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Degregulation And Mass Amnesia

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Real Estate Agent with Compass | 1313 14th St NW DC 20005 Licensed in DC & VA

The incoming Trump administration is gearing up to make additional reductions to financial regulations during his second term, putting the CFPB, SEC, FDIC and Federal Reserve on notice that change is coming. Or at least the attempt at change.

Trump's stated mission to drastically reduce the power of U.S. financial regulators would gift Wall Street with a 'deregulatory boost’ after 15 years of heightened oversight and tightened restrictions. Strict regulation that directly resulted from the 2008 subprime mortgage crisis attributed primarily to their actions, if you'll recall.

The financial sector is hoping for elimination of post-market crash safeguards with Trump’s reelection, and probably that Americans will experience mass amnesia related to its past predatory behavior, which didn't land any of them in prison, but wiped out $3.4 trillion from' retirement accounts, cost approx. 15 million Americans their jobs, shuttered 1.8 million small businesses, caused inflated home values to plummet an est. 30% putting many into a negative equity position and setting off a massive wave of foreclosures resulting in a loss of $7 trillion in the real estate industry. They'd like us to forget that the fallout expanded into long-term damage to consumer credit ratings, extended loss of income, $1 trillion in stock portfolio losses, overall weakening of the U.S. economic system and the spreading of our $20 trillion misery to other countries.

They don't want us to see that many of Trump's floated policies--especially if combined--risk taking us right back to the days of Wall Street running amok, racking up the economic tab until taxpayers (and what's left of the FDIC) are again stuck with the life-crushing, economy-crippling bill.

How many of his deregulation efforts will be challenged and blocked, or diluted? How much of his publicly-spouted deregulation plan will he even decide to pursue? Well, its Trump, so who knows? But he has goals...

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Posted by

Susan Isaacs, Realtor

The Isaacs Team LLC

Partnering With DOMO

Compass

1313 14th Street NW DC 20005

Find us at:

realestateinthedistrict.com

Equal Housing Opportunity

Copyright - All rights reserved The Isaacs Team LLC

Comments(6)

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Sham Reddy CRS
Howard Hanna RE Services, Dayton, OH - Dayton, OH
CRS

Thanks for sharing Susan, great information on impending changes in housing financing.

The incoming administration is gearing up to make additional reductions to financial regulations during his second term, putting the CFPB, SEC, FDIC and Federal Reserve on notice that change is coming. Or at least the attempt at change.

Nov 21, 2024 04:29 AM
Kat Palmiotti
eXp Commercial, Referral Divison - Kalispell, MT
Helping your Montana dreams take root

I think it's too early to know what kind of changes will result from our next administration's review of financial agencies. And too early to know what kinds of safeguards will or will not remain in place. We shall see.

Nov 21, 2024 05:05 AM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good morning Susan,

I agree with Kat Palmiotti It's way too early to know what kinds of safeguards will or will not remain in place. We shall see.

Nov 21, 2024 05:29 AM
Susan Isaacs | DC Real Estate Consultant

Once they're gone, they're gone. The 'wait and see' approach got us into the last devastating mess. Forewarned should mean forearmed. Sharing potential issues that could cause widespread economic harm again is the very least we can do. I remember the aftermath of the 2007-2009 market crash. So many consumers were bad-mouthing real estate agents for not warning them, failing to protect them while raking in the commissions. We were seen as complicit. Well here it is. Fair warning.

Nov 21, 2024 06:45 AM
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Hello Susan - we shall see.  And it seems many repeat performances have more than their share of twists and turns.  

Nov 21, 2024 05:47 AM
Bill Salvatore - East Valley
Arizona Elite Properties - Chandler, AZ
Realtor - 602-999-0952 / em: golfArizona@cox.net

One thing for sure the next four years will be interesting, great information. Thanks for sharing it.

Have a super fantastic week!

Bill Salvatore, Realtor- Arizona Elite Properties

 

Nov 21, 2024 05:50 AM
Susan Isaacs | DC Real Estate Consultant

It certainly will! If they could find a way to help ease mortgage rates without raising inflation or kneecapping the economy, that would certainly be.a welcome turn of events.

Nov 21, 2024 01:11 PM
Adam Feinberg
Elegran - Manhattan, NY
NYC Condo, Co-op, and Townhouse Advisor

We are very much on the same page, more than you realize.  I am a former Wall Streeter - turned real estate agent (there are a bunch of us out there). I started my first career out of college working for AIG Trading Group. A few years after I left them, they merged with the now infamous AIG Financial Products. Initially I worked in traditional financial roles, but later evolved as a specialist in Training and Professional Development within Capital Markets covering many different areas of these firms. Post crash I worked in a bunch of different areas- but included was compliance and regulatory departments. I thought a lot of the regulations were poorly thought out and implemented- but it was better solution than not having regulations in place. At one Investment Bank that I was working for we had many different regulators that we needed to report to- Federal, State, Quasi-Governmental, and International. One good example of what I encountered routinely is that the bank had to supply regulators with reporting data,  but it's worth noting that many of the regulators were asking for the same or similar  reporting data sets but would be fined if the data wasn't being reported in the manner being requested. The reality was that the banks were more or less using the same data but needing to customize the reporting specific to each regulator. It wasn't a good use of time/effort for the banks- and if the regulators were talking to one another and the banks- there would be ways to streamline all of these efforts. More importantly- the banks could then focus on visualizing what the real problems and fix them rather than dedicating all these resources to customizing reports for each regulator. There are a lot of other issues to tackle as well.

My position is that we need good look at what's working and what's not and a total reworking of our regulatory framework. I am not a supporter of wholesale deregulating and killing off our agencies as Trump screams about. I would be a supporter if we are looking at making our regulations work better. But killing agencies just for popular opinions- that is irresponsible.

This is the short, short, short version of my background- but yes, I am concerned with the potential for mass amnesia. 

Nov 23, 2024 11:55 AM
Susan Isaacs | DC Real Estate Consultant

Great insights! Thanks, Adam

Nov 24, 2024 10:11 PM