Comments on: CFPA Passes House Committee; Amendment Exempting Auto Dealer Financing Passes, Too

By: OldFatGuy

OldFatGuy — Fri, 23 Oct 2009 00:26:23 +0000

Yep, and up next, health care reform.

They’re probably going to have some shit smelling sack of garbage that they’ll call a public option and then slap each other on the back and make speeches about how tough it was and we should be thankful for their hard work.

At least, that’s how I think it’ll come down in the end. Anyone wanna make any wagers otherwise (friendly wagers only, nothing illegal *g*)

By: Hugh

Hugh — Thu, 22 Oct 2009 22:28:05 +0000

All of the Administration’s reform proposals are crap. The CFPA has been defanged. Either the abusive groups have been exempted or as with financial products the CFPA can’t require them to offer a plain vanilla alternative. Another amendment approved yesterday was to give the Office of the Comptroller of the Currency the power to override state regulations if they are tougher than the federal ones. The OCC was the agency which in 2003 barred state attorney generals from going after predatory lenders, making the housing bubble all but inevitable.

As for derivatives, more crap. The exchanges are owned by banks, run by banks, and banks are the major participants. And all the really dangerous ones are precisely those that will be taken off the exchanges.

All of this is just another series of big fat wet kisses to the financial industry. There isn’t a thimbleful of reform in the lot.

By: EMPY1

EMPY1 — Thu, 22 Oct 2009 22:23:59 +0000

This is also a great example of how Republicans are allowed to gut any effective legislation during negotiations, then vote against it as a unified block anyway. There is no downside for this minority party. Anything that gets passed is bound to be a failure and they can say they voted against the crap in the first place.

The biggest dumbasses are the DINO’s that help out with the gutting (the destruction couldn’t happen without them)and then get to explain why they voted for a failed policy. Sort of like making sure your enemy has enough bullets.

By: EMPY1

EMPY1 — Thu, 22 Oct 2009 22:00:53 +0000

Barney will get what he wants. The opportunity to crow about passing this load of crap that will have very little affect on anything. Oh, he will say he was powerless to do anything about all the amendments that gut the bill. He will be all over MSNBC and CNN telling everyone how great it is that he got something done and any mention of all the exemptions will be met with the following quote: “We weren’t trying to regulate every financial transaction in the country.”
Nice job chairman. You shouldn’t need much of a budget for an agency that doesn’t really regulate much.

Welcome to a preview of health care reform. Lots of big talk and back slapping, but not much actual reform of anything.

By: OldFatGuy

OldFatGuy — Thu, 22 Oct 2009 21:14:01 +0000

The rule of 78 boils down to this. You pay all the interest (usually at a very high rate) up front. If you have a five year loan and you come into some money and can pay the loan off after the first year, you find you’ve already paid most of the interest for the entire term.

Which is EXACTLY why it’s a total ripoff, they’ve gotten you to pay five years worth interest in one year.

And for those who supported this, it just shows they support ripoff artist more than regular folks. Gee, betting that got unanimous Republican support.

By: OldFatGuy

OldFatGuy — Thu, 22 Oct 2009 21:09:19 +0000

Pretty much all I needed to read. (R) translates pretty much exactly into “crooked motherfucker”.

Fixed.

By: Teddy Partridge

Teddy Partridge — Thu, 22 Oct 2009 20:54:12 +0000

This is crap, because Americans will not understand that some of our transactions are protected by the Feds and others are not, while the credit providers will understand very well what’s covered and what’s not.

“Hey, would you like a car with that mortgage?” might be the refrain.

By: tinman1967

tinman1967 — Thu, 22 Oct 2009 20:43:35 +0000

Oh, and lets not forget the guys that let you make 47 of 48 payments, and end repo-ing your car if you’re late on payment 48.

By: tinman1967

tinman1967 — Thu, 22 Oct 2009 20:40:25 +0000

But seriously folks…..
The rule of 78 boils down to this. You pay all the interest (usually at a very high rate) up front. If you have a five year loan and you come into some money and can pay the loan off after the first year, you find you’ve already paid most of the interest for the entire term. At which point it makes no sense to pay off the loan early. If you then calculated the loan on an annual basis for that year it would be….high….very, very high.
I will say this. If Barney Frank opposed this he must not have any independent auto dealers in his district.

By: Gabriele

Gabriele — Thu, 22 Oct 2009 20:38:26 +0000

So how exactly is this going to protect the consumers from the vultures on Wall Street. It seems this list of exemptions (not even considering the auto loans) makes it pretty difficult to regulate anything. Am I missing something, or is it not exactly these derivatives that are now exempt that caused all the trouble in the first place.