Most of these and other changes in the bill are not based on a serious analysis of what contributed to the financial crisis, but rather are the result of political and emotional reactions to the crisis. Usually, such reactions do more harm than good. That is likely to be the fate of the great majority of the provisions of the Dodd-Frank bill.
Tuesday, July 13, 2010
Economics Nobel Prize winner Gary Becker explains in this post why the financial reform bill won't do much to solve any of the problems that caused the financial crisis, and may in reality make things even worse in the future: