Reform or Refrain - What Will Become of the Push to Reform the Financial Markets

It is no secret that the financial markets have not performed at there best. The free market by default will always be on the move, sometimes up, and sometimes down.

The last few years has been a bit skewed if we go by the history of the financial markets. We have not seen performance this low since the Great Depression.

Should the government reform the financial markets and current regulatory practices?


The federal government has already stepped in and bailed out or contributed to the financial stability of most of the large financial institutions and banks who are in large part the reason for the economic down turn of the economy. Just as the the government has reasoned that they needed to step in and aid the financial institutions so to do they believe that they need to step in and take a bigger presence as a government regulatory force in the broader financial markets and financial services industry. However as one might imagine there has been some negative feedback from the financial institutions and from many politicians.

Shouldn't the government step in and play a larger role given the fact that they already have stepped in the form of financial aid to these very same institutions? Many say yes. However just the many say no. The argument and rebuttal to this proposal is that regulators and the government will have a negative impact on the markets as they will increase artificial constraints and will increase the degree of uncertainty for investors.

This seems a fair argument as regulatory bodies will make mistakes as they are only human in the end. plus there is also room for the unseen and unintended consequences that seem to always pop up when Uncle Sam gets in the way and these blunders are not easily changed if they don't work. Plus it is arguable to say that the regulatory bodies have done a mediocre job thus far in enforcing the current line up of rules and regulations that are already in place for financial markets and the business world.

On the other hand there does seem to be a obvious problem with the markets at this given point and time. Also to be fair to the regulatory bodies such as the FED and the FDIC there are some loop holes that need to be fixed so that these guys can have the control they need over non bank deposit financial institutions whom leverage up to obscene levels and add systemic risk to the downside for everybody. Such institutions are not subject to the same liquidity or capitol levels that the typical savings and loan bank is held to. Thus these guys potentially can take things to far and as of now it seems as if they have.

Given these above notions I would like to hear what people think. Should there be added regulation to the world of finance?

If yes what do you think should be done?

Debt Help and Debt Solution

The Economy is in a bad place. This is the result of careless and irresponsible lending and borrowing.

The major banks and financial institutions are gasping for cash simillar to a smoker gasping for air. This cancer like smokers fit is causing financial ruin. The worst part of this idea is that it may only be half way through.

At the pit of this massive mess of financial hardship is the American consumer and the American dream. Both exist with the risk of becoming a history lesson.

Both businesses and consumers, are being bled to death through fees and hiked interest rates and at the same time there borrowing limits and lines of credit are being strangled and terminated left and right.

Is There Debt Solution for Those in Need of Debt Help?

The economy, the consumer, the banking system, the small, large, new, and old businesses as well as almost every industry are all in desperate need of debt solution.

What are Debt Solutions?

Debt Solutions are as the term implies a solution or "fix" to a "broken" or problematic debt scenario, agreement, or situation. For instance say a credit card consumer has lost a job and thus financed three months of living expenses on that shiny old master card and now this poor consumer who still has no job and now no credit left, has no money to make credit card payments. This consumer has just developed a debt problem via Credit Card Debt for both himself as well as the lender. Also created here is a need for debt help. The Consumer may seek out a debt settlement service or some similar form of debt help as a means to obtaining a favorable debt solution. At the same time Master Card or the bank lending the money may seek out the services of a debt collector.

There is some more that I would like to add about debt settlement, debt help, debt collections, creditors, and regulatory bodies such as the FTC.

Late summer of 2010 the FTC announced that they have created some new regulations and FTC debt settlement laws that will create some difficulity for existing debt settlement firms. They will no longer be able to collect upfront fee's and there are some other restrictions that they will have to take in to account. The real damage is done through the campaign the media has taken against the debt settlement companies that are for profit entities. There is some real wrong and manipulation being thrown at the American consumer who needs debt help. That link will go to a more recent post on this finance blog that goes into more detail. I encourage all to take a look.

Debt Solutions will play a big part in the economic recovery effort.

Basic Forms of Debt Solution

• Debt Settlement
• Debt Management
• Debt Relief
• Bankruptcy
• Debt Collection
• Debt Mitigation
• Debt Resolution 
• Loss Mitigation

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