Tuesday, December 14, 2010

Why Elizabeth Warren Will Botch What She Thinks She Is Going to Fix

From the Falkenblog:

The problem when someone is given authority to regulate something really complicated, where the agents under regulation have vastly more knowledge of the product landscape than they do, is that the regulators know they don't know what they are talking about. For all Warren has studied credit cards and mortgages, I bet she still doesn't know what the expected charge-off rate is on 550-600 FICO credit cards off the top of her head. The participants know this stuff inside and out.

Thus if they create a stupid law making X illegal, all the industry does is create a slight modification and generates the same result, or a different industry takes up the slack with more onerous terms. Worse, like the Carter credit controls (which caused a GDP tailspin in 1980:Q2), it can totally shut down a market, highlighting their ham-handedness...
 I'm sure Warren is happy as a pig in poop creating her new fiefdom with all the status it implies. As the first director, surely several conference rooms, pavilions, if not an entire  building will have her name on them after she leaves....they will busy themselves having meetings, creating task-forces, showing they listen, and maybe some pointless regulations that merely add fixed costs to the business (eg, the Security Exchange Acts of 1934 and 40 are good examples).

Here's the UN Global Climate committe describing their latest meeting

The United Nations Climate Change Conference took place in Cancun, Mexico, from 29 November to 10 December 2010. It encompassed the sixteenth Conference of the Parties (COP) and the sixth Conference of the Parties serving as the Meeting of the Parties to the Kyoto Protocol (CMP), as well as the thirty-third sessions of both the Subsidiary Body for Implementation (SBI) and the Subsidiary Body for Scientific and Technological Advice (SBSTA), and the fifteenth session of the AWG-KP and thirteenth session of the AWG-LCA.
This blurb underneath a picture of them all applauding themselves!

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