Financial Reform??? Mabey!

Should the Senate pass a weak financial reform bill to pacify both the Republicans and Democrats? According to Paul Krugman, editor for the New York Times “No reform is better than a cosmetic reform that just covers up failure to act.” It is important to understand that a strong reform bill, supported by Obama passed the House last year. This was possible largely in part by majority rule with Democrats in control. Opposition to financial reform was low, which is not the case in the Senate. Politics as usual, Republicans are most certain to vote against any serious reform presented by the Democrats.

Krugman makes some valid arguments and points out, “Republicans claimed that they would end banking excesses by introducing market-discipline in the future.” Bank and market regulation is necessary to protect the consumers. The Senate, according to Krugman, should highlight the dispute over a proposed Consumer Financial Protection Agency and take a firm stand is passing a strong finance bill. Krugman’s view is mainly directed at Liberals and Democrats, but all people affected by our current financial crisis should take heed.

Republicans and Democrats agreeing to a compromise just to get a financial bill passed with no real implications or direction could spell disaster in the future. Looking back in history, there are clear examples. The economic crisis and depression of the 1890’s and 1930’s were greatly influenced by weak financial reform and excessive borrowing by consumers and businesses.

Overall, according to facts and logic, it is my opinion that the Senate needs to take a firm stand and pass a strong financial reform. In comparison, a health care bill could pass on weak reform and change it along the way, but our financial industry needs strong guidelines and a governing agency that supports not only business but the American consumer.http://www.nytimes.com/2010/03/01/opinion/01krugman.html?ref=opinion