Friday, July 23, 2010

More 'Details' About the Dodd-Frank Bill

Former Dallas Fed president Bob McTeer writes:
The new financial reform legislation is massive: about 2300 pages, 14 titles, 1400 sections. Yet,much of it is not in final form but is yet to be determined. It calls for 47 studies, 74 reports, 7 new government bodies or departments. We won’t know all the rules and the ultimate impact for years
McTeer, trying to find a bright spot in all this madness, argues that because so much is left open to the discretion of regulators, then maybe the bill won't be so bad, since the regulators will act with common sense rather than follow strict rules written in a bill. Of course, if the regulators put in place to create the rules, are of the Elizabeth Warren variety, who don't understand basic economics, but love to micro-manage, then it will be much worse than can possibly be imagined at present.

Then, of course, there is the problem of industry elite who are likely to capture the regulators.

In short, there is nothing good about this bill from any angle.

1 comment:

  1. Look like the innocent flower of reform, yet beneath we find the serpent of Democratic social agenda, redistribution, and unprecedented expansionary federal control over the private sector. This financial deform, like all parts of Obama's agenda, are a tragic travesty eating away at the American ideals of freedom, opportunity, and individualism. Here's a good satire: