The Washington Post asked Ted Weisberg, a 40-year veteran of the trading pits, what caused the 1,000-point earthquake on the Dow. His answer was that Congress had enacted so many new trading regulations in recent years that when an actual trading crisis arose, there was no way to hit the brakes.
"I don't know what their rules are. The public doesn't understand. This is another perfect example of the government changing the ground rules, and we end up with unintended consequences," Weisberg said.
Rather than a plan to simplify financial regulations or even strengthen them, President Obama and Congress have settled on the more common political practice of the shakedown.
Senate Majority Leader Harry Reid talked tough until the big financial houses started to come across with donations to prop up his failing re-election campaign. Reid was then happy to let the industry's best friend in Congress, Sen. Chris Dodd, push through another layer of regulations that will produce another round of unintended consequences.
Read more at the Washington Examiner: http://www.washingtonexaminer.com/politics/Trust-gap-will-haunt-Democrats-in-November-93238804.html#ixzz0nXNNKNN6
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