Will Financial Regulatory Legislation Fix What Went Wrong?

On April 28, Republicans in the U.S. Senate agreed to allow debate to move ahead on a financial regulation bill.

The House of Representatives narrowly passed a bill in December by a vote of 223-202, with 27 Democrats joining all Republicans in opposition.

This entire effort is being billed as what's needed to avoid messes that hit the economy in 2008, protect taxpayers, and stabilize financial markets. In his speech in Manhattan on April 22, President Obama declared: "Ultimately, there is no dividing line between Main Street and Wall Street. We will rise or we will fall together as one nation."

In reality, both Main Street and Wall Street have a great deal to worry about regarding this entire effort. Falling together, indeed...

Read the rest of this SBE Council Cybercolumn by chief economist Ray Keating here.