Repeal Dodd-Frank!

Investors Business Daily ^ | May 6, 2016 | Editorial

[expat_panama]

Financial Meltdown: Thanks to the media, many Americans believe that the financial crisis was a result of banking deregulation. A new study delivers a thorough debunking of that idea.

A group of respected think tanks — the Heritage Foundation, the American Enterprise Institute, the Cato Institute and the Mercatus Center — has issued a 208-page book titled “The Case Against Dodd-Frank: How The ‘Consumer Protection’ Law Endangers Americans.” It’s a devastating indictment of the law.

The book crushes the conventional media and liberal political narrative that deregulation was at the heart of the crisis...

...the crisis “was principally the result of the U.S. government’s housing policies.” Not deregulation.

To fix the damage, the study suggests three reforms:

Close Fannie Mae and Freddie Mac. The “toxic twins” spent hundreds of billions in taxpayer backed dollars to subsidize mortgages for uncreditworthy buyers. That was the real cause of the financial crisis. Stop Fed bailouts. That’s especially true of the bank behemoths deemed “too big too fail.” Kill the Consumer Financial Protection Bureau. A massive new regulator of the entire economy, CFPB has helped choke off credit to average Americans and small businesses.

In large part due to Dodd-Frank, the U.S. economy has fallen from 3% growth before Obama, to a pathetic 2% growth now. The first step to restoring our lost economic mojo is to kill Dodd-Frank once and for all.

[TBP]

The sooner the better!