That's a difficult question to answer, Jerry. Yes, on the one hand, there probably should be some sort of framework from which these people need to operate. But, on the other hand, if you look at those areas of the economy that took the biggest hit during the financial crisis, the housing and financial sectors, they were probably the most heavily regulated areas in the entire economy. Clearly the regulation at least needs to be smarter.............Here are a couple of suggestions that you and I will probably agree on. a) Totally get rid of the concept of "Too Big to Fail" (we've largely eliminated risk and we really need to bring it back) and b) Maybe break up some of these larger institutions to spread around the risk (a radical concept but one that even conservatives like Stephen Moore and Larry Kudlow have said that needs to be looked at). Decentralize, in other words.
One of the other big problems is that all too often, because of their incestuous ties to the 2 main political parties, these big corporations tend to have a disproportionate amount of sway as to how these regulations are written; Philip Morris actually being strengthened by the Tobacco Bill, Fannie and Freddie not even being mentioned in Dodd-Frank, etc.. The 2 sides really need to reach a compromise and drain the swamp down there, IMO.
Will: Remember, Fannie and Freddie are outright government agencies.
Ones that, IMHO, have no necessary reason to be there at all.
The federal government should not privatize then, as in, leave them intact to turn into separate private corporations. They should be completely dissolved.
They had a major role in causing the "Great Recession". Leaving them about is like having a pair of ticking bombs, ready to cause it again.
5 comments:
Are you suggesting that banks should regulate themselves?
That's a difficult question to answer, Jerry. Yes, on the one hand, there probably should be some sort of framework from which these people need to operate. But, on the other hand, if you look at those areas of the economy that took the biggest hit during the financial crisis, the housing and financial sectors, they were probably the most heavily regulated areas in the entire economy. Clearly the regulation at least needs to be smarter.............Here are a couple of suggestions that you and I will probably agree on. a) Totally get rid of the concept of "Too Big to Fail" (we've largely eliminated risk and we really need to bring it back) and b) Maybe break up some of these larger institutions to spread around the risk (a radical concept but one that even conservatives like Stephen Moore and Larry Kudlow have said that needs to be looked at). Decentralize, in other words.
(b) will eliminate the concept of (a). Not a bad start.
One of the other big problems is that all too often, because of their incestuous ties to the 2 main political parties, these big corporations tend to have a disproportionate amount of sway as to how these regulations are written; Philip Morris actually being strengthened by the Tobacco Bill, Fannie and Freddie not even being mentioned in Dodd-Frank, etc.. The 2 sides really need to reach a compromise and drain the swamp down there, IMO.
Will: Remember, Fannie and Freddie are outright government agencies.
Ones that, IMHO, have no necessary reason to be there at all.
The federal government should not privatize then, as in, leave them intact to turn into separate private corporations. They should be completely dissolved.
They had a major role in causing the "Great Recession". Leaving them about is like having a pair of ticking bombs, ready to cause it again.
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