The CFPA will prevent theft and looting and fraud through prevention of issuing sub-prime loans with adjustable rates, etc. etc. Let us give you a real-life example of how adjustable rates were adjusting in the past from from 3.75% to 5.75% to 7.75% to 9.75% to 11.75%. So, since 11.75% is more than 3 times 3.75%, if you were paying 35% of your salary when the interest rate was 3.75%, you will mathematically get foreclosed when it crept up to 11.75%. The smarter ones were counting on either refinancing or flipping. To learn more, please refer to Sam Mishra's 30 minute speech provided as a podcast in the Real Estate Section of this website. But all this was in the past. People don’t take out sub-prime loans any more. The Indy Macs of the world are bankrupt. Instead of creating the CFPA, if the government instead gave 27000 dollars to each consumer, for the 8 trillion dollars which the Wall Street bankers drained through the Federal Reserve and the US treasury, which divided by 300 million Americans works out to 27,000 dollars, that would have been good bottom up revival of the economy. That would have really boosted the C component in the GDP = C + I + G macro-economic equation. <Note: But that would not have paid for the Goldman bonus. And apparently, that is more important to this administration than boosting the national GDP.>

The FSOC or the Financial Services Oversight Council, which will be chaired by the Treasury, will also have the Federal Reserve Chairman as a amember. While it looks like snubbing Dr. Ben Bernanke and elevating Secretary Timothy Geithner, it actually gives more power to the Federal Reserve. In fact the 101 page report states: the Federal Reserve currently holds regulatory responsibilities over bank holding companies and is best suited to take on authority and accountability for consolidated supervision of all Tier 1 FHCs. This FSOC will also have as members the chairmen and women of FDIC, SEC, and the newly crafted NBS or National Bank Supervisor. Coming back to who will chair this FSOC, as in the US treasury secretary, let’s not forget what the honorable secretary had to say about Goldman a few months ago (either in February or March of 2009) when quizzed by the Senators on whether the multi-million compensation guzzling  CEO of Goldman should not be axed, for he laid off 10% of his work-force, while paying his cronies and huge bonus? Well what the Senator did not add was all this was done directly or indirectly through the tax dollars, for Goldman received 12.9 billion dollar handout from AIG, and also received 10 billion dollars from TARP, and they have returned the 10 billion to escape the compensation czar. But what is interesting is what the honorable secretary had to say in reply: it is up to the Goldman board to decide that.

Here, an analogy is in order. It is like your home town police chief chiding all your home town cops after a major bank robbery, when he knows who the robbers are, for the robbers have robbed the bank and partying with the looted money in a nearby town, which the police chief will join a little later, after doing his obligatory chiding and admonition. This Financial Regulatory Reform is akin to that police chief chiding the cops: let’s clean up our act. Let’s not let it happen again. The bank got looted. The town suffered. Instead of inspiring the cops: we know who these robbers are and where they party and how they party. Come on boys, let’s catch them... Yeah, the will is lacking in the current administration to catch the real thieves, the wall-street bankers. Putting a Maddoff in jail is just scratching the surface. You want meaningful reform? Then throw a few of those Goldman executives in jail, instead of giving them Treasury jobs!

In fact, that is all this 101 page report does, it is a summary of what happened in the last couple of years, starting with the sub-prime loans, leading up to the financial meltdown. God, the US treasury department hires full-time people for months to write a report like that. Well, you didn’t have to do that, you submissive treasury employees. All you had to was read our articles on real-estate and markets which have been in publication for more than 2 years now, and our articles on the 14 trillion (now 20 trillion dollar value drain),  as in 20 trillion dollar looting and rape of the American consumer by the rich wall-street bankers and their cohorts.

Once the dust settles, and the markets are back up, these wall-street boys will gather together and say: hey, let’s make some money. They will cook up some new derivatives. They will deploy a few hundred lawyers to look for loop-holes in these new committees and new regulations. In other words, these cosmetic regulatory reforms will lead to nothing, for the Wall Street thieves and swindlers are still at play, and the American taxpayer is still the prey. Since the system is corrupt, past treasury secretaries like Rubin and Summers have taken advantage by joining Wall-Street after their public service gigs! Will the current treasury secretary succumb to the temptation of big money?

Advice to the current administration (June 2009): Give the hard working, tax-paying, Americans a break! Don't loot their money to fill the personal bank accounts of the already rich Wall Street Bankers. Appoint the right people for positions of responsibility. If you appoint alums and supporters of Goldman Sachs for key Treasury jobs, the bankers will use the US Treasury (and the tax dollars) as a conduit to drain away (or suck away) value from the American tax-payer. This is unethical, immoral, and sub-human animalistic pandering to the elitistic bankers at the cost of the people who have elected you!