Wednesday, April 21, 2010

NYC mayor defends Wall Street before Obama visit

Excerpt: As Congress debates sweeping legislation aimed at guarding against another financial meltdown, Mayor Michael Bloomberg has become Wall Street's spokesman and defender amid a chorus of populist voices.

With President Barack Obama set to visit New York to push for passing financial reform, the billionaire mayor, who got his start on Wall Street in the 1960s and is considered a national expert on financial matters, argues that too much regulation could endanger the economy as much as others say it would protect it.

"The bashing of Wall Street is something that should worry everybody," Bloomberg declared last week.

Top Obama administration adviser Jared Bernstein said Bloomberg has missed a larger point after a string of actions in the financial markets led to one of the gravest economic crises in decades.

"It would be highly irresponsible of us not to take the necessary steps to keep this from happening again," Bernstein said.

Note: It seems to me Jared Bernstein has missed the point. The financial crises would never have occurred if the government had not encouraged banks to give out sub-prime loans, had Fannie and Freddie buy up these worthless loans and then bail out those that did the lending. If those that engaged in the risky loans had been left to fail, the free market would prevent this from happening again.

The proposed legislation does not include correction of the Fannie and Freddie problem. Oh, by the way, the Democrats are still encouraging low interest loans to those unable to pay with the taxpayer picking up the tab.

In addition, we have the SEC, FTC, Federal Reserve and FHA that were charged with protecting investors and taxpayers and they fell down on the job. Why do we need another agency as provided for in the bill?

This is all about creating Bigger Government and controling every aspect of our lives.
Read article here.

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