Members of Congress must figure out how to overhaul the regulatory structure overseeing the U.S. financial system. Stricter rules governing risky financial products are long overdue. Avoiding a repeat of the current financial mess, which had its roots in tremendous excesses in the subprime mortgage market and rapidly eroding value of widely-held mortgage-backed financial products, is an absolute necessity. The bailout package that the Bush Administration got Congress to approve – with some changes – isn’t the answer.
Democrats are in control of Congress and now they must work hard to strengthen the current regulatory framework. The regulatory system – as it exits today – has been a gigantic failure. Both Democratic and Republican members of Congress must surely know that a strong, effective supervisory system is badly needed and long overdue. The Republicans in the White House and Congress have been “deregulators” and that is one of the main causes of the economic crisis that is causing severe problems to American citizens. Depending on “the markets” to solve economic problems, without strong and effective regulation, will never be the answer. That approach simply won’t work. You can’t allow any industry to regulate itself and the GOP has learned that lesson the hard way. We can’t allow the “foxes” to be in charge of the “hen house” any longer. We are paying for that approach dearly today!
Source: Associated Press
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