Financial Reform Main Street vs. Wall Street

Since the passage of the health care bill overhaul, the next thing on Congresses plate has been financial reform and overhaul. This Democratic-sponsored bill is in direct response to the government's use of bailing out large "Wall Street" players in the Mortgage crisis bank downfall of 2009. Many of these large financial institutions gambled and bet on sub prime mortgages causing inflation in the housing markets and the collapse of the "American Dream." People were so eager to buy homes, and Wall Street was so greedy to make money that investors lost sight of what a "good" investment was. They bet on bad credit mortgages mixed with high interest-only loan which only lead to payment defaults, foreclosures and price/equity drops. Another large player in the economic crisis of 2009 was the American auto companies, losing out on profits to more efficient, higher-demanded European, Japanese and other automakers. When the government bailed out all of these large businesses with tax payer's dollars, everyone bi-partisian agreed it had to happen to prevent a financial meltdown but most agree this was not a "good use" or even "legal use" of the American taxpayers dollars. Private industries WANTED and still want to remain private and separate from the government yet when they needed bailout funds most were all too willing to take their "handout" So what happened on main street? People lost jobs, homes, belongings, health benefits and other items, including for some the chance to ever own a home again, the chance to ever achieve that American dream. So what happened to Wall Street? Well profits definitely dropped, investors lost gains but in the end MOST of these financial institutions AND auto dealers got to keep their businesses going as they were deemed "too big too fail". So what now? Congress is currently under going financial reform policy which will hopefully prevent this kind of "reckless" spending from Wall Street to ever happen again. They are currently trying to set up rules and agencies that will monitor these companies in an effort to hopefully keep investors on the straight and narrow. Investors and many large financial companies have publicly come out against any Federal regulation within the financial industry but the message from Congress is, "You don't get a choice" Over the next few months, the House and the Senate will fight out the exact language and amendments included in the bill but hopefully it will end as a win for main street. After all they are the ones who truly lost in this battle on Wall Street.

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