April 2, 2008
The US is in recession territory. Investment banks are on the verge of collapse, the mortgage crisis is spreading, meltdown is happening, unemployment is rising and the Federal Reserve is taking on significant amounts of risk to avert further meltdowns on Wall Street and Main Street. The nation is reeling from the subprime crisis and the response of the Bush administration is more deregulation of financial markets. Treasury Secretary Henry Paulson is thinking about market deregulation and efficiency,whilst everyone else is worried about market survival. We gotta let the markets be markets says Paulson.
Paulson in his speech said, "I do not believe it is fair or accurate to blame our regulatory structure for the current market turmoil." Paulson is saying that the US regulatory structure isn't at fault in the current crisis, even though he still wants to spend a lot of time and resources completely reforming it to allow more de-regulation. That will allow for more risk taking by bank and nonbank financial institutions.
|