Do You Think Obama is a Socialist... Do You Care?

[Rath]

TheRealMafoo said:

Rath said:

@TheRealMafoo. That part of the bill should be something you're happy about - they essentially want to make it possible for Freddie Mac and Fannie Mae to actually fail, currently they are too big and too entwined in the market. The want to have the ability to wind them down.

Its actually probably one of the least outrageous things he put into the bill, it was entirely expected after the Fannie and Freddie debacle. His rather extreme regulation was the thing that actually annoyed the banks.

And this is where government shows its corruption.

There is no such thing in the US as a company "to big to fail". The reason: Bankruptcy laws. Without going to much into it, the basic premise of Bankruptcy, is to let government figure out if a company is better off alive then dead, and if so, to bend the rules of capitalism to let them survive.

So, we already have something in place for this (and something that works very well). To make up this thing that government made up ("to big to fail" bullshit), they can now pass laws to grab even more power from the people, and no one cares.

It's government robing the people of their rights, right in front of them. It disgusts me to no end.

Fannie and Freddie were too big to fail. There is such a thing.

If those things had failed they would have taken down pretty much the entire US financial system with them, they just had too many ties to the market to be able to go bankrupt.