Too Much Regulation

The Obama administration along with Congress continually call for more regulatory supervision over banks and other financial entities.

There are almost a dozen such regulatory federal agencies right now. Perhaps the problem has been too much regulation that overlaps.

Some thing else is to blame for our problems. From the SEC and Federal Reserve on down the list, what is needed is more transparency, not more regulation.

The biggest villain of the subprime debacle was Fannie Mae and Freddie Mac, which were regulated. But nothing was done about their ongoing excesses except what went on publicly and politically in Congress.

The financial media did not think it was important enough for proper comment, and populist political considerations at the time saw to it that proper remedies were never available.

In short: Liberal politicians who wanted housing for those who could ill-afford them rolled the dice and America lost.

Regulation had little to do with it.