Tuesday, March 24, 2009
Government Intervention, Regulatory Policy, and the Financial Crisis
When you hear the populist pabulum that deregulation was the prime cause of our financial crisis, take a pause and note that it is in a politician’s best interest to regulate industries because it places power and influence in his or her grasp. The opportunity for power coupled with a public outcry to "do something" is too great to resist.
Also, have you noticed that all the banks that have over-leveraged themselves are also the most highly regulated?