Tuesday, March 16, 2010

More Bureaucracy and More Studies

Come on. Did you really think that Wall Street firms were going to allow any legislation to be enacted that changed the game for them? Neither did I.

The Senate bill put forth by Senator Dodd is called the Restoring American Financial Stability Act of 2010. There is a whole lot more bureaucracy in it. Look at the new government entities that will be created if this passes.

Financial Stability Oversight Council
Office of Financial Research
Orderly Liquidation Authority Panel
Office of National Insurance
Investor Advisory Committee
Office of Investor Advocate
Bureau of Consumer Financial Protection
Consumer Advisory Board

Take a hard look at the above list and tell me who is in charge? Does the Investor Advisory Committee have more authority than the Bureau of Consumer Financial Protection? Or, does the Consumer Advisory Board have more authority than the Office of Investor Advocate. Or, does the Office of Investor Advocate have more authority than the Bureau of Consumer Financial Protection. Of course, it is easy to figure this out, isn't it?

Then, let us not forget the very effective use of tax dollars that call for a study to be done. (Yes, I am being facetious.)

GAO study and report on accredited investors
GAO study on self-regulatory organization for private funds
SEC Commission study and report on short selling
GAO study of non-admitted insurance market
Study on treatment of credit card banks, industrial loan companies, and certain other companies under the Bank Holding Company Act of 1956
Study and report on implementation related to Security-Based Swap Markets
Study and rulemaking regarding obligations of brokers, dealers, and investment advisers
Study regarding financial literacy among investors
Study regarding mutual fund advertising
GAO study and Federal agency review of required uses of nationally recognized statistical rating organization ratings.
SEC study on strengthening credit rating agency independence
GAO study on alternative business models
GAO study on the creation of an independent professional analyst organization
GAO study of increased disclosure of Municipal Securities to investors
GAO study on the Municipal Securities markets.
Study of funding for the Government Accounting Standards Board.
GAO study on proprietary trading
GAO study on the effectiveness and impact of various appraisal methods

The poor GAO. Those guys will be doing studies for years. Well, look at the bright side. They will have job security. Hey, wait just a minute. Is this giving job security to government workers, instead of the private sector? Unfortunately, it is true. No private sector study jobs will be created by this bill, I do not believe. It appears that it all will go to the government.

This paints a clear picture of why we should vote these people out of Congress, don't you agree? This type of bill is purely ridiculous. All it does is create more bureaucracy and cost the taxpayer yet more out of their pocket. We have not even seen the Health Care bill yet. I wonder how many new bureaucreacies and studies it creates?

Vote them out. Vote them all out.