In wondering why the Administration wants more power to “regulate financial institutions,” Jennifer Rubin offers a rhetorical summary of the Democrats and the financial mess:
This really goes to the heart of the entire critique by Democrats and much of the media â€”Â that our present difficulties are the fault of â€œderegulation.â€ Based on this faulty diagnosis the cure they propose â€” more regulation â€” is, not surprisingly, the wrong one.Â It was a government entity â€” the Fed â€” that left the credit punch bowl at the party too long. It was a government entity â€” Congress â€” that passed fair housing laws compelling lenders to make loans to the credit-unworthy. It was government sponsored entities â€” Freddie Mac and Fannies Mae â€” that went hog wild on sub-prime mortgages. It was Congress again that refused to reel in Freddie and Fannie. And it has been a series of churning, expensive, and laborious machinations by the Fed and Treasury which are causing us to funnel trillions into institutions while micromanaging and ultimately harassing their management.
As she reminds us yet again of the Democrats blaming “deregulation” I decided to check my post where I asked readers who bought that “‘deregulation theory’ of the meltdown to identify the specific legislation [then-President George W.] Bush signed deregulating the financial industry and the specific policies he and his Administration enacted.”