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The Failure of the Financial Bill

July 18, 2010

from Baseline Scenario:

The underlying problem is that the bill doesn’t do anything to change the basic balance of power between Wall Street and Washington, which is partly based on the fact that it’s a lot better to be a banker than to be a regulator, and the only reason to be a regulator (if you believe in free-market incentives) is so you can then become a banker. As Bill Gross, king of the bond market and no one’s populist, said to The Wall Street Journal, “Wall Street still owns Washington. Better to have appointed [Former Federal Reserve Chairman Paul] Volcker ‘Dictator-In-Chief’ than to have let the lobbyists dilute what needed to be done.” (Scroll to the bottom and click through the experts in the “Grading the Bill” feature; thanks to Larry Doyle for finding the link.) So we’re left with hope.

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