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By - April 28, 2010

Video: Financial Reforms Too Bad Not To Fail

The Heritage Foundation has made this video to explain how the Democrats’ financial regulatory changes will work. According to the article accompanying the video, the bill “can better be described as a Wall Street Bailout bill” as it has 14 “fatal flaws” that “would actually make another financial crisis or bailout more likely to occur.”

The narrator of the video notes that one of these flaws is trusting “the same group of government regulators that didn’t see the last crisis coming” to protect us from future financial meltdowns. Let’s face it. These regulators don’t exactly have a stellar track record.

Even worse, by establishing a permanent bailout fund and guaranteeing assistance when required, the reforms would actually encourage the very behavior they’re supposed to prevent. Kids learn real quick to not touch a hot stove because God has provided us with a nice little feedback loop. I touch the stove, I let loose a stream of profanity, and I never touch a stove again because it hurts! Things work exactly the same way in a free market economy. I engage in financially risky behavior, my company suffers financial losses, and I never make decisions like that again because it hurts!

What Obama and Reid want to do is remove the possibility of these institutions suffering the consequences of their decisions. When has this approach ever led to responsible decision making? I think you and any seven year old with responsible parents knows the answer to that one.

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Comments (1)

 

  1. Mike Ederer says:

    Doesn’t Dodd own or didn’t he own an investment bank??? I think he did back or sometime around when Iran contra money was laundered through HUD.
    Catherine Austin Fitts knows for sure, she ran HUD and DODD put her investment bank out of business with fraudulent charges 3rd person that were later proved to be falsified.
    Why? C.A.F’s investment bank doing due dilligence for HUD had recommended other investments banks to HUD when Dodd’s banks bid was 3x higher and DODD tried to order her to recommend his bank over the others

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