• [ network ]
  • goatmatrix.net
  • gvid.tv
  • img.gvid.tv
  • games.gvid.tv
  • apps.gvid.tv
HomeUploadUpload URLHotlinkRandomAbouttheme toggle
Expand

3 Reasons The New Financial Regs Won't Fix Anything

Views:1000
@ReasonVids

The financial reform bill currently working its way toward President Barack Obama's desk for signing is being touted as the biggest overhaul of the banking and investment sectors since the Great Depression.

But the new regs won't be any more effective than the ones they replace in fixing anything or preventing the next major panic for at least three reasons.

  1. New Watchdog, Old Tricks


They create a new watchdog consumer agency designed to protect consumers from their own supposed stupidity. You'll now be facing fewer choices when it comes to getting credit cards, loans, and other basic financial transactions.

  1. Never Too Big To Fail


They replace "Too Big to Fail" with... "Too Big to Fail." One of the reasons why major financial institutions played Russian Roulette with the economy was because they were betting they would get bailed out. Which is precisely what happened. The new rules codify the idea that the government will make sure certain institutions can never fail. And if you think the big boys won't game that system, then you don't understand how well Citigroup, Goldman Sachs, et al have come through the current meltdown.

  1. Housing Bubble Trouble


The financial crisis was set into motion by government policies that encouraged people to buy homes they couldn't afford at prices that were unsustainable. Between desperate attempts to keep people in houses and to keep interest rates below an effective rate of zero, the government continues to pour more money down the same rathole.

Markets work best when the risk and reward incentives are clear cut. When investors know they really can lose it all, they act responsibly with their money. If regulators think they can create a system that cushions us from bad decisions and doesn't encourage bad behavior, it's a delusion we'll all be paying for for a very long time.

  1. New Watchdog, Old Tricks


They create a new watchdog consumer agency designed to protect consumers from their own supposed stupidity. You'll now be facing fewer choices when it comes to getting credit cards, loans, and other basic financial transactions.

  1. Never Too Big To Fail


They replace "Too Big to Fail" with... "Too Big to Fail." One of the reasons why major financial institutions played Russian Roulette with the economy was because they were betting they would get bailed out. Which is precisely what happened. The new rules codify the idea that the government will make sure certain institutions can never fail. And if you think the big boys won't game that system, then you don't understand how well Citigroup, Goldman Sachs, et al have come through the current meltdown.

  1. Housing Bubble Trouble


The financial crisis was set into motion by government policies that encouraged people to buy homes they couldn't afford at prices that were unsustainable. Between desperate attempts to keep people in houses and to keep interest rates below an effective rate of zero, the government continues to pour more money down the same rathole.

Markets work best when the risk and reward incentives are clear cut. When investors know they really can lose it all, they act responsibly with their money. If regulators think they can create a system that cushions us from bad decisions and doesn't encourage bad behavior, it's a delusion we'll all be paying for for a very long time.

Approximately 2 minutes. Produced by Meredith Bragg and Nick Gillespie, who also hosts.

Go to http://reason.tv for reference links and downloadable iPod, HD, and audio versions of this and all our videos, and subscribe to Reason.tv's YouTube channel to receive automatic notification when new material goes live.

reason
,
reason.tv
,
reason magazine
,
reason foundation
,
reason.com
,
reason.org
,
libertarian
,
geithner
,
financial regulations
,
financial
,
obama
    Thumbnail for Adam Bellow on The New Threats to Freedom4:44
    Adam Bellow on The New Threats to Freedom
    ReasonVids
    897 views
    Thumbnail for Matt Gaetz Out, Jussie Smollett Walks Free! | Candace Ep 10854:56
    Matt Gaetz Out, Jussie Smollett Walks Free! | Candace Ep 108
    invidious
    199 views
    Thumbnail for TROLLING My FRIENDS With This BIG CHEESE Gravity Race! | Kosmonaut20:36
    TROLLING My FRIENDS With This BIG CHEESE Gravity Race! | Kosmonaut
    invidious
    320 views
    Thumbnail for ถ่ายทอดสด เรื่องเล่าเช้านี้ วันที่ 20 กันยายน 2567 | เรื่องเล่าเช้านี้2:25:17
    ถ่ายทอดสด เรื่องเล่าเช้านี้ วันที่ 20 กันยายน 2567 | เรื่องเล่าเช้านี้
    invidious
    176 views
    Thumbnail for [정꿀쇼] 이재명 2심 선고, 향후 시나리오는? | 기각 5·각하 2·인용 1 한덕수 탄핵 선고 예상했나?··· 서로 다른 여야의 희망회로 | CBS 김현정의 뉴스쇼1:09:01
    [정꿀쇼] 이재명 2심 선고, 향후 시나리오는? | 기각 5·각하 2·인용 1 한덕수 탄핵 선고 예상했나?··· 서로 다른 여야의 희망회로 | CBS 김현정의 뉴스쇼
    invidious
    199 views
    Thumbnail for Introducing Roll | A new technology that enables rolling everywhere. | Roll2:44
    Introducing Roll | A new technology that enables rolling everywhere. | Roll
    invidious
    918 views
    Thumbnail for My all time favorite 🤩 | Fitgreenmind0:54
    My all time favorite 🤩 | Fitgreenmind
    invidious
    204 views
    Thumbnail for Goku Scares Gohan's Teachers | LokiRoyalty3:21
    Goku Scares Gohan's Teachers | LokiRoyalty
    invidious
    497 views
    Thumbnail for 「山除薇害」志工阿美報到!傅崐萁「園丁」從戰天下延燒幸福水泥?花縣為愛狗樂園迫原民遷徙!盤點徐巧芯爭議與民調?阿美爆紅全因王鴻薇?為女權、總預算挺身!【J4葛瑞絲滑上車EP.10】 | 94要客訴1:27:45
    「山除薇害」志工阿美報到!傅崐萁「園丁」從戰天下延燒幸福水泥?花縣為愛狗樂園迫原民遷徙!盤點徐巧芯爭議與民調?阿美爆紅全因王鴻薇?為女權、總預算挺身!【J4葛瑞絲滑上車EP.10】 | 94要客訴
    invidious
    159 views
    Thumbnail for Let’s make an ADHD-proof herb garden 🪴 #herbgarden #balconygarden #ADHD | Adria and Oatmeal1:00
    Let’s make an ADHD-proof herb garden 🪴 #herbgarden #balconygarden #ADHD | Adria and Oatmeal
    invidious
    199 views
    Thumbnail for EP16: Saptahik Bakaiti | Anurag Kashyap, Kejri Daughter Wedding, MeLords, Bengal | Ajeet Pulkit LIVE2:31:15
    EP16: Saptahik Bakaiti | Anurag Kashyap, Kejri Daughter Wedding, MeLords, Bengal | Ajeet Pulkit LIVE
    invidious
    123 views
    Thumbnail for Clash Royalee Nocturnooo | OneXxgg2:07:06
    Clash Royalee Nocturnooo | OneXxgg
    invidious
    216 views
    Thumbnail for Dead Rising: Bomb Collector - Walkthrough - Part 22 - Let's Play (Gameplay & Commentary) | theRadBrad13:05
    Dead Rising: Bomb Collector - Walkthrough - Part 22 - Let's Play (Gameplay & Commentary) | theRadBrad
    invidious
    376 views
    Thumbnail for Libertarian Party Presidential Candidate Gary Johnson Takes Facebook Questions37:24
    Libertarian Party Presidential Candidate Gary Johnson Takes Facebook Questions
    ReasonVids
    970 views
    Thumbnail for Blood Tests (CellTrend, IncellDX, Amen Clinic, Nucelocapsid) | Veronica Smith19:05
    Blood Tests (CellTrend, IncellDX, Amen Clinic, Nucelocapsid) | Veronica Smith
    invidious
    396 views
    Thumbnail for Should the U.S. Military Intervene in Taiwan? A Soho Forum Debate1:16:59
    Should the U.S. Military Intervene in Taiwan? A Soho Forum Debate
    ReasonVids
    797 views
    Thumbnail for Trigger Warnings, Campus Speech, and the Right to Not Be Offended4:49
    Trigger Warnings, Campus Speech, and the Right to Not Be Offended
    ReasonVids
    1044 views
    Thumbnail for 🔥 Cozy Fireplace 4K (LIVE 24/7). Fireplace with Crackling Fire Sounds. Christmas Fireplace 2024 | FOBOS PLANET1:00
    🔥 Cozy Fireplace 4K (LIVE 24/7). Fireplace with Crackling Fire Sounds. Christmas Fireplace 2024 | FOBOS PLANET
    invidious
    462 views
    Thumbnail for The Spurs walk off with an impressive W in Phoenix! 👏 | #Shorts | NBA0:29
    The Spurs walk off with an impressive W in Phoenix! 👏 | #Shorts | NBA
    invidious
    415 views
    Thumbnail for These Calls Are TOUGH! Losing A Daughter, Pastor Wants his Tithe! Blitz Day #3! | The Basement with Tim Ross3:07:37
    These Calls Are TOUGH! Losing A Daughter, Pastor Wants his Tithe! Blitz Day #3! | The Basement with Tim Ross
    invidious
    183 views
    Thumbnail for Easy DIY Bidet | arvintot5554:04
    Easy DIY Bidet | arvintot555
    invidious
    413 views
    Thumbnail for Take Back Our Future2:45
    Take Back Our Future
    bestofupgoat
    159 views
    Thumbnail for 🔴속보 "미국제품 안 사!" 뿔난 소비자들 '불매' 항의 | '오락가락 관세'에 대공황급 충격 | SBS 실시간 라이브 | SBS 뉴스11:54:56
    🔴속보 "미국제품 안 사!" 뿔난 소비자들 '불매' 항의 | '오락가락 관세'에 대공황급 충격 | SBS 실시간 라이브 | SBS 뉴스
    invidious
    121 views
    Thumbnail for The Finger Family Song | ChuChu TV Nursery Rhymes & Songs For Children | ChuChu TV Nursery Rhymes & Kids Songs5:52
    The Finger Family Song | ChuChu TV Nursery Rhymes & Songs For Children | ChuChu TV Nursery Rhymes & Kids Songs
    kids.topic
    137 views
    Thumbnail for Tianjin explosion video captures fear of eyewitnesses - BBC News1:31
    Tianjin explosion video captures fear of eyewitnesses - BBC News
    invidious
    448 views

points

Permalink
Reply
reason
,
reason.tv
,
reason magazine
,
reason foundation
,
reason.com
,
reason.org
,
libertarian
,
geithner
,
financial regulations
,
financial
,
obama
TOS  •  Add Keywords  •  Donate  •   Analytics  •   DMCA  •   Puzzle