This seems familiar
I was reading this article in the New York Times, and came across a statement with sentiments somewhat similar to my blog post yesterday:
If an activity is important enough to justify a government nationalization to prevent a default, it is important enough to be regulated. The regulators need to know what risks are being taken, and by which institutions, in time to act before a crisis develops.
Ideally, the US needs regulations preventing companies from getting too big to fail, rather than forcing significant amounts of industry to be regulated. But either way, something needs to change so that the US does not have to come to the rescue of corporations that dug their own graves.
If an activity is important enough to justify a government nationalization to prevent a default, it is important enough to be regulated. The regulators need to know what risks are being taken, and by which institutions, in time to act before a crisis develops.
Ideally, the US needs regulations preventing companies from getting too big to fail, rather than forcing significant amounts of industry to be regulated. But either way, something needs to change so that the US does not have to come to the rescue of corporations that dug their own graves.
posted by David at 9/19/2008 08:44:00 AM
2 Comments:
But that has proven nearly impossible to implement, because too many in Congress view the actions leading to this to be "a good thing".
Making tons of bad loans to people who cannot afford it, so that they fail, so that the government can forcibly take money from others to cover it -- that's wealth redistribution taken to the next logical step.
They are just hiding "attack the achievers" in the veil of compassion.
_andy,
I think that's disingenuous because those people with mortgages that are too big for them are still being foreclosed upon, and the bailout money is not going to them, but those who do the foreclosing.
What we're seeing is actually a recipe for wealth redistribution up the income ladder, not down.
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