Tuesday, March 9, 2010

Bad Financial Reform Worse Than No Financial Reform

I agree with Brad on financial regulation. It's a problem that the majority of Democratic politicians really don't see these economic issues as anything other than political balancing acts: don't piss off Wall Street or taxpayers or union members too much and the rest will work itself out.

This contingent does not understand what went wrong in the first place, because the financial crisis was a direct refutation of their world view. And by all appearances they are sticking to their guns: save the banks, calm everyone down, and the rest will work itself out. Ergo, they are unlikely to do anything to prevent further crises.

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