Credit Markets Shutting Down Because of Obama’s Financial “Reforms”

Some credit markets are already shutting down because of the new liabilities imposed by the legislation.

The new law will make ratings firms liable for the quality of their ratings decisions, effective immediately. The companies say that, until they get a better understanding of their legal exposure, they are refusing to let bond issuers use their ratings.

That is important because some bonds, notably those that are made up of consumer loans, are required by law to include ratings in their official documentation. That means new bond sales in the $1.4 trillion market for mortgages, autos, student loans and credit cards could effectively shut down.

I thought this administration has been whining that the economic recovery is being hampered by a lack of access to credit?

Or, is it their strategy to place so many burdens on the lending industry that Government will have to step in, because it’s impossible for anyone to get credit?

Obama's Economic Team works on Phase 1 of the Recovery Plan.

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