Posted on 06/16/2009 12:06:57 PM PDT by Lorianne
This current financial crisis had many causes. It had its roots in the global imbalance in saving and consumption, in the widespread use of poorly understood financial instruments, in shortsightedness and excessive leverage at financial institutions. But it was also the product of basic failures in financial supervision and regulation.
Our framework for financial regulation is riddled with gaps, weaknesses and jurisdictional overlaps, and suffers from an outdated conception of financial risk. In recent years, the pace of innovation in the financial sector has outstripped the pace of regulatory modernization, leaving entire markets and market participants largely unregulated.
That is why, this week -- at the president's direction, and after months of consultation with Congress, regulators, business and consumer groups, academics and experts -- the administration will put forward a plan to modernize financial regulation and supervision. The goal is to create a more stable regulatory regime that is flexible and effective; that is able to secure the benefits of financial innovation while guarding the system against its own excess.
In developing its proposals, the administration has focused on five key problems in our existing regulatory regime -- problems that, we believe, played a direct role in producing or magnifying the current crisis.
(Excerpt) Read more at washingtonpost.com ...
These people are clueless when it comes to true moral or economic foundations. I didn't need to even waste my time reading the article to know that they're pushing statist, socialist, ungodly measures. All I had to do was read the headline and look to see who the authors are.
Matthew 7:24-27
24 “Therefore whoever hears these sayings of Mine, and does them, I will liken him to a wise man who built his house on the rock: 25 and the rain descended, the floods came, and the winds blew and beat on that house; and it did not fall, for it was founded on the rock.
26 “But everyone who hears these sayings of Mine, and does not do them, will be like a foolish man who built his house on the sand: 27 and the rain descended, the floods came, and the winds blew and beat on that house; and it fell. And great was its fall.”
B/S. It was caused by corruption, incompetence, greed, graft, self-dealing, conspiracy and collusion between the regulated and the regulators. More of the same will simply beget more of the same.
Now I read it. I had it right in the first place.
Government control from top to bottom in America, complete with their vision of globalist regulatory nirvana.
More dueling headlines?
http://www.businessinsider.com/regulatory-reforms-will-have-to-wait-until-next-year-2009-6
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