Donald Hank
Regulation vs taxpayer subsidies
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By 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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Donald Hank

Until July of 2009, Don Hank was operating a technical translation agency out of his home in Wrightsville, PA. He is now retired and residing in Panama with his wife and daughter.

A former language teacher, he holds an undergraduate degree in French and German from Millersville State University (PA), a Master's degree in Russian language and literature from Kutztown State College (also in PA), has studied Chinese for 3 years in Taiwan at the Mandarin Training Center, and is self-taught in other languages, having logged a total of 8 years abroad in total immersion situations.

He is also the founder of Lancaster-York Non-Custodial Parents, a volunteer organization that provides Christian counseling for non-custodial parents.

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