Jeff Perren at Shaving Leviathan
; He rightly notes that in this
current crisis on Wall Street
, government will always be overly zealous and heavy handed when it comes time to regulate an industry that is currently unpopular or deemed too “greedy.” Politicians will push for regulations not because they are sure that it will help all parties involved but to seem to their constituents that they are “doing something:”
Hundreds of economists from Adam Smith to Thomas Sowell have pointed out the obvious for generations. Beneath all the complex talk of derivatives, leverage, and the like they all say pretty much the same thing: Politicians, get out of the way. Let the market deal with it.