The Future of Banking and Regulation

Tyler Cowen hits one out of the park in this article. Before I get into that, I just want to say how  crazy it is when the left calls George W. Bush “conservative” and say that he has deregulated and this has caused this recession. Moderate Republicans do not give bad names to Republicans, they give bad names to the idea of Capitalism. Here is some from this article which is from The New York Times:

“THERE is a misconception that President Bush’s years in office have been characterized by a hands-off approach to regulation. In large part, this myth stems from the rhetoric of the president and his appointees, who have emphasized the costly burdens that regulation places on business.

But the reality has been very different: continuing heavy regulation, with a growing loss of accountability and effectiveness. That’s dysfunctional governance, not laissez-faire.”

That is what I mentioned before. You can never blame a capitalism for the ills of government.

“In short, there was plenty of regulation — yet much of it made the problem worse. These laws and institutions should have reined in bank risk while encouraging financial transparency, but did not. This deficiency — not a conscientious laissez-faire policy — is where the Bush administration went wrong.”

Then this is where he really hits it out of the park:

“In the meantime, if you hear a call for more regulation, without a clear explanation of why regulation failed in the past, beware. The odds are that we’ll get additional regulation but with even less accountability and even less focus on solving our very real economic problems.”

He says it so well I just do not think I could add anything but that the rest is here.


Published in: on September 16, 2008 at 11:49 pm  Leave a Comment  
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