U.S. Treasury's proposal for financial deregulation aims to remove key aspects of the Dodd-Frank Act.
Rose Prince

2017-08-25 13:36:00 Fri ET

The U.S. Treasury's June 2017 grand proposal for financial deregulation aims to remove several aspects of the Dodd-Frank Act 2010 such as annual macro stress tests, supervisory bank capital reviews, proprietary trading restrictions, and so forth. Fed Vice Chair Stanley Fischer warns that the current financial deregulation can be extremely dangerous and myopic: "It took almost 80 years after 1930 for America to experience another [global] financial crisis that could have been of that magnitude... now after 10 years everyone wants to return to a status quo before the [next financial downturn]." 

As prior monetary policy turns out to be a rather ineffective solution for the post-crisis macro malaise, fiscal stimulus garners a lion's share of public attention toward lower income taxation and indefinite tax holiday for corporate offshore cash repatriation. Regardless of whether the Dodd-Frank supervisory stress instruments should remain for a more stable U.S. banking system, the Fischer comment rings the alarm bell of fiscal quid pro quo for weak monetary stimulus. This information exchange offers valuable food for thought to the typical stock market investor. While the trend can be his or her friend, the investor needs to weigh the pros and cons of short-term stock price momentum vis-a-vis the close nexus between long-term economic fluctuations and stock market gyrations.

 


If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.

Blog+More
BlackRock CEO Larry Fink suggests that corporations should make a positive contribution to society apart from boosting the bottomline.
Olivia London

2018-01-09 08:33:00 Tuesday ET

BlackRock CEO Larry Fink suggests that corporations should make a positive contribution to society apart from boosting the bottomline.

BlackRock CEO Larry Fink emphasizes his key conviction that public corporations should make a positive contribution to society apart from boosting the botto

+See More
Neoliberal public choice continues to spin national taxation and several other forms of government intervention.
Peter Prince

2019-01-07 18:42:00 Monday ET

Neoliberal public choice continues to spin national taxation and several other forms of government intervention.

Neoliberal public choice continues to spin national taxation and several other forms of government intervention. The key post-crisis consensus focuses on go

+See More
It can be practical for the U.S. to impose the 2% Warren wealth tax on the rich.
Dan Rochefort

2019-02-03 13:39:00 Sunday ET

It can be practical for the U.S. to impose the 2% Warren wealth tax on the rich.

It can be practical for the U.S. to impose the 2% wealth tax on the rich. Democratic Senator Elizabeth Warren proposes a 2% wealth tax on the richest Americ

+See More
President Trump unveils his ambitious $1.5 trillion public infrastructure plan.
Daisy Harvey

2018-02-11 07:30:00 Sunday ET

President Trump unveils his ambitious $1.5 trillion public infrastructure plan.

President Trump unveils his ambitious $1.5 trillion public infrastructure plan. Trump proposes offering $100 billion in federal incentives to encourage stat

+See More
JPMorgan Chase CEO Jamie Dimon sees great potential for 10-year government bond yields to rise to 5%.
Olivia London

2018-08-05 12:34:00 Sunday ET

JPMorgan Chase CEO Jamie Dimon sees great potential for 10-year government bond yields to rise to 5%.

JPMorgan Chase CEO Jamie Dimon sees great potential for 10-year government bond yields to rise to 5% in contrast to the current 3% 10-year Treasury bond yie

+See More
Net neutrality rules continue to revolve around the Trump administration's current IT agenda of 5G telecom transformation.
Becky Berkman

2018-05-15 08:40:00 Tuesday ET

Net neutrality rules continue to revolve around the Trump administration's current IT agenda of 5G telecom transformation.

Net neutrality rules continue to revolve around the Trump administration's current IT agenda of 5G telecom transformation. Republican Senate passes the

+See More