Wall Street Reform and the Credit Meltdown

Posted by on Sep 26, 2011 in Capitalism, Featured, Portfolio | 55 comments

Wall Street Reform, also called Financial Reform, was a law signed by President of the United States Barack Obama on July 22, 2010. Since the time of th infamous economic crisis of 2007-09  during which millions of jobs were lost, small and large businesses failed, house prices took a catastrophic dive, and savings were completely wiped out, there was a fierce and furious debate taking place regarding accusations of insufficient oversight and regulation of the US financial system.  It was believed by Washington liberals that the non-regulated OTC derivative market, and non-existence of any consumer protection authority, were major causes of the financial crises. Hence, Wall Street Reform was passed in order to make the US financial system more “transparent and accountable”, to help avoid another major economic crisis, and to help protect tax payers’ money. During the course of the Financial Reform, many companies and individuals have tried to repair bad credit caused by the crisis, which many believe is now worse than it was before and heading toward Depression.  Protection of the consumer was the primary goal of the law being passed.  Here is an infographic that will help explain some of the situation in greater detail.  Click to expand: