Monday, June 28, 2010

Finreg Fox Guarding the Henhouse

Let's hope for this: A Chance Financial Regulation Bill Won't Pass?

NRO editorial against the bill:
Limits on leverage, for instance, might have put limits in fact on bank size, reducing the damage they could inflict on the economy if they failed. Changes to the bankruptcy code could have made bank failures more orderly when they occurred. Breaking up the rating agencies’ oligopoly would have encouraged smarter risk assessment on Wall Street. Most important, a new approach to housing policy — starting with a plan for dealing with Fannie and Freddie — would have removed an enormous distortion in the economy that contributed to the crisis.

But the bill that Congress has produced, which President Obama is eager to sign, did not include any of these measures.
P.S. For the success of government regulation, see previous post.

They've Pearl Harbored the American people enough. It's time for our Midway.

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