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May 16, 2008 5:28:02 AM CDT

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Market 'Fix' Just Feeds the Beast  

Posted Mar 31, 08 5:08 PM CDT in Business,  US    Most Covered

(newser) – The Treasury plan unveiled today will never rein in free-wheeling markets because it isn't intended to, Paul Krugman writes in the New York Times. President Bush, who for 7 years has slashed at regulations, ignores how well they harness deposit-taking banks. And he denies that "non-depository" banks like Bear Stearns need them too.

The new plan can only "succeed in confusing the issue sufficiently to stand in the way of real reform," Krugman writes. “To reverse course now, and seek expanded regulation, the administration would have to back down on its free-market ideology, and it would also have to face up to the fact that it was wrong. And this administration never, ever, admits that it made a mistake.”

Source New York Times

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Market 'Fix' Just Feeds the Beast
Treasury Secretary Henry Paulson   (AP Photo/J. Scott Applewhite)
Market 'Fix' Just Feeds the Beast
President George W. Bush urges Congress to move on his legislative agenda as he and first lady Laura Bush prepare to depart the White House for Europe, Monday, March 31, 2008.   (AP Photo/J. Scott Applewhite)
Market 'Fix' Just Feeds the Beast
President Bush, flanked by Treasury Secretary Henry Paulson, left, and Federal Reserve Chairman Ben Bernanke.   (AP Photo/Gerald Herbert, File)
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George W. Bush  • Federal Reserve  • Bear Stearns  • Henry Paulson  • regulation


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