Obama Remodels The Financial System

From the Washington Post:

The plan seeks to overhaul the nation’s outdated system of financial regulations. Senior officials debated using a bulldozer to clear the way for fundamental reforms but decided instead to build within the shell of the existing system, offering what amounts to an architect’s blueprint for modernizing a creaky old building.

If Obama’s remodel goes like mine does, he’ll be making at least 6 trips to Lowe’s.  I’m doubtful this will do anything besides answer the “Do something” demand of voters.  I hold the basic premise that government action usually causes more problems…and unintended consequences.

For several decades campaign finance laws have been passed and re-written to “get money out of politics”.  Are we better off than in 1950?  Not sure.  Probably not.  The government’s been pushing automakers to build safer cars, but also more fuel efficient cars.  These are usually contraditory – (i.e. lighter, more fuel efficient cards are inherently less safe).  The extra costs have managed to help bankrupt an industry.

Finally, I notice this:  The article says the reforms are “…a sweeping effort to curb the kinds of reckless risk-taking that sparked the economic crisis”

Wasn’t the spark for the current crisis caused by Congress (Rep. Frank and others) putting the legislative gun to the head of banks to loan to people who couldn’t afford the payments and those payments finally coming due and not being paid?  How’d this end up – again – Wall Street’s fault?

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