Regulating Booms and Recessions

Regulating Booms and Recessions

The whole purpose of this Administration’s crusade to regulate the economy more than it already is, amounts to an attempt to smooth out the booms and the severe recessions of the past.

Unfortunately this country has repeatedly been through this recurring cycle over many, many years. Other economies around the world have been through the same.

The bottom line: Over-regulation or overly-strict regulation NEVER works, not for long. The effort always has a short term goal, but it is, nevertheless, used because it’s always a political measure that assuages public unrest.

Conventional regulation in the latest financial meltdown just didn’t help. There was the usual political factor that overrode all supervision that the regulation afforded. Easy money and the subprime crisis were the babies that Congress created, not the lack of supervision.