Financial Reform Going Down the Wrong Reform Track

We've heard a lot from politicians that the current push for increased financial regulation is all about big banks and Wall Street.

That, of course, raises a host of questions, including whether such an effort makes sense or not, whether or not politicians have the knowledge to impose and execute a productive regulatory framework, and of course, what the resulting costs will be, as costs always accompany government regulation. Last week's SBE Council Cybercolumn touched on some of the broad issues, questions and costs related to this effort to expand government's regulatory reach.

But there are, of course, more questions.

For example, why does financial "reform" spurred by the recent credit mess fail to address the core issues that caused the debacle?...

Read the rest of the latest Capital & Credit analysis by chief economist Ray Keating here.