The Senate just passed The Economic Growth, Regulatory Relief, and Consumer Protection Act, which, for all intents and purposes, is a bank deregulation bill.
Of course, this comes on the heels of the U.S. House of Representatives' Systemic Risk Designation Improvement Act, a like-minded bill passed on Dec. 19, 2017.
Next, as we all remember from high school civics, the two chambers will reconcile their versions and deliver legislation to the president for signing, which he will almost certainly do, with great relish.
It's no surprise that Congress is pushing bank deregulation. After all, it's a midterm election year, and both parties want bank and financial services money directed their way.
The Senate's 67-31 vote, with 16 Democrats siding with the Republican majority, proves it's a bipartisan push, despite some compulsory, loud Democratic opposition.
Nor will it come as any surprise that after blowing huge holes in the post-crisis-era Dodd-Frank wall that protects consumers, the economy, and taxpayers from bad bank behavior, more rules and regulations will be whittled away soon.
That's going to be great for big banks and big financial services companies… for a while.
It's not hard to envision them coming up with new and interesting ways – and some old "classic" ways – to leverage up their balance sheets in pursuit of profits and blow themselves up again.
OUTRAGEOUS: There's nothing better than banking a 1,156% gain in 14 days on one leg of a play… except making another 1,138% gain on the second half immediately after. Click here to see how it happened.
Look, I'm all for growth. I'm all for capitalism. But I'm not for putting the entire economy at hazard… all over again.
That's what's wrong with what Congress is doing. I can show them what they should be doing to fix this problem once and for all.
And I can show you how to make some extra cash on the upcoming "bubble-and-bust" this is going to create…
About the Author
Shah Gilani is Chief Financial Strategist for Money Map Press and boasts a financial pedigree unlike any other. He ran his first hedge fund in 1982 from his seat on the floor of the Chicago Board Options Exchange. When options on the Standard & Poor's 100 began trading on March 11, 1983, Shah worked in "the pit" as a market maker. The work he did laid the foundation for what would later become the Volatility Index (VIX) - to this day one of the most widely used indicators worldwide. After leaving Chicago to run the futures and options division of the British banking giant Lloyd's TSB, Shah moved up to Roosevelt & Cross Inc., an old-line New York boutique firm. There he originated and ran a packaged fixed-income trading desk and established that company's "listed" and OTC trading desks. Shah founded a second hedge fund in 1999, which he ran until 2003. Shah's vast network of contacts includes the biggest players on Wall Street and in international finance. These contacts give him the real story - when others only get what the investment banks want them to see. On top of the free newsletter, as editor of The 10X Trader, Money Map Report and Straight Line Profits, Shah presents his legion of subscribers with the chance to earn ten times their money on trade after trade using a little-known strategy. Shah is a frequent guest on CNBC, Forbes, and MarketWatch, and you can catch him every week on FOX Business' "Varney & Co."