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The Dodd Frank Act In The 1930's

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Since the start of the recession, 8.8 million jobs have been lost, according to the Bureau of Labor Statistics. The government could have done a lot more to prevent this market crash. For instance the US was borrowing close to a trillion dollars a year from other countries before the Great Recession. This lead to a capital inflow which fueled the United States for a financial and real estate boom. Also, the regulations could have been more straightforward about applying prudential principles to all of the complex financial operations in which financial institutions consisted of. The Great Recession was triggered by the government allowing banks to give out loose loans, not holding the banks accountable for sold debts and not holding bankers…show more content…
There are many of people who sit on the trading floors of Wall Street banks. And just sit there and watch the trading floor as their job. People just sitting on the floor watching what is going on is not nearly enough to prevent another crash. One of the main new laws that came into effect was the Dodd Frank regulation which requires banks to have more equity (more dollars on a balance sheet). Which is still used today. The Act marks the greatest legislative change to US financial regulation since the financial legislation in the 1930’s. Many people argued that it was unrealistic for the Government to have control over the financial sector of the world without addressing the real causes of the financial panic. Dodd Frank Act makes it very hard for people to get ridiculous mortgage deals, but it also makes it hard for people who can afford the mortgage and pay it to get the mortgages. This slowed down the economy so the government needs to add certain regulations to different parts of the law to make it more simple and easier to get a mortgage. While removing the few parts of the law that are there for no reason. The United States federal law places regulation of the financial industry in the hands of the government. Many people still have the question could it happen again? Are the regulations in place today enough? In 2011 a CNN poll, recorded nearly 50 percent of Americans believed it could happen again another huge financial crisis. (source) “the Dodd-Frank Act (2010), legislation co-sponsored by the two politicians (now out of office) who were most in the pay of Fannie and Freddie, and most responsible also for the policies that triggered the mortgage crisis of 2008-2009.” This information and the facts just shows how the regulations today still are not strict enough to prevent another financial
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