The fatal flaws of financial reform legislation
The Heritage Foundation reviews the proposed financial reform legislation and finds 14 fatal flaws . An example:
"Does nothing to address problems at Fannie Mae and Freddie Mac.These two government-sponsored housing giants helped fuel the housing bubble. When it popped, taxpayers—because of an implicit guarantee by the U.S. Treasury—found themselves on the hook for some $125 billion in bailout money. Not only has little of this amount been paid back, but the Treasury Department recently eliminated the cap on how much more Fannie and Freddie can receive. Yet the bill does nothing to resolve the problem or reform these government-run enterprises."
We are now into the politics and policy of demonization. Legislators demonize industries and then regulate them.
"Does nothing to address problems at Fannie Mae and Freddie Mac.These two government-sponsored housing giants helped fuel the housing bubble. When it popped, taxpayers—because of an implicit guarantee by the U.S. Treasury—found themselves on the hook for some $125 billion in bailout money. Not only has little of this amount been paid back, but the Treasury Department recently eliminated the cap on how much more Fannie and Freddie can receive. Yet the bill does nothing to resolve the problem or reform these government-run enterprises."
We are now into the politics and policy of demonization. Legislators demonize industries and then regulate them.
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