Friday, March 12, 2010

Bigger Government Is Not the Solution to Big Government Problems

The final details of the financial regulatory reform bill being negotiated by Sens. Chris Dodd (D-CT) and Bob Corker (R-TN) are still being hammered out, but the underlying contours are clear: more government bureaucracy layered on top of our existing impenetrable and unaccountable financial regulatory system. Specifically, the Dodd/Corker plan reportedly still contains these elements:

Permanent TARP

New Consumer Financial Protection Agency

The Agency for Financial Stability

– Sold as purely a monitoring and information gathering entity, without the proper limiting language, a new systemic risk agency could essentially draft any financial firm into the federal financial regulatory system and subject it to a wide variety of restrictions that could include compelling large financial firms to sell off portions of themselves, drop lines of business, break up, or otherwise reduce the “risk” that the regulators believe they may impose on the financial system.

In other words, two huge new governmental agencies that have no clue, that will CONTROL our entire financial system plus a permanent TARP (slush fund) to use to reward those that support big government.
Read The Foundry article here.

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