Talks are currently occurring in congress about whether or not to create a single bipartisan panel that would focus on changing the current financial service regulations. This panel, which would be similar to the panel created after 9/11, would have specific jurisdiction over financial regulations, taking away from the power of the 10 or so other committees that currently have some power regarding financial regulations. Personally I do not think that this idea would have the positive effects on the economy that the current smaller committees could have if each challenged to come up with regulations for their specific sectors. Though a task force might pass legislation more quickly, a diverse group of legislators from different sectors in different groups might create more effective legislation.
In related news in the financial sector today Chrysler and GM are seeking financial aid from the government and leaning towards a merger as it has become apparent that among slowing sales and high costs the companies are set to run out of cash within the next 12 months. The bankruptcy filings of one of the big three American auto companies would have rolling effects through out the auto part industry and also causing layoffs that would leave many jobless. As with most everything else the presidential candidates have very different views on this issue. Though the government is currently promising 25 billion dollars in loans to automakers in the U.S., Barrack Obama has suggested that that amount be doubled while John McCain is standing strong on the position that automakers should be given the first 25 billion before any more is loaned.
Tuesday Late Night Open Thread
1 hour ago
3 comments:
This is not exactly what you are saying, but I still thought it ws interesting and rather true.
http://money.cnn.com/2008/10/28/news/economy/consumer_confidence/?postversion=2008102813
I understand the reason for giving the auto companies money, to keep them from going bankrupt which would cause major layoffs, but it seems just so much like they are being rewarded for crewing up. it seems like if the government gives them money there should also be some punishment to the company... are they going to have to pay the money? how does that work
i agree that there should be some strings attached to receiving any type of financial aid because not doing so will provide for even more of a precedent of basically "free" money for these companies just because we are afraid of what will happen if these companies do go bankrupt lots of jobs are then lost. we need to make sure that these companies know that when you get big enough, that there might not necessarily be help, as in the case with lehman brothers.
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