Like many folks, I’ve felt sick watching the stock market tumble in the wake of more government intervention disguised as financial “reform.” In this piece, American Enterprise Institute Senior Fellow Kevin Hassett explains the folly of Sen. Dodd’s “reform.” Bottom line: if you think things are bad now, just wait. (emphasis is mine)
The result is legislation that increases the likelihood of another housing bubble–only ext time, we won’t be able to say that borrowers were tricked into accepting something too good to be true. The bill leaves Fannie and Freddie standing, without addressing the fact that they are still subsidizing loans to those who can’t repay the principal. The inevitable outcome will be a replay of the entire real estate fiasco.
Congressional leaders have no idea what caused the financial crisis, but that has not stopped them from crafting a massive new set of intrusive rules. The only sure thing is that the cost of doing business in the U.S. just increased enormously, as did the odds of a double-dip recession.America has become the land of high taxes, big government, complex regulations and indignant politicians. The future of such a place is not bright. The markets understand that.
