Can Dodd-Frank Prevent Financial Bubbles?

The purpose of the administration’s attempt to regulate the economy amounts to a foolhardy attempt to smooth out the effects of booms and severe financial jolts and recessions.

The U. S. has repeatedly been through recurring economic cycles over many years. Other economies around the world have experienced the same.

The bottom line is: Over-regulation or overly-strict regulation never works. The effort always has a short term goal, but, nevertheless, is used because it’s always a political measure to temper public unrest.

Dodd-Frank is excessive regulation that will not help. There is the usual political factor that overrides supervision that the regulation affords. Easy money and the subprime crisis were what Congress and the administration created, not the lack of supervision.

I have commentated on this repeatedly, mentioning how simple bank guarantees and not having “mark-to market” accounting for banks in an emergency, would have been the alternative solution. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole tweets.)