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]
