Friday, July 2, 2010

New financial regulation bill a farce

Subject: txt hots mny crpt - libs - bdd econ -
The big banks will be able to operate pretty much as before, free to take us into another financial meltdown

The financial reform that is about to be passed is a farce. Like so much in Washington, it is strictly for the tourists. The following article from Sox First provides commentary on the legislation: [snip]

It is another of these 2,000 page monstrosities with God-knows what buried in the detail. Another bill that no one has read or understands. Another bill with special interest provisions tucked in the fine print. Probably another bill, like healthcare, that has internal inconsistencies that will require on-going interpretations and modifications to make it even workable.

An economy cannot prosper when capital is allocated politically. Capital is scarce and must be allowed to flow to the highest and best economic uses. Instead, we will be moving more toward central planning. Washington rather than markets will be allocating more of the available capital. Your standard of living is going to decrease unless you are politically connected. Capital will flow to the Al Gore-type hucksters instead of the Bill Gates-type innovators.

Just another big step on the Road to Ruin.

[Did we really expect the people who caused the problem to 'fix' it?]



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