
 |
|
March 19, 2010
JWisdom.com Stewards of sacrifice
with Rabbi Sroy Levitansky (5 minutes)
Caroline B. Glick: Why Obama is waging war on Israel
March 18, 2010
JWisdom.com Love me not?
with Rabbi David Aaron (5 minutes)
Jonathan Rosenblum: Washington Throws a Tantrum
March 17, 2010
JWisdom.com How to perform a miracle
with Rabbi Yaakov Asher Sinclair (4 minutes)
Anne Bayefsky: Behind Obama's Dangerous Overreaction on Israel
March 15, 2010
JWisdom.com Moody, Grumpy, Irritable Children
with Sarah Chana Radcliffe (5 minutes)
JWisdom.com Manufacturing mediums
with Rabbi Sroy Levitansky (4 minutes)
Glenn Garvin: Conspiracy theories, why people believe them and how they spread
JWisdom.com For Yourself, Not By Yourself
with Rabbi Lawrence Hajioff (8 minutes)
Paul Richter: Biden promises 'viable Palestine' is in the offing
March 10, 2010
JWisdom.com How To Get A (Real) Life
with Rabbi Warren Goldstein ( EXTENDED EPISODE)
Paul Richter: Israel exerts soverign right to its capital as Biden looks on astounded
March 9, 2010
JWisdom.com Free To Be (Responsibly) You and Me!
with Rabbi Naftali Brawer ( 8 MINUTES)
David G. Savage: Supreme Court to rule on free speech in case of soldier's funeral
March 8, 2010
JWisdom.com Finding or Losing Yourself? Here's How!
with Rabbi David Aaron ( 5 MINUTES)
Steven Emerson: America must learn from the UK about the future of Islamist subversion
March 5, 2010
JWisdom.com The Limits of Eternity
with Rabbi Sroy Levitansky ( 4 MINUTES)
March 4, 2010
JWisdom.com Using Things, Loving People
with Rabbi Lawrence Hajioff ( 7 MINUTES)
March 3, 2010
JWisdom.com Grasping The Name of Your Life Game
with Rabbi Warren Goldstein ( 8 MINUTES)
March 2, 2010
March 1, 2010
JWisdom.com Whole in One
with Rabbi David Aaron ( 5 MINUTES)
Michael Muskal: Hillary meets with Israeli official, discusses gefilte fish dispute
Feb. 26, 2010
JWisdom.com A Biblical Secret for a More Powerful You
with Rabbi Sroy Levitansky ( 5 MINUTES)
Feb. 25, 2010
JWisdom.com The Second Most Important Question in Your Life
with Rabbi Yehoshua Karsh ( 5 MINUTES)
Seema Mehta : U.S.-Israel relations raised in California's Senate race --- by conservatives
Feb. 24, 2010
Feb. 23, 2010
JWisdom.com The Last Laugh of Enlightenment
with Rabbi Yaakov Asher Sinclair ( 5 MINUTES)
Feb. 22, 2010
JWisdom.com Esther and the third Truth with Rabbi David Aaron ( 9 MINUTES)
Feb. 19, 2010
JWisdom.com Olympic Faith
with Rabbi Sroy Levitansky ( 5 MINUTES)
Caroline B. Glick: Israel and the West are perpetrators of a myth that endangers the Jewish State
Feb. 18, 2010
JWisdom.com A Wedding Disaster to Remember
with Rabbi Y.Y. Rubinstein ( 3 MINUTES)
Feb. 17, 2010
JWisdom.com Think your life is messed up?
with Rabbi David Aaron ( 11 MINUTES)
Greg Logan: 'Greatest Jewish sporting event of all time since David versus Goliath' may be postponed because of bar mitzvah
Feb. 16, 2010
JWisdom.com Feet On The Street Spirituality
with Gavriel Aryeh Sanders ( 8 MINUTES)
Marty Peretz: Let Europe Mind Its Own Business. It Brings Nothing To The Table Save For Mischief
Feb. 15, 2010
JWisdom.com Are Our Children Really Ours?
with Rabbi Mordechai Becher ( 5 MINUTES)
Susan King: 'Wolf Man' reflected writer's wartime Jewish experience
|
| |
Jewish World Review
June 17, 2009
/ 25 Sivan 5769
A fine madness in the Washington air
By
Tony Blankley
| 
|
|
|
|
http://www.JewishWorldReview.com |
To borrow Niall Ferguson's metaphor, if finance is an
evolutionary process, then regulation is its intelligent design which, I
would add, is a cognate of faith, not science.
Or, to take the observation of former Federal Reserve Governor
Frederic Mishkin, if "the financial system (is) the brain of the economy,"
then, I would suggest, heavy regulation is its lobotomy; while it removes
the emotional highs and lows, it also dulls the perception, facility and
adroitness. (Disclosure: In keeping with my long-held public view, I give
professional advice to financial institutions seeking low regulation and
taxation.)
A century ago, medical science had faith in lobotomies. Today,
it seems, Washington political science has faith in new financial
regulation.
Medical science began to gain wisdom when it learned what
previously unrealized damage it caused when it lobotomized human brains. We
must hope that the "experts" today who are drafting new regulations by which
they would impair our financial system gain wisdom soon by recognizing how
little they understand the effects of these new regulations on our economy's
future health.
However, the current financial regulatory efforts in Washington
may not even deserve the honor of being compared to intelligent design or a
lobotomy. At least with those two processes, each has the intellectual
dignity of an internal logic even if that logic does not accurately
describe the reality it attempts to explain and manipulate.
Rather, the current likely financial regulatory efforts have an
almost random nature to them, as the legislative logrolling is collecting
unrelated and sometimes-inconsistent ideas that eventually will be called, I
assume, the Frank/Dodd Comprehensive and Rationalized National Financial
Redemption Act of 2009.
The final bill will be the compilation of the results of various
political battles being fought among the president, his various White House
economic and political advisers, the Treasury and various powerful committee
and subcommittee chairmen in the House versus their equivalents in the
Senate, as well as the successful interventions of various interests, the
institutional partial victories that are gained in the battles among the
half-dozen or so overlapping financial regulatory agencies in existence,
plus whatever the whimsical effects are of the backbenchers, the states, the
commentators, the media and, of course, the public.
Even if 10 of the smartest financial regulation experts in the
world got in a room and wrote an internally consistent set of regulations,
if history is any guide, it would not be likely to anticipate, avoid or
mitigate whatever the next financial crisis would be. As Ferguson wrote in
"The Ascent of Money," "It seems that, for all our ingenuity, we are doomed
to be 'fooled by randomness' and surprised by 'black swans.'" (See and
read two of Nassim Nicholas Taleb's intriguing books, "Fooled by
Randomness: The Hidden Role of Chance in Life and in the Markets" and "The
Black Swan: The Impact of the Highly Improbable.")
According to a study of financial data of the past two
centuries, there is a 3.6 percent per annum probability of a financial
disaster and, statistically, a 100 percent probability of a new financial
disaster within 33 years.
Treasury Secretary Timothy Geithner who is the lead
executive-branch figure designing new regulations to protect us from the
kind of systemic risk of failures by large institutions that we have just
experienced and are trying to work our way through inadvertently captured
perfectly the madness of the current Washington moment.
Geithner was quoted in last Wednesday's Financial Times: "I
think this has been a searing experience for financial institutions across
the world. The great risk we're going to live with for a very long time is
that risk aversion remains very high."
I happen to agree with him and made a similar observation in a
column last month. But I wonder when it will dawn on the secretary that he
is leading the team designing a regulatory system to protect us from
"greedy" and impetus-excessive financial risk takers destroying the world
economy, when, as he himself pointed out, the real next risk is probably
"risk-averse" bankers failing to make even sufficient prudent loans and
investments.
In other words, he is designing regulations that will force more
prudence and even slower and less circulation of needed money on a system
that he believes is already predisposed to be too prudent and too slow and
will circulate too little money to keep our economy humming.
Realists like to point out that most generals think they are
fighting the last war and thus lose the one they are in. So today,
Washington is busy preparing to protect our future economy which is
likely to be stagnant, risk-averse and weighted down with excessive debt,
high taxes, expensive energy and industrial policy crony capitalism
inefficiencies from yesterday's financial impetuosity and excessive risk
taking. Thereby, we will increase the stagnation, risk aversion and
middle-class poverty such habits will cause. Washington isn't writing a
financial regulation; it is weaving an economic shroud.
Every weekday JewishWorldReview.com publishes what many in the media and Washington consider "must-reading". Sign up for the daily JWR update. It's free. Just click here.
Archives
Tony Blankley is executive vice president of Edelman public relations in Washington. Comment by clicking here.
© 2009, Creators Syndicate
|
|

Arnold Ahlert
Mitch Albom
Michael Barone
Dave Barry
Tony Blankley
Andy Borowitz
David Broder
Stratfor Briefing
Mona Charen
Linda Chavez
Ann Coulter
Greg Crosby
Larry Elder
Suzanne Fields
John Fund
Frank J. Gaffney
Lloyd Garver
Jonah Goldberg
Julia Gorin
Jonathan Gurwitz
Paul Greenberg
Lewis Grossberger
Victor Davis Hanson
Froma Harrop
Betsy Hart
Nat Hentoff
David Horowitz
Laura Ingraham
Cheri Jacobus Jeff Jacoby
Paul Johnson
Jack Kelly
Ed Koch
Ch. Krauthammer
Michael Ledeen
John Leo
David Limbaugh
Kathryn Lopez
Rich Lowry
Michelle Malkin
Jackie Mason
Dick Morris
Bill O'Reilly
Jim Mullen
Clarence Page
Kathleen Parker
Dennis Prager
Wesley Pruden
Tom Purcell
Jonathan Rauch
Celia Rivenbark
Robert Robb
Cokie & Steve Roberts
Pat Sajak
Debra J. Saunders
Culture Shlock
Roger Simon
Michael Smerconish
Thomas Sowell
Mark Steyn
John Stossel
Cal Thomas
Bob Tyrrell
Diana West
Dave Weinbaum
George Will
Walter Williams
Byron York
Mort Zuckerman

Robert Arial
Chuck Asay
Baloo
Chip Bok
Dry Bones
Lisa Benson
John Branch
Gary Brookins
John Cole
J. D. Crowe
John Deering
Brian Duffy
Everything's Relative
Mallard Fillmore
Jake Fuller
Bob Gorrel
Joe Heller
David Hitch
Jerry Holber
Steve Kelley
Jeff Koterba
Dick Locher
Chan Lowe
Ranan R. Lurie
Jimmy Margulies
Rick McKee
Michael Ramirez
Kevin Siers
Jeff Stahler
Ed Stein
Danna Summers
John Trever
Gary Varvel
Kirk Walters

How 2
Lori Borgman
Elder matters
Fixit
Dr. Peter Gott
GET A JOB! by Marty Nemko
Richard Lederer
Tech Maven
Every Monday Matters
Nutrition Myths
Bookmark These
Bruce Williams
How Stuff Works
|