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The US is undoing post-2008 financial regulation and people are worried

The Fed wants to undo the Volcker Rule, which stops banks from trading unless it's for a specific client

The US Federal Reserve – their central banking system – wants to get rid of one of the key regulations put into place after the financial crash, because it's 'too complex'. Uh-oh.

What it means: Post-2008, banks were obviously under a lot of pressure to make sure that whole shebang never happened again.

Recap: In a very summarised nutshell, banks work by taking the money we deposit into them and trading it to make more money. One of the reasons the crash happened is they got carried away betting people's money on deals that never came through, and then losing it all.

The Volcker Rule, one of the regulations to come out of the crash, basically said banks had to prove that the investments they were making were genuinely useful for a client, not just speculative gambles.

But the six biggest banks in America have lobbied to change the rule, saying it's too complex, muddled, and difficult to comply with. Under a new proposal from the Federal Reserve, banks would monitor internally, rather than have to prove themselves to governments.

Nothing's been decided yet – the proposal's got to go through a few more agencies first. But people are already getting worried: even Volcker himself has come out and said he's all for making things simpler, as long as we don't end up rolling right back to where we started, and causing another crash.

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  • RW

    Your right to a degree. You mentioned “the wandering Jew”.

    I elaborate that the Jewish people, historically have tended to migrate almost exclusively to locations that are economically and culturally vibrant already. I would speculate that Jews have thrived in these places and have often improved the bounds of their economies and knowledge base.

    You can also ask; how many massive entertainment conglomerates, Nobel winners or billionaires has Isreal developed? If Jews are so capable, why isn’t Tel Aviv the Rome of our time?

    Jews are successful because they value education, maintain a strong social cohesive, they actively monitor and have a good sense for Zeitgeist wherever they are and they carefully choose the places they settle and congregate themselves heavily in these choice locations.

    But most importantly (haulocaust increased the importance of this aspect), they actually designed their culture for success. They not only attend Harvard, they use what they learned to better the group as a whole. With as much, they studied intricate networking systems, adapted to it and in many cases improved upon them. (See how Japan acquired Aegis warships and made them better).

    Of course there is nothing wrong with any of this. It’s when you elaborately gain disproportionate power in any society where you would stand out, you must take care when attempting to make a society better (Civil Rights movement) and rewriting that society all together (mass immigration). Ask blacks in China, Mexico, Philippines or India how much opportunity they have? Go to businesses owned by their American diaspora and see how many blacks they hire. Go to Silicon Valley and see how many East or South Asian tech workers wish they could work with more black people. California might work as a state, but as a nation, I think your rolling the nuclear dice here. I hope we can succeed as a tolerant pluralistic superpower but at this stage in human societal development, it’s a pipe dream.

    And if Jews really are the icon for success, they would see that fundamental human successes happen over generations. Just look at the rest of the planet? Are we ready?