As-of-yet unnamed HFSC Chairman wants to repeal Dodd-Frank

My full post can be found over at Fragmatic Idealism. Here’s the gist and some choice excerpts:

Incoming Republican representatives want to gut the Dodd-Frank financial reform bill and recreate the conditions which precipitated the Great Recession.

If the midterms were truly about the economy, then shouldn’t the candidates’ positions on financial reform have been at the forefront? Reducing government bloat is a worthy goal, but it is not a panacea for the deep, deep problems we face. The truth of the matter is, the pre-Dodd-Frank model of finance capitalism was unsustainable and was inevitably going to bite the hand that fed it and poison the body (i.e., fall apart and precipitate a sustained global recession).

If we don’t face up the reality that this is a logical consequence of our current uproar about small government, then we are doomed to get fucked again (and again, and again, and again …)

To be sure, these is a lesson to be learned from the Great Recession. Some have “learned” that the only answer to our problems is more government since it’s public and therefore the best safeguard against the wolves on Wall Street. Others have “learned” that small government is the best way to go because bureaucracy just gets in the way of growth, and that’s why we’re still struggling to recover. Both of these are wrong. The real lesson to be extracted from the rubble of our economic meltdown is that static ideologies are no longer applicable to globalized world.

What’s ironic about the sabotage of Dodd-Frank is that, if it works, it really will be because congressional Republicans followed through on their promise to you, and you’ll have no one to blame but yourselves. Surely they’ll cut government, and you’ll have nobody there to protect you when the next crisis inevitably rolls around.

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  1. November 17th, 2010
    Trackback from : The Nerd Deal

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