Finance talks Hit thorny Issues

Finance talks Hit thorny Issues
Paletta, D. (2009, Oct 27). Finance talks Hit thorny Issues. The Wall Street Journal. From Google News. Retrieved on October 28, 2009. http://online.wsj.com/article/SB125659342902908937.html?mod=WSJ_hpp_sections_news
Vocabularies:
Words Part of speech Definition
legislation noun A law or set of laws.
faltering adj Becoming less effective or successful.
insolvency adj Not having enough money to pay what you owe.
boost verb increase or improve something and make it more successful.
regulations noun An official rule or order.
recurrence noun An occasion when something that has happened before happens again

fraud noun The crime of deceiving people in order to gain something such as money deception nounThe act of deliberately making someone believes something that is not true.



Summary:




This article discusses Finance talks and thorny Issues. House lawmakers prepare to issue the draft legislation to thorny issues to overhaul financial rules so that the government can take over management of any faltering firm whose insolvency could overhang U.S economy or financial markets. Also, they will give a new role to the Federal Reserve to policing markets’ health. The draft legislation will give the government power to make the faltering and insolvent firms under receivership or conservatorship of government. Additionally, the legislation requires faltering companies to boost their capital holdings if they need any support from government. But the important question was from Republicans; they ask, how much money could the government lend to a failing institution?

Reaction:


In my opinion, after the financial crisis in 2008, it is very important for governments to take control of the financial system, shareholding companies, financial institutions, and financial brokers. At this stage, the governments should intervene to protect the economy from adventurers and gamblers, by issuing laws and regulations that you think non-recurrence of such a crisis into the future. There are many investors who do not think only of profits, even if achieved through fraud and deception. But what worries me that is return to the government control over the major institutions, and then the economic return to the public sector. I mean, it is Transformation from Capitalism economy system to the participatory economy system