Monday, March 31, 2008

More regulation of the financial/housing market?

Be careful of what you wish for. The "solution" may likely be worse than the problem.

"Many American homeowners are facing financial hardships resulting from onerous mortgages and falling home values. Many investors are facing financial losses as the risky instruments they bought in happier times decline in value. These processes must work through to conclusion for the economy to regain a sound footing, and the private sector is working effectively toward this end.

Congressional action cannot change this reality, except by prolonging and exacerbating the situation. Congress should focus its energies on policies to strengthen the economy coming out of the current slowdown."

Not that the common sense of those words will do anything to stop the onslaught of those beating the drums for bigger, "better" , and more (much more) regulation (think Krugman).......

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