|Quoting fr8mech (Reply 1):|
So, more and more of the private sector is falling under government control. This is something to be happy about?
Ubnfortunately in this case. Yes.
This bill addresses a lot of the problems that led to the disaster in the last two years.
1. Mortgage Reform: No More "Liar Loans' or loans without documentation. You would think this would have been an easy one for most lenders to follow, but since brokers kept getting paid to sell mortgages, they stopped caring about whether consumers could pay for them or not. Now Authentic documentation is required . You may argue that this is unnecessary regulation, but as we are learning about now, it is not unnecessary.
The down side. It will cause housing prices to keep going down for awhile. Not pretty, but that is what we get in this free trade econony of globalization where we can't hold Manufacturing jobs.
2. Prepayment Penalties will no longer be allowed.
I like this one. No one should have to pay a penalty for being able to pay off a debt sooner than required. Banks can use the added capital to go make more loans so they shouldn't profit off it both ways.
3. Debt Card Interchange Fees.
This could have been left out for all I care. I say let the free market decide. However mastercard and visa have a pretty heavy duopoly on this, so I can see this being needed to hold down the charges.
4. An All-Powerful Consumer Watchdog
This is the part of the bill that troubles me. I see the need for it with payday loans and all, but I do think this is a waste of spending.
5. Bank Bailouts. This language is definately needed. We need to know what and where the governemnt will step in. It also makes the lines pretty clear as to what will occur if they do step in.
The investor portions of the bill are pork and will protect no one that doesn't investigate items for themselves.
All in all we need thsi bill. Parts of it .. no. But sadly we need most of it.
Older than I just was ,and younger than I will soo be.