The Government’s Intended New Financial Rules

The Government’s Intended New Financial Rules

The Government’s new rules intend to give regulators unlimited powers to do what corporate experts themselves have always found difficult. Let alone political-oriented bureaucrats to attempt to undertake.

A Treasury committee would determine which financial entities pose systemic risk to our economic system. These companies would then be subjected to added regulation by the Federal Reserve.

This cannot be easily done in the real world. Determining potential systemic risk is 100% conjecture. What steps to take, and when to take them, in order to eliminate systemic risk is not a practical matter.

Few real experts in the business world have the foresight to make the decisions. Rarely do bureaucrats or politicos at the Fed or Treasury have the ability or objectivity.

Besides: The Fed and the Treasury already have done a rotten job with the financial meltdown and their bailout functions up to now. Why expect better of them in the future?