Change Policy, Not Blame

The Obama administration thinks it has found the cure all for its economic woes. The solution: regulate, restrict and play God in the economy. (Not exactly a new strategy for government.) In usual fashion, government regulations and Fed policies bring about unintended consequences, and the blame is pushed elsewhere. With the economy still limping, the surest way to bring about another fall is to throw more obstacles in its way. Punishing banks with regulations, taxations and rhetoric is not the way to restore confidence in the banking system. It will only hamper the recovery.

Perhaps it would be a better solution to reflect on the true causes of the crisis (low interest rates, inflationary policies, Fannie Mae and Freddie Mac, etc) and ways in which to avoid a repeat. However, with the Fed pushing its monetary policy to ever more dangerous limits, it seems the lessons of today were lost on more than just the Presidential administration.

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