Let the Big Banks Fail
Richard Shelby, Alabama's senior United States Senator, was first elected to the Senate in 1986 with an undeniable commitment to Alabama and the simple philosophy that a smaller government can also be a more effective government.
Senator Shelby is Chairman of the Banking, Housing and Urban Affairs Committee and Chairman of the Commerce, Justice, and Science Appropriations Subcommittee. In addition, he is a member of the full Appropriations Committee and the Special Committee on Aging.
Question: What are your objections to the Consumer Financial Protection Agency, and what is your plan to reduce the problem of Too Big To Fail?
Richard Shelby: I will first try to address the consumer financial regulatory body. We’re all consumer. I’m a consumer and everybody in America is a consumer, so fundamentally I’m not opposed to creating a consumer protection division of a Prudential Bank regulator. I think we should, but I am opposed to creating it outside the Prudential regulator because the number one issue with banks and it is a consumer issue, is the safety and soundness of banks. Today we have a lot of banks that are still sick or in trouble and there will be a lot of bank failures in the year 2010, so the first order of business is a sound banking system that one can take your deposits that you can sleep at night with and feel good about that will be able to make you loans and so forth, but at the same time being a consumer I think that they should look at some of the consumer aspects of the banking system and I believe the Prudential regulator, that is the regulator that deals with safety and soundness is the proper one to do that.
Question: How did Treasury’s handling of TARP spark the financial panic?
Richard Shelby: Well I think if you look back at the Troubled Asset Relief Program, TARP I opposed that from the beginning. Financial institutions were not too big to fail, that although they were big we should have let them fail and we would have been better off. It would have been a lot more efficient. It would have not been without pain, but we would be a lot ahead of the game today than we are, so my trouble with Treasury then and the Federal Reserve was the intervention there. I think we could have done better. We could have done it different ways, but only history will tell that and I would contend that nothing is too big to fail.
Question: Are you more or less confident in recent months in administration officials?
Richard Shelby: I think it’s mixed. I think as far as our banking system is concerned the Federal Deposit Insurance Corporation headed by Sheila Bair, I think that the FDIC has been on top of things. They’ve closed down a lot of banks, which they have to do. As a regulator they probably mixed like everybody else. I think the worst regulation by any agency was the Federal Reserve over the bank holding companies. Most of those banks, not all, most of those banks were the troubled banks and the ones that caused the most heartburn.
Question: What did you do as Senate Banking Committee Chair to curtail poor practices that led to the crisis?
Richard Shelby: Well first of all I was the leader in trying to make sure that Fannie and Freddie did not fail and did not cost the taxpayers a lot of money. Mixed up in all the financial crisis was the role that Fannie and Freddie played, also the rating agencies, Moody’s, S&P, Fitch, rating instruments that is securities, investment grade, triple A grade and all this when in reality they weren’t. I was the one that authored the legislation to bring competition and give the FCC, which they have now, more power to deal with the people who rate credit, we call the rating agencies.
Question: What do you expect to happen with Fannie Mae and Freddie Mac?
Richard Shelby: I would hope they would be privatized as soon as possible. Right now in early 2010 Fannie Mae and Freddie Mac are probably the only people that are really buying mortgages to a great extent in the secondary market, so they’re the game in town, but on the other hand when we create a hybrid vehicles like we call them government sponsored enterprises, GSE, we’re waiting for trouble in my judgment and I saw that coming five years before. I was hoping that we could privatize them totally, make sure that they were strong and make them work in the market without any implicit guarantee by the taxpayers. That didn’t work out, so now the taxpayers own, for the most part, Freddie and Fannie. What the debt is going to be at the end of the day we don’t know yet.
Recorded on January 22, 2010
Senator Richard Shelby thinks that the Treasury’s handling of TARP sparked the financial panic.
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The results of this study showed depressive symptoms being highest in adolescence, declining in early adulthood and then climbing back up again into one's early 30s.
- A 2020 Michigan State University study examined the link between teen social networks and the levels of depression later in life.
- This study used data from the National Longitudinal Study of Adolescent to Adult Health, specifically targeting social network data. The results showed depressive symptoms being highest in adolescence and declining in early adulthood, then climbing back up again into one's early 30s.
- There are several ways you can attempt to stay active and socially connected while battling depression, according to experts.
The study suggested that teenagers who have a smaller social circle showed higher rated of depression later on in life.
Credit: asiandelight/Shutterstock<p><a href="https://www.eurekalert.org/pub_releases/2020-09/msu-tsn093020.php" target="_blank" rel="noopener noreferrer">A 2020 Michigan State University study</a> examined the link between teen social networks and the levels of depression later in life. The results of this study suggested teens who have a larger number of friends in adolescent years may be less likely to suffer from depression later in life. These findings were especially prominent in women.</p><p>This study used data from the National Longitudinal Study of Adolescent to Adult Health, specifically targeting social network data. This data asks students to select up to 5 male and 5 female friends and indicate how often they felt depressive symptoms. </p><p>MSU Sociology Assistant Professor Molly Copeland and lead author Christina Kamis (Sociology doctoral candidate at Duke University) published the study in the Journal of Health and Social Behavior in September. </p><p><strong>Female teenagers may struggle more with depression during their teen years but show fewer depressive symptoms later in life.</strong> </p><p>For female adolescents, popularity can lead to increased depression during their teen years. However, this ultimately may lead to lasting benefits of fewer depressive symptoms later in life. "Adolescence (is) a sensitive period of early life when structural facets of social relationships can have lasting mental health consequences," Copeland wrote, adding that "compared to boys, girls face additional risks from how others view their social position in adolescence."</p><p>Throughout this study, men showed no association between popularity and depressive symptoms, however, they did show benefits from naming more friends. As for why this is, Copeland has a theory: perhaps the expectations on young girls (compared to young boys) as well as the roles that lead to popularity can create a kind of stress and strain felt more prominently by girls than boys. </p><p>While this does create more difficult teen years for young girls, the stress and strain may lead to giving these girls a psychological skillset that benefits them later in life, allowing them to deal with stressful situations more easily.</p><p>The study also suggested that teenagers who have a smaller social circle showed higher rates of depression later on in life. </p><p><strong>Results from both men and women followed a U-shaped trajectory of depressive symptoms.</strong></p><p>The results showed depressive symptoms being highest in adolescence and declining in early adulthood, then climbing back up again into one's early 30s. This was particularly more noticeable in women, who showed a steeper decline in symptoms between the ages of 18-26, followed by a more rapid increase in symptoms in their early 30s. </p>
How to stay social while battling depression<img type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yNDQ1MjA3MC9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTYxNDMyNDY1N30.e1ULIJ5QYXh4H1SGUPUTJqYBCnX2XWp6InjPRr-2Bdw/img.jpg?width=1245&coordinates=0%2C22%2C0%2C22&height=700" id="832fd" class="rm-shortcode" data-rm-shortcode-id="b360bb24fb8d6025680bfffb52fd5982" data-rm-shortcode-name="rebelmouse-image" alt="depression support group illustration" />
Attending support groups, planning activities with family or even just a weekly phone call to a friend can help alleviate depression.
Credit: Mascha Tace/Shutterstock<p>Although maintaining relationships can help you cope, it can also be one of the most difficult things to do when you're experiencing depression.</p><p>As Dr. Jennifer L. Payne (an assistant professor/co-director of the Women's Mood Disorders Center at Johns Hopkins Hospital in Baltimore) <a href="https://www.everydayhealth.com/hs/major-depression/staying-socially-active-with-depression/" target="_blank" rel="noopener noreferrer">tells Everyday Health</a>: "One of the common symptoms of depression is social isolation." </p><p>Payne goes on to explain that you can "soak up some energy" by simply being around other people, moving around, and staying active.</p><p><strong>Creating a daily schedule and planning activities ensures action. </strong></p><p>While it may be easy to turn down last-minute plans, it's more difficult to cancel plans you've already committed to with friends and family. While it's important not to overwhelm yourself with a packed schedule, creating a minimal daily schedule that involves seeing friends and family or doing activities that you've previously enjoyed can ensure you stay active and often makes you feel more accomplished at the end of each day. </p><p><strong>Support groups and social networking with people who understand. </strong></p><p>While depression can very easily make you feel isolated and alone, surrounding yourself with others who may be struggling with depression as well can help in multiple ways. You will have peer support from people who relate to how you're feeling plus the added benefit of being around people, which can raise your spirits. </p><p><strong>Keeping a journal (and setting goals) can help you feel accomplished. </strong></p><p>Keep a thought journal and detail certain daily or weekly goals (such as a plan to call a friend on Monday or to visit your local coffee shop for a change of scenery on Thursday). These small, achievable goals not only get you out of the house and/or interacting with others, but they also provide a sense of accomplishment and satisfaction once they are complete. </p><p><strong>Random acts of kindness, such as volunteering, will make you feel good. </strong></p><p><a href="https://bigthink.com/mind-brain/kindness-benefits-james-doty?utm_term=Autofeed&utm_medium=Social&utm_source=Twitter#Echobox=1596517476" target="_self">Being kind is good for your health</a> in many different ways. Doing something nice for others can boost your serotonin levels. Serotonin is a neurotransmitter that is responsible for feelings of satisfaction and well-being. Similar to exercise, kindness, and altruism can also release endorphins, creating a <a href="https://www.quietrev.com/6-science-backed-ways-being-kind-is-good-for-your-health/#:~:text=Kindness%20releases%20feel%2Dgood%20hormones&text=Doing%20nice%20things%20for%20others,as%20a%20%E2%80%9Chelper's%20high.%E2%80%9D" target="_blank" rel="noopener noreferrer">temporary sense of euphoria</a> that can help combat depressive symptoms. </p>
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