Could Frank Online Gambling Bill Be the Start of Economic Turnaround?

This very informative article by Christopher Nole comes from the website www.usaonlinecasinos.us

Barney Frank promised US residents last month he would introduce a bill this month to repeal the UIGEA, allowing for legalization and regulation of online gambling. Financial observers are wondering if the move to loosen economic restraints and create a major new federal revenue source may be the spark needed to end the market plunge.

Lawrence Martinez, head of the National Economic Advisory Committee, a financial research group, says that drastic measures that make headlines might be needed to restore consumer confidence, and the Frank bill is the type that may bolster public opinion. “Just pumping money into existing institutions hasn’t affected the consciousness of the populace. But bold moves capturing media attention should help, especially those that spur commerce and produce new revenue without raising taxes.”

Martinez thinks the fear of looming tax hikes has many investors nervous, and seeing the government reach elsewhere for revenue may lighten those fears. “Further, this bill would be seen as business-friendly, opening up new opportunities for cash-strapped land casino companies as well as improving European trade relations. Right now, the public is looking for a sign that things have bottomed out.”

While others contest the amounts are insignificant in relation to the bank liquidity problems, Martinez feels the symbolic value of such Congressional moves has import in itself. He asserts that market movement is responding to investor worries, and active legislative measures and thinking outside the box may reassure uncertain markets that positive moves are coming.

President Obama is thought to be likely to support Frank’s proposal, not only for the potential to generate revenue but also to repair wounds in the US relationship with the European Union.

This entry was posted on Wednesday, March 4th, 2009 at 12:43 pm and is filed under Gambling News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.