After thwarting the chance to allow financial reform debate to hit the floor of the Congress, the Republican Party finally obliged to begin talks on how to better prepare the U.S. economy for another collapse like the one in 2008.
Although a bipartisan effort by both Democrat Christopher Dodd and Republican Richard Shelby has been going on for months now, it still seems there is disconnect between the two parties. Shocking that the two parties are disagreeing.
However, with the realization by all policymakers that the U.S. economy is no better off to protect the country from another economic collapse than it was in 2008, realistic reforms should have already been made, and major reforms at that. It has been nearly two years since the economy started its mighty downturn and yet there have been no concrete steps to thwart another.
Simple measures, despite political posturing, should be common sense law despite what letter is next to the policy maker’s name. Things such as keeping the taxpayers off the hook when bad banks fail; because of reckless risk taking that may or may not have been legal, citizens across the country were footed the bill.
Another reform should include removing the label of too big to fail for mega-banks. This is not an oligarchy. Companies that control the amount of money that banks do, make the entire country dependent on their success and grossly hurt in their failure.
Because of how Washington is presently set up, where bank lobbyists outnumber Congressman four-fold, reform has taken far too long. Controlling campaign contributions in the electoral system would surely remove the special interests needs that are rampant on the hill.
Now more than ever financial reforms need to be enacted, or else, once again, taxpayers will have to clean up the mess.