Obama Heads to the home of the Bulls and Bears

President Obama heads to Wall Street this Monday to urge financial reform. Financial regulatory systems need an overhaul to avoid the abuses and failures that led to near economic disaster last year.

Most of the focus this past summer has been on health care reform which is also part of our national financial woes. However, the banking, mortgage and insurance industries need to come back to being blips on the radar if serious reform is to take place and future disasters are to be avoided.

According the Washington Post:

He will urge members of the financial community “to take responsibility, not only to support reforming the regulatory system but also to avoid a return to the practices on Wall Street that led us to the financial crisis,” an administration official said Sunday.

Building up to that message, Treasury Secretary Timothy F. Geithner said recently that “greater urgency” is needed to push through regulatory reform and insisted that “fundamental change is necessary.” National economic adviser Lawrence H. Summers said in an interview that “this crisis will leave a legacy of strengthened regulation.”

Interestingly enough, while the job market hovers just under 10% unemployment, and retail spending is still flatlining, the stock market has gone up on average 45% since March. September which historically is the poorest month for stock gains hasn’t been that bad. Since September 1, the Dow has risen nearly 300 points. According to Bulls and Bears (Fox News) the average Joe 6 pack is just poking a toe back into the water and is investing in the stock market again after the melt down that began last September.

So who will howl about financial regulation? Probably those who are being regulated and need it the most. What are some reforms that contributors on anti see a need for?

[ UPDATE:  TEXT OF PRESIDENT OBAMA’S ADDRESS TO WALL STREET]

New Credit Card Rules Go Into Effect

Credit cards companies have been particularly nefarious lately. They have risen interest rates, reduced credit limits, tightened credit and have tried other sneaky stuff to get in under the wire. New federal rules go into effect on August 20 and again in February. Hopefully, these new laws will help consumers.

What credit card horror stories do you all know about? How will these rules change how we do business?

Buffett’s Greenback Effect

We have looked at enough stupid. Let’s look at SMART for a while.

I like Warren Buffett. Anyone that rich or who has a fund that functions like Berkshire Hathaway deserves to be listened to. I listened to him last fall when our country sat on the brink of financial disaster. Now he has posted some strong words in the op ed section of the NY Times. I don’t think Buffett is political–he is just old, wise and rich.

IN nature, every action has consequences, a phenomenon called the butterfly effect. These consequences, moreover, are not necessarily proportional. For example, doubling the carbon dioxide we belch into the atmosphere may far more than double the subsequent problems for society. Realizing this, the world properly worries about greenhouse emissions.

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