Salvador Dali at the Federal Reserve

If you understand that the business cycle is caused by Federal Reserve manipulations of the money supply, then you have to characterize this statement by Federal Reserve Governor Daniel K. Tarullo as one of the most absurd statements ever uttered. He is speaking about the new regulations on financial institutions:

I would characterize my aspiration as follows, that the regulatory and supervisory reforms we undertake will significantly reduce the incidence and severity of financial crises.

To end business cycles, all you need to do is stop manipulating interest rates and the money supply. Monkeying with bank regulation has nothing to do with it.

This is a guy who probably thinks you lose weight by buying a tighter belt. In fact, the shape of the bulge around the waist might be different, but it is still food intake versus calories burned that will result in the ultimate heft of the bulge.