In today’s voting on enacting the new financial protection bill 60 Senators voted for passing the bill and 38 Senators voted against it. There will be a final voting later this week, but the majority of experts predict that the bill is likely to be signed soon.
There are a lot of criticism towards the bill from the financial experts, mass media, big and small businesses, some Senators and other politicians. The aspect of the reform which is being criticized the most is that the bill will impose strict regulations and restrictions on every type of customer credit except for the industries, which actually caused the financial crisis. Despite all the arguments that the bill is “too complicated” to be enacted and solve financial problems now, the Democrats are promoting it and stating that customers need financial protection as soon as possible.
Personally I don’t understand why the government in such a hurry. Everyone knows that it is not the best time for the American economy. But how can we cope with financial problems by taking responsibility from the initiators of the crisis to those, who don’t have any attitude to it? Moreover, how can the economy be restored if the great number of businesses are regulated and thousands of jobs are eliminated? In my opinion the bill won’t safe the economy. I also think that it isn’t aimed at consumer protection at all.
A lot of customers don’t already resort to credit options, particularly to short-term loans, as they did earlier. The government of each State already control and monitor payday lending industry. There are practically no complaints against payday lenders in the State, where the industry is regulated. The lenders reveal all the conditions and terms of their operations. They do it openly and clearly to borrowers.
I would probably support the financial reform, if it was really aimed at punishing those industries responsible for the crisis. But what is happening now is eluding real problems and affecting a majority of small businesses providing short-term credit options. It will lead to the increasing rate of unemployment, which is destructive for the economy. Hopefully I am mistaken, but I’m pretty sure I am right.