???If something is a day overdue and a dollar short, it is still too little, too late.
???Treasury secretary Timothy F. Geithner outlined his plan to bolster financial regulation on Thursday. His plan is to subject hedge funds and traders of exotic financial instruments, some of the biggest and fastest-moving players on Wall Street, to strict new government supervision. His mind is in the right place, but the plan is months behind schedule. It should have debuted moments after Geithner was appointed.
???Deregulation of the financial industry has been going on since the 1970s. It is both responsible, in many ways, for the recent "golden age" in America and the economy's recent collapse. We are essentially getting what we asked for and are experiencing buyer's remorse. Allowing trade oversight to disappear led to widespread greed and disregard for sound business practices.
???Nobody complains during the boom cycles, but when things go wrong everyone is quick to yell bloody murder. Regulation is needed, but stripping power from these institutions can be a serious problem.
???The idea that the government needs to see every company's inner workings is ridiculous. This seems to be a first step in nationalizing the financial industry, which makes the general population very uneasy about all these measures. To nationalize enormous companies can lead to harmful results.
???Geithner's proposal seems to be to allocate to a federal agency the power to police risk across the entire financial system. The agency would regulate the largest financial firms, including hedge funds and insurers not currently subject to federal regulation. It also would monitor financial markets for emergent dangers, like the one Americans are in.
???While these measures could potentially manipulate the capitalist spirit, it maybe necessary to restore the faith in the fiscal system.
???Blame for the financial crisis should be directed to the CEOs allowing their companies to take on such massive debt. It is bad fundamental business. These executives were supposed to be the cream of the crop, putting on the right pedigrees from Harvard and Penn business schools. Clearly, they forgot the curriculum.
???The problem with economics these days is that no one knows what these policies will do. Given the time needed to implement and execute these polices, they may only cause more harm in areas we haven't even seen yet.
???Take a step back to last year. Did anyone talk about Wall Street bankers? No. Americans enjoyed blissful ignorance. Now, global financial markets have melted down and the public is asking for their heads. How about the stockholders who disregarded the annual reports just so long as their dividends were sky rocketing?
???The plan's scope has left onlookers a feeling of both wanting and worry. Hopefully, its execution will quell those emotions.
Photo: Courtesy of Laron Fomby
