Today’s the day. After a solid two years hearing about the magnitude of the recession, the stalling of the housing market, the ridiculous unemployment rate, the missteps of the richest banks in the country, and an increasingly grim stream of predictions for the financial future, President Obama signs the Dodd-Frank Reform Bill into effect.
New Legislation Aims For Transparency And Consumer Protection
The Bill creates a handful of autonomous, regulatory agencies to protect consumers and to foresee enormous risks in banks and the economy, as well as a push toward financial literacy for the general public. The legislation reeks of Democrat; it expands the current government to protect the average consumer from the fallout of bank failures and other “black swans.”
An Educated Investor Is An Effective Investor
Knowledge is always power, but in finance, it’s protection as well. The intangibility of the economy is at odds with the weight of its effect on our lives, and while we can’t don recession-proof shields (if only!), we can figure out where our money is safest, how our financial future is best arranged, and how much risk we’re taking when investing in the stock market. To educate yourself, give our Investing Basics a read, and sign up for Investing Bootcamp while you’re at it. While we can’t see “the economy,” we can do our best to keep from feeling it yank the rug out from under our feet.
The Bill Is Optimistic
Called the “biggest overhaul of the U.S. financial-regulatory system since the Great Depression,” by Bloomberg and “the strongest consumer financial protections in history” by the Commander-In-Chief himself, the underlying message is one of hope. Hope that we can extricate ourselves from a thoroughly deflated economy, that we can see what’s happening in the banks before losing our homes, and that the government can effectively ally itself with the average consumer.