Comments on: At the Heart of the Problem is the Task of Fixing the Financial Architecture http://www.citizeneconomists.com/blogs/2009/03/20/at-the-heart-of-the-problem-is-the-task-of-fixing-the-financial-architecture/ Citizen Economists is an online economics magazine written by citizen journalists. These ordinary citizens provide reports and commentary on the current events affecting the economics of the fields they work in. Wed, 08 Feb 2012 04:44:52 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Dan McLaughlin http://www.citizeneconomists.com/blogs/2009/03/20/at-the-heart-of-the-problem-is-the-task-of-fixing-the-financial-architecture/comment-page-1/#comment-7697 Dan McLaughlin Tue, 24 Mar 2009 04:20:02 +0000 http://www.citizeneconomists.com/blogs/?p=961#comment-7697 Sure, let's let the big investent bankers, Paulson, Geithner, et al "regulate" those big, bad investment bankers and rework the architecture to reign them in. All of the key positions in the administration are big bankers. But of course, we all know that they are no longer in it for their buddies in banking. They are really, really on our side now. As Dr. Evil would say, Right! Wink, Wink. The problem with the United States is that it is trying to emulate the failures of central planning in it's older brothers and sisters. Neither Paulson nor any other central planner can solve the problems in good times or bad. They can only distort the economy with every action they take. The banking industry in the United States was never deregulated, it was only reregulated. The regulations were juggled but still serve the big bank interests at the expense of everyone else. The deeper problems in Indian finance have to do with the accident of history that brought socialism there. It has ignored the idea of free markets, just as the United States has for decades. Sure, let’s let the big investent bankers, Paulson, Geithner, et al “regulate” those big, bad investment bankers and rework the architecture to reign them in. All of the key positions in the administration are big bankers. But of course, we all know that they are no longer in it for their buddies in banking. They are really, really on our side now. As Dr. Evil would say, Right! Wink, Wink.

The problem with the United States is that it is trying to emulate the failures of central planning in it’s older brothers and sisters. Neither Paulson nor any other central planner can solve the problems in good times or bad. They can only distort the economy with every action they take.

The banking industry in the United States was never deregulated, it was only reregulated. The regulations were juggled but still serve the big bank interests at the expense of everyone else.

The deeper problems in Indian finance have to do with the accident of history that brought socialism there. It has ignored the idea of free markets, just as the United States has for decades.

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