Obama: New consumer protections 'essential'

Discussion in 'Politics' started by JDL, Jun 20, 2009.

  1. JDL


    About time:

    WASHINGTON – President Barack Obama is warning critics of his vast financial overhaul plan that he has no patience for debate from hard-line defenders of a system that has exploited bewildered consumers. Pushing for a law this year, Obama said: "While I'm not spoiling for a fight, I'm ready for one."

    Obama used his weekly radio and Internet address on Saturday to defend a proposal, unveiled last week, that would impose and enforce new rules for the nation's embattled financial system. The goal is to prevent a repeat of the breakdown that has sent the U.S. economy reeling, but such a complex rewriting of the rules faces a fight in Congress and opposition from some leaders in the banking and insurance world who have found fault with some details.

    Appealing to everyday Americans, Obama focused on one part of his plan: a new consumer watchdog office that would protect people's interests.

    "This is essential," Obama said. "For this crisis may have started on Wall Street. But its impacts have been felt by ordinary Americans who rely on credit cards, home loans and other financial instruments."

    The new Consumer Financial Protection Agency would specifically take over oversight of mortgages, requiring that lenders give customers the option of "plain vanilla" plans with straightforward and affordable terms, among other changes.

    "It will have the power to set tough new rules so that companies compete by offering innovative products that consumers actually want and actually understand," Obama said. "Those ridiculous contracts — pages of fine print that no one can figure out — will be a thing of the past. You'll be able to compare products, with descriptions in plain language, to see what is best for you."

    More broadly, Obama's changes would begin to reverse the easing on federal regulations pressed by President Ronald Reagan in the 1980s. Democratic leaders in Congress are promising legislation will get passed this year, but that depends in part on how key questions are addressed on Capitol Hill, including the role of the Federal Reserve.

    "I welcome a debate about how we can make sure our regulations work for businesses and consumers," Obama said. "But what I will not accept — what I will vigorously oppose — are those who do not argue in good faith."

    By that, Obama said, he meant those who defend the status quo at any cost. He didn't name any people or organizations but said special interests are already mobilizing to fight change. He called that typical Washington.

    "These are the interests that have benefited from a system which allowed ordinary Americans to be exploited," Obama said. The president said he would stand up for his plans, saying: "While I'm not spoiling for a fight, I'm ready for one. The most important thing we can do to put this era of irresponsibility in the past is to take responsibility now."
  2. JDL


  3. Having another Czar and office is just more government proliferation.

    There are already laws against screwing the consumer. All that needs to be done is make a public issue about punishing some violators, and Voila! Problem solved.
  4. Juat keep dumbing everyone down. There is no need for anyone anymore to take responsibility for anything. BO and is cape will save me from all evil in the world and assure me that being stupid is the path of least resistance.

    Who is the breakfast czar? I want something to eat and need to be certain someone is looking out for me. Because if I become fat I am going to sue someone!!
  5. I must say that the general populace brought this on themselves. When a society no longer takes responsibility for its actions you need (or there is a perceived need) for mom and dad to coral that kids and do it for them. Or perhaps mom and dad see it a a way to get better control over the kids by promising them protection from the big bad world.
  6. Eight


    Have you seen the pile of papers they shove across the table when you close a real estate deal? You cannot do enough due diligence to really know what you are signing... and an attorney that may or may not know what you are signing is likely to cost a lot..

    Obama's admin so far is actually doing a good job with lots of things, if they can simplify things for the consumers and make our lives better, fine, they should do that... The Clinton admin had economic advisers that were more conservative than Reagan's almost and things went pretty well... maybe Democrats [I never vote for them] are actually better equipped to be conservatives than conservatives are. It appears that Democrats have learned that conservatism is what works at least.
  7. Yes I have seen the papers shoved across the table at me, more than once. Yes I have read every word of every paragraph including the "fine print" before signing.

    Can the process be simplified, most definitely. Should it be simplified, most definitely.

    Should a person sign something they cannot read or do not understand, no. Do they, yes, to their detriment.

    Why are things so complicated? Ask that question and get a good soild answer before making a blanket statement that we need a consumer protection agency. I think you will find things are so complicated because they are crafted by lawyers that must take into account: current government regulation at the federal, state, and local level; protect the lender from any possible lawsuit the consumer is likely to file (thank you frivolous lawsuits); cover any number of future possibilities regarding the borrowers decisions to repay the loan; ect, etc, etc.

    The worst thing to do is make excuses for not reading the contract before you sign and then cry to the government because you got your ass in a bind.
  8. +1
  9. "Consumer protection" had nothing to do with the financial melt down at all. - - Geez, how stupid are people anyway? Just Google "Federal Reserve" "derivatives" "Community Reinvestment Act" at least as a start. (If youre too lazy to do your own homework, just go back to watching the boob tube.) - - More diversions to issues that are absolutely irrelevant but get sound bites on t.v. As useless as the million dollar level 'cuts' that O. touted a little while back - - - will spending trillions.
  10. Lucrum


    + 2
    #10     Jun 20, 2009