Scott Brown’s Financial Regulation Failure

Prof. William A. Jacobson
Legal Insurrection

Scott Brown didn’t see the forest for the trees in deciding to support Chris Dodd and Barney Frank’s financial reform legislation.

Although Olympia Snowe and Susan Collins went along also, they did so only after Brown made his announcement. If Brown had come out strongly against the legislation, it could have been stopped.

The fundamental problem with the legislation is that it doesn’t address — as Brown acknowledges — the underlying problems with the mortgage market. It was the mortgage bubble, instigated by liberal social justice demands placed on Fannie Mae and Freddie Mac, which caused the crisis, not a failure of securities rules and regulations.

No mortgage market problems, no mortgage-backed securities problems; no mortgage-backed securities problems, no financial crisis.

One of the greatest scams ever is the success of Democrats in distancing their mortgage policies from the financial crisis, and portraying the crisis as simply a matter of Wall Street greed and lack of regulation…

…Also worth reading, Sen. Tom Coburn, Financial Reform’s Empty Promises, and Michelle Malkin, The Dodd-Frank monstrosity

The complete article is at Legal Insurrection.

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