Thursday, June 18, 2009

New Financial Regulation Is Watered Down Gruel

When I hear creativity and banking in the same sentence as is quoted by the President, I start to get the delirium tremens. While we are short on detail, from the framework announced, I would consider this to be the metaphorical equivalent of putting a 5 cent band-aid on a severed carotid artery. The only question is how long can the patient live with a band-aid on a severed artery. Let's ask Julia Child or Dan Akroyd.

This is the kind of intellectually lazy reporting that really gets my ire. The greatest financial reforms since the Great Depression? Is that a joke? Wall Street dismantled the reforms of FDR and these proposed regulations don't even begin to get us anywhere near back to neutral. The new administration appears too worried about consensus rather than ramrodding through the changes necessary to re-regulate our financial sector. Or maybe the politicians are too beholden to the billions and billions of dollars thrown at them by Wall Street. Regardless, it's now apparent the only way we will get true reform is by witnessing even greater crises.
posted by TimingLogic at 8:47 AM