New financial reforms are not really necessary to our way of economic life, but they will increase the power of politicians to make certain of their constituents happy. And I am not talking about just voters.
Politicos love power wherever and however they can get it. Unfortunately, this has become a habit in Washington. Especially when it creates a source of contributions to help finance campaigns to get out votes.
So, in the new financial legislation, investors with losses can now sue credit rating organizations for “knowing or reckless” failure. Make an honest mistake as an analyst and you may be a target of an over-zealous lawyer seeking a massive class action case.
Yet, this type of error can sometimes be as easy to make as it is for a baseball outfielder to occasionally flub a fly ball. And you and your boss can get sued.
Since Democrats get well over 90% of the campaign funds from tort lawyers, guess why this tidbit is in the new law passed by Congress?
No comments:
Post a Comment