Banking Collapse Was Caused By Too Much Regulation

[nhboy]

Rand Paul: Banking Collapse Was Caused By Too Much Regulation | TPMDC

"On the Daily Show Monday night, Sen. Rand Paul (R-KY) blamed the government for mucking up capitalism, saying that the banking collapse was caused not by too little government regulation of the financial sector, but by too much meddling by the Federal Reserve.

By arbitrarily setting interest rates rather than letting those rates be determined by the free market, the Fed created an unsustainable financial structure, Paul said.

"I don't say that's a failure of capitalism," Paul said. "That's a failure of a central bank getting involved and messing up capitalism."

"We need less of the government manipulating interest rates," he later added. "So it really depends on which way you're gonna go. Did capitalism fail, or did central banking fail?" "

 

[SamSpade]

Duh. Obvious much?

But I wish people wouldn't bother with Stewart. It's not that he isn't a bright man, although from his timid appearance on O'Reilly some time back, it's clear he won't suffer a single conservative point of view, no matter the argument.

But generally, I don't care for comedians masquerading as political pundits, because they behave as though their position as a comedian absolves them of doing any actual research or analysis - they can do things with reckless abandon that even the most biased journalist cannot do. And if they are popular, they actually expect to be taken SERIOUSLY. Try to imagine the most respected political commentator you know habitually doing what they do. I know a few pundits I think might even make a halfway decent President. Franken, he can't even keep from making faces in the Senate chamber.

Maher, Stewart, Franken, Colbert and so forth. They are comedians first, but their shtick is they want people to take them seriously. Franken, so much so he actually took HIMSELF seriously and made it into the Senate, but finding sadly that his Democratic colleagues only respect him for his vote and not at all for his knowledge.

 

[Tilted]

Rand Paul: Banking Collapse Was Caused By Too Much Regulation | TPMDC

"On the Daily Show Monday night, Sen. Rand Paul (R-KY) blamed the government for mucking up capitalism, saying that the banking collapse was caused not by too little government regulation of the financial sector, but by too much meddling by the Federal Reserve.

By arbitrarily setting interest rates rather than letting those rates be determined by the free market, the Fed created an unsustainable financial structure, Paul said.

"I don't say that's a failure of capitalism," Paul said. "That's a failure of a central bank getting involved and messing up capitalism."

"We need less of the government manipulating interest rates," he later added. "So it really depends on which way you're gonna go. Did capitalism fail, or did central banking fail?" "

He's right in general (that the collapse was caused, in large part, by too much regulation and government involvement). He's wrong in specific (that central banking in general failed). And, his last question is incomplete. It should be: Did capitalism fail, did central banking fail, or did socialism (*) fail? The most incisive answer is that the latter did.

Just when (American) socialism was about to meet its deserved fate (i.e. failure) at the hands of capitalism, the government stepped in with bailout nation and saved it. So, it lives to fight on. But, it will eventually succumb. Even the mighty government can not mask its inherent and systemic weaknesses forever, and capitalism is a patient, driven, and - ultimately - omnipotent adversary.


(*) i.e. capitalism weakened by a significant amount of socialist policy which has the effect of making the resulting concoction more like the latter (in its weakness) than the former (in its strength)

 

[Mongo53]

Lets NOT forget Chronny Capitalism.

I'm skeptical of the arguments it was Republican or Bush De-regulation that caused the finicial meltdown. There was 4000 pages of finicial regulations before Bush and there was 4000 pages of finicial regulations after him and before the meltdown.

There were several laws and regulation changes after big dollar lobbying campaigns, pushed more by Democrats than Republicans, that create the loop holes or one or two regulation changes that many experts credit as the leading contributing factors of the meltdown.

Yep, I'm onboard with too much regulation and insulation from the markets with the finicial industry and housing industry lead to a lot of the factors causing the meltdown. I'm also willing to believe some back room deregulation of just one or two here or there, that gave a few a big dollar advantage, in return for big dollar contributions for bad self-serving politicians, also contributed.

Regulation and Law MUST always make for a level playing field in the Markets. Too much Regulation can stiffle the markets and drag down growth and activity. Sure, too little regulation can allow bad actors to hurt others unfairly in the markets (we are a far way from that little of regulation). BUT, the chronny capitalism, where politicians use a few laws and regulations, either add or remove, to slant the playing field for some in the market in return for favors and campaign contributions, wrecks the economy as well. Its NOT Capitalism, its NOT even good regulation, it corruption on both sides destroying the system and dragging it down to the detriment of all.