President Barack Obama Message Board

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Politics : President Barack Obama

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To: TigerPaw who wrote (37389)	10/9/2008 11:19:18 PM
From: Little Joe	Read Replies (2) of 149317

On the Regulation issue between the code and the regulations relating to the financial world to use a very broad term, there are thousands of pages of regulations at the Federal Level (I have been trying to track down just how many, but a lot harder than I thought), plus more for each State. So the notion that there was insufficient regulation is really absurd. There were plenty of regulations. The real issue is do they make sense. Do they address the real problems? Apparently they were either not being enforced or not effective. Why do we have all these laws and regulations. I suggest that in the end the people who create them are corrupt or incompetent and I expect a little of both. Tom Peters described this process in one of his books on management and I have personally witnessed it on many occasions. It goes like this. Something goes wrong so the organization be it a corporation or goverment entity develops a rule or regulation to deal with the problem. Since the real source of the problem is likely incomptetence or some other agenda the rule or regulation does not solve the problem and it continues to occur and each time the underlying root problem is never addressed but a new regulation is added to the "book". Eventually the book becomes so big that no one knows what is in the book and nobody looks at it or uses it except to place blame after the fact. That is exactly what they will do here, more regs, more regulators, more lawyers and the real problem is not solved. In the financial area I believe the best approach is to simplify and reduce the number of regulations but to use the concept of fiduciary duty to impose obligations on the industry. Using this technique, we could send thos who violate those duties to jail. For example, a Bank officer could have a statutory duty which is owed to stockholders, depositors and (since they are granted the extraordinary right to print money) and to the people of the country. When a failure such as this occurs his or her activity would be scrutinized and if they violate their duty, they would be subject to fines and prison. Now there is a reason why this doesn't happen. The people who make the rules do not want it to happen. They just want to do something to satisfy the voters and still keep the pac money coming. So they do not want to solve the problem, they just want to finesse it. Little joe

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