Ever hear of H.R. 4173? What about, the Wall Street Reform and Consumer Protection Act of 2009? Still nothing? Well, that’s not surprising. Your trusted and devoted Representatives on the House Financial Services Committee have been feverishly working on this legislation since the last summer. And fortunately for you, it managed to clear most major Congressional hurdles under cover of the public furor over Health Care Reform. After all, they didn’t want you to worry your pretty little heads over such confusing and innocuous matters like, “Wall Street” and “bank failures” during the holidays. Don’t you just love the way they always have your best interests at heart?
The bad news is, this new legislation when (not, “if”) passed, will create at least four new Federal regulatory agencies. It also grants heretofore unimaginable powers to the Federal Reserve to police risk and take over any US company which it deems a threat to economic security and stability. Now correct me if I’m wrong, but isn’t the Federal Reserve that same institution that is not actually subject to government control? So they are granting this entity the power to literally plan, control and coordinate all economic activity as it sees fit.
You should know that H.R. 4173 also protects “Americans from unfair and abusive financial products and services” and “enables regulators to ban inappropriate or imprudently risky compensation practices.” Does anyone care to specifically define these statements? How does one objectively define terms such as “unfair” and “inappropriate” in such a way as to ensure that persons looking to start a new fund or financial services venture can accurately plan their activities. That is the essence of “rule of law.” Laws must be written with such clarity that any lay person is able to determine which course of action is both profitable and permissible. It allows one to properly gauge exposure. But with language like this, financial services will be nothing more that a roll of the dice and the only people capable of determining whether one’s actions are permissible or not will be those who promulgate and enforce the rules. Worst of all such determinations will as always, be made after-the-fact. That’s right, you will have no way of knowing if you’ve violated the rules until some bureaucrat makes the call. Contrary to the claim of House Financial Services Committee Chairman, Barney Frank, these are not “mere common sense rules of the road.” Pardon me but when I elect to drive my car, I do so fully aware of the rules and risk of violation. I know that I risk losing my life, liberty and/or property for breaking actual laws and not just behaving in an “unfair” or “inappropriate” manner.
Based on what I’ve seen thus far, most Americans don’t really find this all that alarming. So prepare yourselves for yet another phase in the road to serfdom. Not to worry though, I hear they’re doing wonderful things with chains and cages these days.
The bad news is, this new legislation when (not, “if”) passed, will create at least four new Federal regulatory agencies. It also grants heretofore unimaginable powers to the Federal Reserve to police risk and take over any US company which it deems a threat to economic security and stability. Now correct me if I’m wrong, but isn’t the Federal Reserve that same institution that is not actually subject to government control? So they are granting this entity the power to literally plan, control and coordinate all economic activity as it sees fit.
You should know that H.R. 4173 also protects “Americans from unfair and abusive financial products and services” and “enables regulators to ban inappropriate or imprudently risky compensation practices.” Does anyone care to specifically define these statements? How does one objectively define terms such as “unfair” and “inappropriate” in such a way as to ensure that persons looking to start a new fund or financial services venture can accurately plan their activities. That is the essence of “rule of law.” Laws must be written with such clarity that any lay person is able to determine which course of action is both profitable and permissible. It allows one to properly gauge exposure. But with language like this, financial services will be nothing more that a roll of the dice and the only people capable of determining whether one’s actions are permissible or not will be those who promulgate and enforce the rules. Worst of all such determinations will as always, be made after-the-fact. That’s right, you will have no way of knowing if you’ve violated the rules until some bureaucrat makes the call. Contrary to the claim of House Financial Services Committee Chairman, Barney Frank, these are not “mere common sense rules of the road.” Pardon me but when I elect to drive my car, I do so fully aware of the rules and risk of violation. I know that I risk losing my life, liberty and/or property for breaking actual laws and not just behaving in an “unfair” or “inappropriate” manner.
Based on what I’ve seen thus far, most Americans don’t really find this all that alarming. So prepare yourselves for yet another phase in the road to serfdom. Not to worry though, I hear they’re doing wonderful things with chains and cages these days.
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