From Greg Mankiw's blog:
A Great Sentence From David Brooks (New York Times):
The premise of the current financial regulatory reform is that the establishment missed the last bubble and, therefore, more power should be vested in the establishment to foresee and prevent the next one.
2 comments:
I am curious… why do not the current reform proposal mention the Basel Committee? I mean perhaps somewhat unbeknownst to the American people and their legislators in many ways they are really the rule setters.
For instance on April 28, 2004, the SEC seems, for bad or for worse, to have delegated much of its powers into the Basel Committee. http://bit.ly/993jQB
I think it is important to remember that regulation is nothing more than restrictive government intervention. Rather than trying to regulate on my behalf all I ask is be given correct and relevant information. If the government wants to do anything that adds value without negatively impacting the economy and the consumer, just require Financial Companies, and others, to provide complete clarity and visibility to their actions. I think the government would be surprised how well people behave if the secrecy veil is removed from their actions..
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