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Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?

To: Dale Baker who wrote (61090)	4/23/2008 2:37:44 PM
From: Lane3	Read Replies (1) \| Respond to of 542060

I'm in favor of having some of them keep up with current events in their area of responsibility and bring potential problems to the attention of policymakers Yes, that's why I mentioned whistle blowers. The political upchain gets credit for implementing administration policies, not finding problems, unfortunately.

To: Dale Baker who wrote (61090)	4/24/2008 1:28:03 PM
From: TimF	Read Replies (1) \| Respond to of 542060

I'm not particularly confident that the federal bureaucracy would be better at identifying the early stages of a problem and figuring out the appropriate response, than the risk management employees at banks and investment banks with billions on the line. If they didn't see the problem coming until it was to late to prevent it, why would federal employees have so much more ability to do so? Risks where underestimated, the adjustment to that will cause some pain, but I don't think having someone else estimate the risks solves the problem. I'm even less confident of politicians ability to recognize the problem or approve the correct finding, possibly in the midst of a bunch of incorrect findings, from the bureaucracy, and than than push through the appropriate action. Government is good at providing the solution to the previous problem. This may or may not be relevant to each new problem. If the feds are going to ensure institutions, some general regulations like capital requirements might makes sense (although now would not be the time to implement them), but even these are problematic, because they can have a pro-cyclical effect.