Monday, April 5, 2010

Financial regulation, need therefore Part II

The usual suspects, Chris Dodd and Barney Frank, are talking up financial reform, now that Obamacare has been rammed thru.
Not that we don't need something to prevent Wall St from driving the economy over a cliff again.
Too bad the Dodd and Frank bill is welfare for Wall St. The bill contains an elaborate and expensive plan for taxpayers to bail out Wall St the next time they wreck the economy. And as a sweetener for taxpayers, there will be a new "consumer protection agency" to limit some of the customer fleecing going on. With lots of well paying jobs for bureaucrats.
We really need rules to prevent the gambling and speculation that put us into Great Depression 2.0. The purpose of Wall St is to finance economic growth, new factories, new products, construction, inventory, and sales. It is not doing credit default swaps, reselling mortgages, or executing stock trades in milliseconds. We need regulations to crack down on the gambling and speculation that crashed the economy, not plans to bail out the gamblers.

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