Financial Services Committee Chairman Spencer Bachus released a statement at a subcommittee hearing on the economic impact of derivatives regulations contained in Title VII of the Dodd-Frank Act. The closing line of the statement was: “The 113th Congress will have the opportunity to examine if the rules promulgated by the SEC and CFTC can actually work once they are operational or if we will witness regulatory chaos and a flight of capital from the U.S.”
Lofchie Comment: One point that Chairman Bachus makes that I think important is that Dodd-Frank will have real economic consequences. Proponents of the statute hope those consequences will be positive; critics fear that those consequences will be negative. But at least some of the consequences should be measurable: volume of business, pricing, transaction costs, number of market participants and (I am sure) other data points. It would be a good thing if the government would make available to the public as many of those measurables as possible so that there can be as much assessment of the consequences as possible. If the consequences turn out to be materially positive, then certainly Congress should take as its goal that the next bit of financial regulation is twice as long; if the consequences are negative, perhaps we can erase some of what we have. But without some attempt to assess things that can be measures, we will all just keeping talk past each other.
View statement in full here (links externally to Financial Services website).
Steven,
but thats precisely why we have governments. They have no relevance, they only distract from what has happened to spin it as to however fits them most. And Im not singling out one type of government, all somehow show the same pattern of corruptive shizoprenia. Its big business, big government in almost every field of life these days ( including of course economic, fiscal and monetary policy ). Its a race to the bottom and it will end in the destruction of almost everything. The financial system will implode, currencies will falter the IMF needs to bailout itself for the last time and a new wave of middle age like rulemaking will kick it. We are doomed. And and by the way; they will expropriate private property. Seems like we have seen this before, right ?! Its not about countries its about governments everywhere – and they will fall – but before that more war of course.