The Political Bear

Published by bear

Running away from the collapsing economy like a bunch of cockroaches the federal government is in a race to the bottom. Of course the collapsing economy is a story that has dominated the headlines for the past several months, but recent plans to help “save” the economy have really gotten under my skin. At that, the plans might actually have long term benefits, but I doubt that.

It would give the Federal Reserve more power to protect the stability of the entire financial system while merging day-to-day bank supervision into one agency, down from five at present.

It also would create one super agency in charge of business conduct and consumer protection, performing many of the functions of the current Securities and Exchange Commission.

It would propose eliminating the Office of Thrift Supervision and the Commodity Futures Trading Commission, merging their functions into other agencies.

It would ask Congress to establish a federal Mortgage Origination Commission to set recommended minimum licensing standards for mortgage brokers, many of whom now operate outside of federal regulation, and it would also take a first step toward federal regulation of the insurance industry by asking Congress to establish an Office of Insurance Oversight inside the Treasury Department.

Current policy ideas all seem to involve giving the Fed more control over the economy. What????? Politicians never give up power. In the past many months have been wasted on Capitol Hill in the name of preserving power. The only reason for the panic, nobody is willing to step up and take the economy by the reigns and claim it. In this ownership society people need to claim responsibility for their actions.

Republicans are at fault for not paying attention, Democrats are at fault for forcing government lenders to provide loans to people who couldn’t afford them. Mortgage brokers are at fault for providing mortgages to people that they knew would bankrupt them if the market went south. Banks are at fault for buying the mortgages, and home buyers are fault for not taking the personal responsibility to insure that they would be able to pay for it if the market went south.

All of this is to say: We know what is wrong with the economy, and it is all by choice not by government action. Giving power to the Fed is a cop out, creating more bureaucracy is inefficient and wasteful, and taking time on issue that shouldn’t involve government is a waste of my taxpayer money.

Mar 31, 2008
Filed under: analysis, Bad Policy, Chairman Bernanke, Federal Reserve, Give Power to the Fed, political