Rob Tracinski comments on the Dodd-Frank finanacial reform bill.
Tracinski is not in favor of the bailouts or the “stimulus”, but points out that stimulus spending usually has a short-term success before the bubble it creates bursts – a success which isn’t happening. This article is his take on why it isn’t happening.
I’ll tell you what, the stimulus here in Australia isn’t doing much for the shops on the main shopping strip in our suburb of Richmond. So many shops are up for lease. So many businesses are closing down. I’m buying less, and yet my money is disappearing faster than ever. Is Australia making the same kind of errors as the USA? (Eh… I suppose some different kind of errors would suffice to screw up recovery.)
Aside from the above article by Tracinski, I’d also like to recommend a book I’ve recommended before, Thomas Sowell’s The Housing Boom and Bust. If you get the book, be sure it’s the one in the blue cover, not the yellow one. The blue one is the revised edition. It contains all the same information as the original edition, plus extra information that has come to light since the first was written.
If you believe the financial crisis was caused by a too-free market, you need to read Sowell’s book. And if you read it, you’ll see why I’m disgusted by any attempt by Barney Frank and Chris Dodd to pose as saviors of our economy, when they contributed so bloody damned much to the housing bubble that has exploded into such a friggin mess. These two guys either know nothing about how markets work, don’t care to know, and are merely opportunistic politicians, or they’re trying to undermine the economy.
My opinion: they pushed for the expansion of housing loans and bad policies out of political opportunism and economic ignorance, and now they’re trying to deflect attention from their own implication in the boom and bust.