There is no reason to over-regulate banks IF you allow them to fail. That is IF you allow Capitalism to purify stupidity by destroying the stupid.
The trouble with regulation is the assumption that Gov has to protect investors
. They may have a case to protect depositors and that is covered by the FDIC. But to protect business judgment is unthinkable.
The fact that Gov is now running Fannie and Freddie and thus, virtually all real estate
, with terrible business judgment demonstrates the track record of Gov to be even more irresponsible than the most irresponsible banker.
Once Gov gets involved with individual safety, there is no cognizable limit to the regulation and entanglements it causes. In fact, it destroys every freedom. You can't simply fly somewhere tomorrow; you have to go through a virtual rectal inspection. You are herded like animals at the whim of Gov. And nothing they have done even remotely suggest that your safety has improved. But what we do know is that your freedoms have eroded.
I have no issue with a bank investing
in anything if they alone take the risk. But I have a huge problem with the Federal Reserve being the money laundering operation that supplies speculative funds to these banks at the expense of tax payers.
So while some of you remember with fondness the straight jacket known as Glass-Steagall. All it did was making the underwriting of corporate bonds more difficult. It separated commercial and investment
banking. It made banking more costly and less competitive. It's just bureaucracy and it was child-like in its assumptions. So that's why we hear young liberals clamoring for G-S but they don't know a single provision of the bill or how it was enacted. It is a liberal socialist mind that thinks the world needs to be made into a safe place void of risk and always a winning venture for everyone.
Glass-Steagall was really a bill that enhanced the power of the FED and put in regulatory reserve requirements for fractional reserve allotments.
Somehow it doesn't surprise me... anytime someone loses a lot of money they parade out this idiocy.
I allege that Capitalism works just fine without Government. You need Courts to settle contract disputes. A business that is reckless will soon be fertilizer.
If the government weren't in every businesses pocket, then we wouldn't have all this insane regulation. In an effort to collect tax, government has encroached on the natural rights of productive beings and sets up a system of legalized theft. So this is how Gov enters your life as State Police Power. In Obama's case he thinks all money belongs to the Fed Gov and they decide what to give you, what risk to take etc. This is insanity.
In the long run, this form of government intervention will collapse all institutions into a sea of uncompetitiveness. This is where we are today as Asia is exploding with growth and we are hobbling along with Ben Nackie continuing to prime the pump so we don't blackflop into an economic collapse brought on by the massive weight of gov. oppressing the private sector.
I think you liberals over react too much. Maybe you ought to lay off the coffee for awhile. Nobody functions better in chains and shackles. But that is exactly what kind of gov we have and it is palpable oppression that is slowing down progress.
Try to do anything with a piece of property you own. Try to replace a window frame and you are up to your eyeballs in thees low life local gov. types with inspectors and all grades of morons in your pocket and in your business. I suppose if you grew up in Socialist America you wouldn't know any better. But one thing is certain, the answer to too much gov. is not more gov. And the answer to Obama burnout is not more obama.
