Friday, June 19, 2009

Obama’s financial reforms – an unfortunately accurate appraisal from WSJ…..

“The main idea behind the Obama Administration’s new financial revamp is this: With more power and a modest reshuffling of the bureaucratic furniture, the same regulators who missed the last credit mania will somehow prevent the next one. If nothing else, this concept is certainly true to President Obama’s campaign theme of “hope”.”

One striking  point made is that all of the hand wring and in particular the way the reforms are conceived and presented serves to entirely avoid any light being cast on considering the role of the government – from housing policy , the SEC’s role, the role regulation and the “work” of the Fed – and what might be to blame in that quarter.

Another triumph for rent seeking – the worst of it is the poor guy probably thinks this really will work.

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