I am not surprised that the government would fail to see that it was their regulations that caused the financial crisis and seek to pass further regulations to control “big banks.” While banks undoubtedly made bad decisions, the root causes can be found, as this article states, in government regulations and the incentives they provided.
In flipping through the channels I came across an interesting program on CSPAN-2 about the Securities & Exchange Commission Agenda.
The thing that caught my attention on this program was something the main speaker, Dan Gallagher of the SEC, said that to me seemed quite sensible, and illustrates one of the many side-effects of the Federal Reserve’s policy of keeping interests rates artificially low:
I think a focus on fixed income especially in a 0 percent interest rate environment. Right,