We shouldn't let the Democrats get away with calling for regulation as a cure for the $700 billion bailout problem. There was plenty of regulation, with Sarbanes Oxley the latest installment. Sarbox has reduced the number of initial public offerings to zero, and driven the merger and acquisition business off shore. Plus it has made the bean counters rich and the rest of us poor. Republicans have tried to regulate Fannie and Freddie since 2003 but Democrats, fearing to loose the gravy train of Fannie and Freddie money, defeated all attempts. Today's $700 billion disaster is the direct result of that Democratic policy.
Used to be, before Obama, that deregulation meant ending government price fixing. Over the years regulation (price fixing) of ground freight rates and air fares was phased out. Deregulation brought mass air service at good prices, and vastly cheaper shipping. Every thing we buy got shipped from somewhere, so lower freight rates benefit us all.
The Obama folks now blame the $700 billion catastrophe on "Republican Deregulation". That happens not to be the truth. The $700 billion was caused by democratic opposition to regulating Fannie and Freddie, not by lowering freight rates and air fares.
2 comments:
No, Sarbox isn't enough. The Bush Admin contraolled the House,Senate and the appointees that ran the Fed, Treasury, SEC and more. They were in command.
They have to take responsibility.
And another Goldman banker, seasoned at age 35, will run the bailout. OMG!
The Bush administration, John McCain, Alan Greenspan, the Wall St Journal, and responsible Republicans all made strong attempts to limit Fannie and Freddie, going back to 2003. The Journal ran editorials for years warning of Fannie and Freddie's liabilities. Unfortunately average Congressmen believe that easy mortgage money is a social good, especially if it comes into their districts. This common, but wrong belief, was aided and abetted by fat bribes (campaign contributions) from Fannie and Freddie. The administration backed reform bills were stalled and defeated. Although the Republicans did control Congress up until 2006, their control was very thin and the lure of the gravy train (cheap mortgages and bribes) was just too strong for Congressmen to resist. Fannie and Freddie created the sub prime bond market 'cause they were willing to buy the stuff in humungous quantities. Eventually even Fannie and Freddie's government backed credit ran out, they couldn't roll their debt over, and the whole thing crashed. We will be lucky to avoid another great depression. I blame Barney Frank and Chris Dodd for pushing the entire country into it.
That "other Goldman banker" at least worked for one of the two brokerage houses smart enough to survive the sub prime crash. Would you prefer someone from Countrywide, Bear Stearns or AIG?
And, even though 35 sounds young to a couple of old fuds like thee and me, I seem to remember being pretty competent back when I was only 35.
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