Donald Hank
Regulation vs taxpayer subsidies
By Donald Hank
In a recent video featuring former finance regulator Bill Black exposing fraud and corruption in major financial institutions, the GOP is seen as sticking to a highly questionable philosophy of non-regulation of finance even in situations where non-regulation leads to implementation of taxpayer-paid bailouts and guarantees for bad banker decisions:
http://fedupusa.org/2011/02/02/former-finance-regulator-bill-black-criminal-charges-must-be-laid/
This video shows that the old Republican habit of defending a regulation-free banking system could soon be an albatross.
The Old Republican theory is that too many regulations on banks will hamstring the free market. In theory, this libertarian approach to finance makes sense. But only in a vacuum or a libertarian (laissez-faire) utopia does it hold true. In the real world, the government is obliged to guarantee deposits of bank customers against bank failure. But when you relax regulations to the point that banks are no longer responsible for their actions, you get the kind of situation that led to Reagan's savings and loan scandals.
Read more at FedUpUSA:
http://fedupusa.org/2011/02/02/guest-post-regulation-vs-taxpayer-subsidies/
© Donald Hank
February 4, 2011
In a recent video featuring former finance regulator Bill Black exposing fraud and corruption in major financial institutions, the GOP is seen as sticking to a highly questionable philosophy of non-regulation of finance even in situations where non-regulation leads to implementation of taxpayer-paid bailouts and guarantees for bad banker decisions:
http://fedupusa.org/2011/02/02/former-finance-regulator-bill-black-criminal-charges-must-be-laid/
This video shows that the old Republican habit of defending a regulation-free banking system could soon be an albatross.
The Old Republican theory is that too many regulations on banks will hamstring the free market. In theory, this libertarian approach to finance makes sense. But only in a vacuum or a libertarian (laissez-faire) utopia does it hold true. In the real world, the government is obliged to guarantee deposits of bank customers against bank failure. But when you relax regulations to the point that banks are no longer responsible for their actions, you get the kind of situation that led to Reagan's savings and loan scandals.
Read more at FedUpUSA:
http://fedupusa.org/2011/02/02/guest-post-regulation-vs-taxpayer-subsidies/
© Donald Hank
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