Round and about 18 Sept

Tyler Cowen challenges the idea that the finance markets have failed due to lack of regulation. Not a lack of government intervention, too much, done badly.

THERE is a misconception that President Bushs years in office have been characterized by a hands-off approach to regulation. In large part, this myth stems from the rhetoric of the president and his appointees, who have emphasized the costly burdens that regulation places on business.

But the reality has been very different: continuing heavy regulation, with a growing loss of accountability and effectiveness. Thats dysfunctional governance, not laissez-faire.

Check this report on the role of House Democrats in blocking efforts to beef up regulation under the Bush administration.

Aayan Hirsi Ali debates Avi Lewis, (husband of Naomi Klein) on the Islamic fundamentalism, the message of the Koran and Sharia law. Lewis cannot see the difference between theocracy and the situation in the US where fundamentalists of all kinds have to live under the rule of law (however imperfect) and democracy (again, however imperfect). Ali oversold the American dream but that was not the strong point of her case.

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15 years ago

Why post this as a serious piece, Rafe? Why not just admit that it’s been lifted from the freepers?

Cowen doesn’t say that there was “too much” regulation, those are words that have been put in his mouth.

And the Democrats blocked legislation in 2003, when the Republicans controlled the House and the Senate?


15 years ago

Good find Rafe.

We had the following regulatory oversight.

1. Compliance office
2. NY state examiners
3. Fed examiners
4. Internal auditors
5. External auditors
6. Futures body examiners.
7. Whistle blowing telephone number to Fed examiners promising full protection.

Someone mentioned there are 70,000 pages of regulation for US financial firms. I reckon it’s true.