The Rise and Fall of Hope and Change

The Rise and Fall of Hope and Change

Alexis de Toqueville

The American Republic will endure until the day Congress discovers that it can bribe the public with the public's money.
Alexis de Tocqueville

The United States Capitol Building

The United States Capitol Building

The Constitutional Convention

The Constitutional Convention

The Continental Congress

The Continental Congress

George Washington at Valley Forge

George Washington at Valley Forge

Friday, March 2, 2012

A Dangerous Combination: Financial Innovation & the Suppression of Market Forces

From Economics 21:


by e21
Economics 21
February 27, 2012
Thus far, the regulatory response to the financial crisis threatens a false choice: between (1) thwarted innovation and less external finance available for growing businesses and households; and (2) larger, more consequential financial crises. Policymakers should and can avoid falling into this trap by replacing the Dodd-Frank regulatory thicket, including the Volcker Rule, with simple rules, amendments to the bankruptcy code, and substantial increases in margin requirements and capital levels.

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