Friday, April 23, 2010

Financial Reform Fallacy

Obama said in his 'pretty speech' (pretty bland) that there must be an end to taxpayer bailouts of big banks, so let's vote for Sen. Dodd's financial reform bill. NPR says they can't find any economist that finds this in the bill. In fact there is a mechanism in the bill that creates automatic bailouts.

Sen. Bernie Sanders, Sen. Kaufman and Sen. Brown all want the big banks broken up. This is the best way to prevent more bank bailouts. With smaller banks and less leverage (big key), there will be fewer ripple effects of any failure which means they will be allowed to fail like they should always be.

I'm already tired of the POTUS saying one thing that sounds great but doing the exact opposite. It's like repealing DADT. Sounds nice read on the teleprompter, but no follow through.

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