Liberals argue that super financial regulation, such as Dodd-Frank, is the answer to stopping bubbles and financial risk. More regulation, they say, will reduce financial meltdowns. That same financial risk that past regulation failed to catch.
And if large companies “too big to fail” look ready to do so, the U. S. ought to be the employer of last resort, to bail such companies out. While government, in effect, operates them. In the past, the bankruptcy laws remedied the problem without political input.
Well, that is corporate statism, pure and simple. And it leads to political favors and crony capitalism.
Not just with banks, but automobiles, energy companies, and so on. That has now become a permanent fixture of our government.
There were alternatives.. Actions that would have been better solutions and less destructive to our long-term economy. ( See the Earl J Weinreb NewsHole® comments.)
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