What we need is regulation

[underdose]

I lot of people lately are blaming the explosive credit expansion that led up to this meltdown on deregulation. Some people blame W., some say no it was Clinton, some say Carter got the ball rolling. Regardless of who is to blame, the argument is made that we need more regulation. The agrument goes something like this:

Businesses are run by people who are fallible, corrupt, greedy and incompetent. Therefore, they need to be regulated so they do not do something destructive.

Who can we trust to perform this regulation? Why, the government, of course. Only, since governments are also made up of human beings (sort of), I could make the exact same statement but substitute one word:

Governments are run by people who are fallible, corrupt, greedy and incompetent. Therefore, they need to be regulated so they do not do something destructive.

Uh oh! This smells like an infinite regress. Who will regulate the government? Here some might argue that the democratic process regulates the government. But who are the voters? People, once again, and still fallible, corrupt, greedy and incompetent. For the larger public I might add the adjectives largely unsophisticated and ignorant, easily swayed, prone to heard behavior. But let’s not be too judgmental. So who should regulate the larger population? The government? Now we’ve gone full circle, and we’re talking about totalitarianism. I doubt any proponents of regulating businesses want to throw democracy away just yet.

Well, if we aren’t ready to throw away democracy just yet, why are we clammering to throw away democracy? What are free markets but one big democracy? People “vote” for the companies that should succeed with their purchases. Sometimes they “vote” for the wrong companies, like Countrywide, just as sometimes they vote for the wrong candidates, like W. But I would personally rather have the right to vote, rather than have some beaurocrat as central planner dictating what market imbalances should exist.

I will agree that part of the problem was that someone was deregulated. It was the Fed. Alan Greenspan acted with no restraint from anyone, no accountability to anyone, no regulatory agencies overseeing his monetary policy. The credit expansion was his fault more so than the banks. The banks were being regulated by the Fed. The behavior of the banks were completely manipulated by the Fed. The Fed was fallible, corrupt, greedy, and above all, incompetent.

So my question remains, who should be regulating whom?

[no_such_reality]

I have an idea.

Let’s regulate Joe Sixpack.

You see, Joe Sixpack is the problem.

Joe Sixpack borrowed the money.

Joe Sixpack can’t pay it back.

Simple solution, Joe Sixpack doesn’t get to borrow any more…

Oh wait, Joe Sixpack won’t admit he’s the real culprit. Oh no, it’s greedy wall street bankers, not Joe Sixpack. Joe Sixpack just wanted his house to buy him a whole remodel, and a boob job for the wife, and a new SUV, and a big Z71 truck, and boat.

[no_such_reality]

I have an idea.

Let’s regulate Joe Sixpack.

You see, Joe Sixpack is the problem.

Joe Sixpack borrowed the money.

Joe Sixpack can’t pay it back.

Simple solution, Joe Sixpack doesn’t get to borrow any more…

Oh wait, Joe Sixpack won’t admit he’s the real culprit. Oh no, it’s greedy wall street bankers, not Joe Sixpack. Joe Sixpack just wanted his house to buy him a whole remodel, and a boob job for the wife, and a new SUV, and a big Z71 truck, and boat.

[no_such_reality]

I have an idea.

Let’s regulate Joe Sixpack.

You see, Joe Sixpack is the problem.

Joe Sixpack borrowed the money.

Joe Sixpack can’t pay it back.

Simple solution, Joe Sixpack doesn’t get to borrow any more…

Oh wait, Joe Sixpack won’t admit he’s the real culprit. Oh no, it’s greedy wall street bankers, not Joe Sixpack. Joe Sixpack just wanted his house to buy him a whole remodel, and a boob job for the wife, and a new SUV, and a big Z71 truck, and boat.

[no_such_reality]

I have an idea.

Let’s regulate Joe Sixpack.

You see, Joe Sixpack is the problem.

Joe Sixpack borrowed the money.

Joe Sixpack can’t pay it back.

Simple solution, Joe Sixpack doesn’t get to borrow any more…

Oh wait, Joe Sixpack won’t admit he’s the real culprit. Oh no, it’s greedy wall street bankers, not Joe Sixpack. Joe Sixpack just wanted his house to buy him a whole remodel, and a boob job for the wife, and a new SUV, and a big Z71 truck, and boat.

[no_such_reality]

I have an idea.

Let’s regulate Joe Sixpack.

You see, Joe Sixpack is the problem.

Joe Sixpack borrowed the money.

Joe Sixpack can’t pay it back.

Simple solution, Joe Sixpack doesn’t get to borrow any more…

Oh wait, Joe Sixpack won’t admit he’s the real culprit. Oh no, it’s greedy wall street bankers, not Joe Sixpack. Joe Sixpack just wanted his house to buy him a whole remodel, and a boob job for the wife, and a new SUV, and a big Z71 truck, and boat.

[jpinpb]

It’s cyclical as underdose suggested. Joe Sixpack may not want to admit he’s the real culprit, but if the banks were careful in who they loaned the money to, i.e., making sure Joe Sixpack could pay it back, then we wouldn’t be in this mess.

Regardless of how Joe Sixpack squandered his winnings, recklessly pumping money into the economy, he wouldn’t have the money in the first place if the banks checked into the capability and risk-factor of Joe Sixpack.

It ultimately does rest w/the bank. Joe Sixpack wasn’t going to turn down free money if some stupid bank was going to give it to him. Joe Sixpack isn’t the sharpest tool in the shed – or maybe he is.

[jpinpb]

It’s cyclical as underdose suggested. Joe Sixpack may not want to admit he’s the real culprit, but if the banks were careful in who they loaned the money to, i.e., making sure Joe Sixpack could pay it back, then we wouldn’t be in this mess.

Regardless of how Joe Sixpack squandered his winnings, recklessly pumping money into the economy, he wouldn’t have the money in the first place if the banks checked into the capability and risk-factor of Joe Sixpack.

It ultimately does rest w/the bank. Joe Sixpack wasn’t going to turn down free money if some stupid bank was going to give it to him. Joe Sixpack isn’t the sharpest tool in the shed – or maybe he is.

[jpinpb]

It’s cyclical as underdose suggested. Joe Sixpack may not want to admit he’s the real culprit, but if the banks were careful in who they loaned the money to, i.e., making sure Joe Sixpack could pay it back, then we wouldn’t be in this mess.

Regardless of how Joe Sixpack squandered his winnings, recklessly pumping money into the economy, he wouldn’t have the money in the first place if the banks checked into the capability and risk-factor of Joe Sixpack.

It ultimately does rest w/the bank. Joe Sixpack wasn’t going to turn down free money if some stupid bank was going to give it to him. Joe Sixpack isn’t the sharpest tool in the shed – or maybe he is.

[jpinpb]

It’s cyclical as underdose suggested. Joe Sixpack may not want to admit he’s the real culprit, but if the banks were careful in who they loaned the money to, i.e., making sure Joe Sixpack could pay it back, then we wouldn’t be in this mess.

Regardless of how Joe Sixpack squandered his winnings, recklessly pumping money into the economy, he wouldn’t have the money in the first place if the banks checked into the capability and risk-factor of Joe Sixpack.

It ultimately does rest w/the bank. Joe Sixpack wasn’t going to turn down free money if some stupid bank was going to give it to him. Joe Sixpack isn’t the sharpest tool in the shed – or maybe he is.

[jpinpb]

It’s cyclical as underdose suggested. Joe Sixpack may not want to admit he’s the real culprit, but if the banks were careful in who they loaned the money to, i.e., making sure Joe Sixpack could pay it back, then we wouldn’t be in this mess.

Regardless of how Joe Sixpack squandered his winnings, recklessly pumping money into the economy, he wouldn’t have the money in the first place if the banks checked into the capability and risk-factor of Joe Sixpack.

It ultimately does rest w/the bank. Joe Sixpack wasn’t going to turn down free money if some stupid bank was going to give it to him. Joe Sixpack isn’t the sharpest tool in the shed – or maybe he is.

[peterb]

Here’s a little known fact: Look at the amount of investigators the IRS has hired or had as staff for the last 8 years. Kinda says it all. But Obama will probably change that. So we all have to play it a lot safer in the near future.

[peterb]

Here’s a little known fact: Look at the amount of investigators the IRS has hired or had as staff for the last 8 years. Kinda says it all. But Obama will probably change that. So we all have to play it a lot safer in the near future.

[peterb]

Here’s a little known fact: Look at the amount of investigators the IRS has hired or had as staff for the last 8 years. Kinda says it all. But Obama will probably change that. So we all have to play it a lot safer in the near future.

[peterb]

Here’s a little known fact: Look at the amount of investigators the IRS has hired or had as staff for the last 8 years. Kinda says it all. But Obama will probably change that. So we all have to play it a lot safer in the near future.

[Author]

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