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Say Goodbye to the Reagan Revolution

Leaders abandon deregulation for a hands on approach

By Clay Dillow, Newser Staff

Posted Jul 25, 2008 11:18 AM CDT

(Newser) – The Reagan Revolution, which ushered in a quarter century of deregulation, looks as if it's taken a stake in the heart, the Wall Street Journal reports. The Fed is offering tens of billions in emergency loans to failing banks, the SEC wants more power to regulate financial institutions, and the Treasury arranged JPMorgan’s purchase of Bear Stearns and then lobbyied Congress to prop up Fannie and Freddie. Is it dead, or just wounded, the Journal wonders.

By 53%-42%, Americans want the government to intervene more, a reversal of a dozen years ago when two-thirds opposed government action. Though a full-scale rollback of deregulation is unlikely, the Journal opines, failures by businesses like Enron and Worldcom, coupled with successes by agencies like the Fed in curbing inflation and limiting the pain of recessions have renewed Americans’ faith in state regulation.

Federal Reserve Chairman Ben Bernanke has endoresed increased oversight at banks and underwrote the Bear Stearns buyout by JPMorgan. (AP Photo/Susan Walsh)

Goodnight, sweet prince: President Ronald Reagan's legacy of deregulation is falling out of style with Americans who want the government to do more. (AP Photo/Dennis Cook, File)

Treasury Secretary Henry Paulson has gone from laissez-faire to hand-on in his approach to government regulation in financial markets. (AP Photo/Richard Drew)

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Say Goodbye to the Reagan Revolution

Leaders abandon deregulation for a hands on approach

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More Newser Stories

Global Economy Needs Shelter From the Storm

Think of it as a bankruptcy; with help, it can recover and thrive

Bailout Won't Bail Out Bernanke

Nation needs explanation of how it will help

Fed, Treasury Fall Back on Existing 'Inadequate' Tools

With no federal deal, agencies limited to ad hoc solutions

Bernanke, Paulson Put Fear of God Into Pols

Of meeting with officials, lawmaker says: 'We have never heard language like this'

Senator: Fire 'Socialist' Paulson

Ky.'s Bunning appears to have problem with Fannie/Freddie move

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Say Goodbye to the Reagan Revolution

Leaders abandon deregulation for a hands on approach

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OTHER STORIES ON OUR RADAR

Ben Bernanke • Federal Reserve • Henry Paulson • Ronald Reagan • laissez faire economics • Reaganomics • deregulation • financial crisis

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Global Economy Needs Shelter From the Storm

Think of it as a bankruptcy; with help, it can recover and thrive

Bailout Won't Bail Out Bernanke

Nation needs explanation of how it will help

Fed, Treasury Fall Back on Existing 'Inadequate' Tools

With no federal deal, agencies limited to ad hoc solutions

Bernanke, Paulson Put Fear of God Into Pols

Of meeting with officials, lawmaker says: 'We have never heard language like this'

Senator: Fire 'Socialist' Paulson

Ky.'s Bunning appears to have problem with Fannie/Freddie move

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Newser By Users

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