Monday, June 15, 2009

Rules, Regulations and Laws

There aren't many reasons for having a government that doesn't rule. The unfortunate use that was made of this one for the previous maladministration was simple protection of the moneyed interests from rules.

The results have been catastrophic. While I have reservations about the authorities now in place to prevent further losses, I do have hope that a return to sound practices is in progress. Today's WaPo op-ed from Treasury Secretary Geithner and Director Summers of the National Economic Council give reason for optimism. They have written up a series of needed controls for a financial system that had been looted rather than used to our advantage. As Mr. Geithner has stated, we need to act not, while the need is still at the forefront of our consciousness.

The financial system failed to perform its function as a reducer and distributor of risk. Instead, it magnified risks, precipitating an economic contraction that has hurt families and businesses around the world.

We have taken extraordinary measures to help put America on a path to recovery. But it is not enough to simply repair the damage. The economic pain felt by ordinary Americans is a daily reminder that, even as we labor toward recovery, we must begin today to build the foundation for a stronger and safer system.
Some people will say that this is not the time to debate the future of financial regulation, that this debate should wait until the crisis is fully behind us. Such critics misunderstand the nature of the challenges we face. Like all financial crises, the current crisis is a crisis of confidence and trust. Reassuring the American people that our financial system will be better controlled is critical to our economic recovery.

Exactly. If we do not acknowledge that laws are for the purpose of protecting the people, and are needed for that reason, we ignore the reason for government.

When people who have no desire to keep this country's people safe are in power, there is obvious danger to our well being. Nothing has been more proven than that ill will toward America cannot ever again be allowed to happen in the highest realms of the U.S.

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