Saturday, May 9, 2009

Kudlow On Steve Friedman and TARP Corruption

From Larry Kudlow:

This week on CNBC’s Kudlow Report I repeatedly called for the resignation of New York Fed chairman Steve Friedman over his blatant conflicts of interest with Goldman Sachs. I was not alone. Among others, two banking-industry heavyweights — former FDIC chairman Bill Isaac and former Cleveland Fed head Lee Hoskins — both agreed with my resignation call on Wednesday night’s show. So I was delighted to learn last night, just before going on-air, that Friedman had resigned his position at the New York Fed effective immediately...

A parting thought: This whole Friedman episode looks like yet another unfortunate example in a long line of growing TARP corruption. Make no mistake: TARP is a corrosive, corrupting, and demoralizing influence on our banks and the rest of the economy. It is a symptom of the slippery slope we are sliding into with Team Obama’s big-government, bailout-nation vision and agenda. The Friedman mess is merely symptomatic of this growing problem inside our system.It is time we all opened our eyes to the mess before us. Enough already. We can do much better
.It's great that Larry is calling these on a case by case basis, when he spots them. But, I think he is missing the big picture. Regulation will always attract bad guys and bad actions. The way to end it is to leave the regulation up to the free markets and eliminate monopoly regulation by government, that way there won't be a monopoly power source around which the bad guys can congregate.

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