Those wacky Republicans are at it again

Those wacky Republicans are at it again. With the Wall Street Reform bill on the floor of the Senate, those wacky Republicans “vow to stall” claiming the bill “means more government bureaucracy and more intrusion into the private sector.” Well Duh! Look what happened when Congress removed “intrusion into the private sector” and lifted the ban on credit default swaps. That’s right, credit default swaps, also called derivatives, which are at the heart of the 2008 financial collapse were actually illegal for most of the 20th Century. Why? because they caused a financial collapse in 1907 (Panic of 1907). But in 2000 Congress passed the “Commodity Futures Modernization Act” which on the last page states:

(c) PREEMPTION.—This title shall supersede and preempt the application of any State or local law that prohibits or regulates gaming or the operation of bucket shops (other than antifraud provisions of general applicability) in the case of — (1) a hybrid instrument that is predominantly a banking product; or (2) a covered swap agreement.

Even now banks are aggressively lobbying to leave these swap agreements unregulated, and those wacky Republicans would like to oblige. In fact, their latest counter to the Wall Street Reform bill on the floor of the Senate softens the current bill’s approach to regulating derivatives and creates obvious loopholes.

I’m no expert, but if you undo a 100-year old financial protection, and it blows up into the second worst financial crises in history, doesn’t it make sense to restore the protection?

To get an even better understanding of credit default swaps and derivatives take a look at this explanation from 60 minutes that aired in 2008–hopefully someone in Congress will watch it too

Tags: Economy, National Issues by Jay Stuart
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Reporters That Look for Sound Bytes instead of news

Reporters are clearly looking for sound bytes instead of  real news. In an exclusive interview with President Obama, ABC News’ George Stephanopoulos asked the President what he thought of Sarah Palin’s criticism of his nuclear deal. The President was right to point out that Sarah Palin  “is not much of an expert on nuclear issues.” So that begs the question why didn’t George Stephanopoulos ask the President about John McCain’s opinion who has vast experience in foreign policy and nuclear issues. It’s most likely that question would not get as much coverage, headlines or controversy. Shame on you George. I’ve listened to you long enough to know that you have little respect for Sarah Palin’s opinions. Keep your eye on the ball and stick to what’s important–Sarah Palin’s opinion is not!

Tags: National Issues, Politics by Jay Stuart
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An unforeseen benefit of health care reform

There are certainly many pluses to finally having the new health care reform bill. But a new one I recently overheard while visiting a college campus. It appears that many pre-med students are reconsidering a career in medicine because they fear the opportunity for wealth has gone down. In other words, students who were going into medicine for the money are changing their minds. What we will be left with are pre-med students who really want to be doctors for the sake of treating the sick and not just in for the money. Imagine going to a doctor who is more passionate about treating you  and your health than how much they make. What a refreshing change that could be!

Tags: Health, Medicine by Jay Stuart
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