Fierce Regulation Debate Expected

Source: Associated Press


"WASHINGTON (AP) -- In proposing the broadest overhaul of financial oversight since the Great Depression, the Bush administration has kicked off a fierce debate. It pits those eager to revamp an antiquated system against an industry opposed to excessive regulation."

What is the "fierce" debate expected? The answer is simple, no tax payer liability to be created. If the government has some funds lying somewhere that needs to be put to good use, I'm sure there are several initiatives that are going to fail such as social security and medicare. It makes absolutely no sense to bail out any of the wall street firms that decided to speculate in real-estate. Getting the people out of the debt burden should be the natural flow (the wall street firms can go and report to the investors where the money is gone and that they can come back when they some more money to invest).

It's now time for the financial companies to gulp the bitter medicine to account for the "lax lending". They made tons of money as commissions in putting those deals together and ignoring the risk to the investment and it's just time for them to go back to the investors and explain how and where all the money went. Regulation has to come in to protect the consumer and not wall-street (they'll have their money supply cut from investors).