Peter Blane


Ben, Shut Up

Posted in 1 by wusspett on October 23, 2009

Ben Bernanke is in front of congress opening his mouth again.  His perogative is still to have “regulation reform” for the “financial system”.  Let’s go with the main points:

  • Congress to have a way to “wind down” to-big-to-fail companies paid through an assessment on the financial industry, not by taxpayers
  • The Obama Administration proposed expanding the power of the Fed.
  • Bernanke wants more protection for consumers to help nurture this “budding recovery”.

First of all, since when is GDP a flower?

Anyway, I think there is merit to what Ben is saying.  We need to not be idiots and follow the rules that are already in place.  Where I disagree is the amount of new rules he and the government are proposing.  Would we be in this severe situation if AIG hadn’t insured highly risky derivatives?  Probably not would be my guess.  Just don’t put all your eggs in one basket!  Done. You don’t need more rules.  If the SEC is doing their job – which they don’t do a lot (Madoff) – and the Fed is doing their job – enacting monetary policy (not proposing new legislation) – and the government is doing its job (do you really need an example?) then the rest will fall into place.

But, since no one wants to do their job and no one wants to own up to anything or pay for the consequences, we (the U.S. Citizens) are stuck hearing reports about new policies that will “protect” us from making bad decisions.  Yes, they want to make sure we don’t make bad decisions.  I mean, who else would these rules apply to?  The banks have OUR money.  The banks are run by US.  These proposed laws will effect YOU and ME.  What should be happening is the SEC and Fed and the Government get new rules imposed by US to regulate THEM.  I think that would nurture this budding recovery.

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