The federal Dodd-Frank Act is considered by many to be the most significant financial legislation in modern history. Its purpose was to create a sound Economic Foundation to grow jobs, protect consumers, rein in Wall Street and big bonuses, end bailouts,and “too big to fail,” as well as prevent another financial crisis. Years without accountability for Wall Street and big banks had ushered in the worst financial crisis since the Great Depression that resulted in the loss of 8 million jobs, failed businesses, a drop in housing prices, and wiped out personal savings.
The Financial Stability Oversight Council (FSOC), the unelected oversight group created by the Dodd-Frank Act to monitor and regulate firms deemed to pose systemic risk to the economy (ie. “too big too fail”), has decided begun to expand its remit beyond what even the law’s authors had imagined.
The banking crisis of 2008 and its attendant deep recession have been hailed by statists the world over as the ultimate demonstration of capitalist greed and a justification for more and more regulation and government control of the economy, particularly the financial sector. Their argument boils down to an accusation that private actors in the marketplace are incapable of dealing with systemic crises and that government is the only agent that can address the market as a whole in order to combat panics and economic shocks. That argument won out in the aftermath of the recession, leading to a raft of new regulations, most notably the voluminous Dodd-Frank Act.
The full bill for Obama’s failed economic policies has yet to arrive. But no such explosion of debt has ever escaped a day of reckoning, and no such monetary surge has ever had a happy ending.
The latest edition of The Heartland Institute’s Author Series featured Hester Peirce of the Mercatus Center at George Mason University. One of the most-knowledgeable scholars in America on finance policy, Hester[…]
President Obama says that income taxes must be raised on the rich because they don’t pay their fair share. The indisputable facts from official government sources say otherwise. The CBO[…]