Wednesday, October 15, 2008

Oh dear...

It should be little wonder that they are called tax and spend liberals:
Democratic leaders on Capitol Hill are drawing up plans to toughen oversight of the financial industry and considering introducing another economic-stimulus package in the wake of the government's decision to buy stakes in major U.S. banks.
House Speaker Nancy Pelosi is mulling recommendations from several economists that Congress act on an economic-recovery package that would cost taxpayers $300 billion, according to congressional aides, equivalent to about 2% of the country's gross domestic product.
You know, Japan tried this during the 1990s. They paved over half the country and ended up right back where they started, except with more debt (topping 100% of GDP during the 1990s. The US is currently at around 60% I believe).

Then there is this gem:
The lawmakers are also looking to tighten regulation of financial services, with hedge funds, private-equity funds and exotic financial instruments such as credit-default swaps likely to come under greater federal scrutiny.
Relatively lightly-regulated hedge funds seem to have escaped from the current financial crisis relatively unscathed. Funny that. I guess I have to say it again: deregulation is not the problem. Indeed, the evidence only seems to be mounting.

No comments: