7ca48-877e-11e3-a5bd-844629433ba3_story.html?utm_term=.c5c6c8e09728
http://www.forbes.com/forbes/welcome/?toURL=http://www.forbes.com/sites/carriesheffield/2015/02/09/dodd-frank-is-killing-community-banks/&refURL=https://www.google.com/&referrer=https://www.google.com/
Economies change all the time. If you think the government can adapt to said changes, you're ignoring how flabbergasted they were in 2008.
A better solution might be to reduce the size, complexity, and market power the biggest players have. Better than giving the tops dogs more market power than they had before the crisis.
