Regulate this

I grow very very very tired of democrats and their symps chattering that “Deregulation is bad, m’kay?” And given that I am awake at one odd in the am and the wife is sleeping, I’ll give some example vitrol.

From 1986 to 1995 the number of US* declined to 1,645 from twice that due to unsound real estate lending.
Sound familiar?
In 1989, the Financial Institutions Reform, Recovery and Enforcement Act of 1989 was passed by the 101st Congress in the aftermath of the S&L Crisis of the late 80s. It’s what put Freddie Mac and Fannie Mae into the position to FAIL as they have these past many years. It established that states had to determine means of licensing and certifying real estate appraisers, which were largely determined by Federal mortgage regulatory agencies – which should be putting the word “credit” into your head about now. Please do tell me if any of this sounds at all familiar?**
It is, in short, another bogus “fix” designed to let all the crooks form nice respectible looking power blocs to better and more effectively pick each others pockets. And it worked, if you define worked as business as usual (literally in this case). I’m telling you we Need To Toss It Now. Not peacemeal (As is already happening) but a wholesale erradication of legislation that is rooted in the idea of “debt as economy”. We need to adopt a new paradigm or we will drown in the endlessly spiraling web of governmental handjobs faster than you can say “Junk Bond King”.

We desperately need a new way of doing things. A new paradigm of business, a new way of thinking about making money. It’s not going to happen, but it’s what’s necessary if we’re not going to perpetuate this sort of thing. And increased regulation isn’t going to do the job. (Government patent monopolies on prescription drugs and the protectionism that results help make prescriptions needlessly expensive. Take that and shove it up your universal health care the next time someone says that regulation does no harm.)
You know, I think the Bonobos have the right idea. But I guess that makes me a pinko, huh?

*defined as federally insured savings & loans in the United States declined from 3,234 to 1,645.[8] This was primarily, but not exclusively, due to unsound real estate lending

** it also allowed thrift acquisition by bank holding companies. But hey don’t worry, the FIRREA also created the Office of Thrift Supervision…whose entire budget is paid by assessments on the institutions it regulates. Now, go look up “reach around.” If you want live video of said reach around go to this page and read the list of larger institutions currently or formerly regulated by the OTS.


~ by Auntie Ranty on February 12, 2009.

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