Improving consumer protection is a less vital factor in the reform package. It focuses on ancillary issues such as predatory lending and credit card interest. Improving protections may help to reduce the incidence of consumer bankruptcy, but has two negative consequences. The first is that the illusion of protection can encourage increased risk-taking behavior among consumers. The second is that increasing consumer protection fails to address the underlying issue, which is the atrocious level of financial literacy among the general population. These reforms, therefore, may not be effective.
The fourth set of reforms addresses the ability of government to respond to the crisis. The Federal Reserve's involvement in stabilizing the financial industry may have been needed at the time, but is inappropriate in the context of the Fed's tradition role. Furthermore, the FDIC has been forced into desperate action as its reserves have run low in the face of 100+ bank failures this year alone. The specifics of this reform have yet to be revealed. It is intended to provide a third option to bailout and collapse. Anything that prevents further bailouts should be considered good.
These reforms...
Policy Problem & Proposal Policy Problem The United States faces a $1.4 trillion national deficit, and partisan debate about how to address it is threatening economic stability on top of the shaky "recovery" from the 2009 financial crisis. Yet American corporations continue to enjoy tax loopholes that reduce their taxes to unprecedented low levels. Republicans argue that corporations must retain their preferred tax status in order to maintain and create jobs. This
Economic Crisis Policies US current economic crisis is considered to be started from real estate sector. The real sector started to decline in 2006 and it accelerated in 2007 and 2008. Housing prices have fallen from the peak from about 25% so far. The decline in prices left homeowners with no option and they were unable to refinance their mortgages and causes default of mortgages. This default of mortgages and loans
Fiscal and Monetary Policy in a Fictitious Economic Scenario Recently, all of Wall Street waited with bated breath for Allen Greenspan to announce what would be the shift in the Federal Reserve's upcoming policy regarding interest rates, given that our national economy was apparently recovering at a much stronger than expected pace. Dismayed at the news that the Fed was likely to raise rates, thus encouraging saving and tempering consumer spending,
Obama energy policy in relation to the economy of the United State of America's 21st century economy. It begins with a general description of the policies and then proceeds and outlines the various elements of the policy. After the analysis the paper then presents the criticisms that are waged against the policy. A conclusions and recommendations are then presented at the end of the paper. These are geared towards
Focused on cutting interest rates in order to obstruct economic decline and to prevent the destructive incursion of inflation, the Federal Reserve has acted independently (though with the administration's endorsement) to counteract mild or regressive growth patterns. After several years of sluggish economic performance and a response on the part of the Federal Reserve by way of a consistent reduction in interest rates, a number of factors have conspired
HRM Policies Human resources play an integral role in any organization. The allocation of human capital is critical to the overall success of the organization. Depending on the particular industry, talent and its subsequent retention is directly correlated to the overall profitability of the firm. In many instances, as is the case in our current economic cycle, improper human resource activity can have a profound effect on our overall society. Not
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