No Regulation without Risk
Letter to the Editor

"How are you going to regulate systemic risk when you are the systemic risk?" This excellent question of Senator Jim Bunning to Federal Reserve Chairman Ben Bernanke hasn’t been answered by the Fed or anybody else. Nonetheless, the Fed, which had a big part in inflating the bubble, is now nominated by some elected representatives of the people to be a philosopher-king of systemic risk. Let us hope this notion will fail to get enacted.

Thomas G. Donlan, in the Oct. 26 Editorial Commentary, suggests that such ideas are a matter of "false faith." He's right. After having observed financial regulation fail time after time, its adherents still display this touching (or pathetic) faith that somehow it will work next time, if we just make it even more pervasive and more intrusive.

Alex J. Pollock is a resident fellow at AEI.

Also Visit
AEIdeas Blog The American Magazine
About the Author

 

Alex J.
Pollock

What's new on AEI

Poverty in America—and What to Do About It
image GDP for second quarter: Strong headline, weak innards
image Paul Ryan and the emerging conservative reform agenda in higher education
image Democrats' impeachment fixation
AEI on Facebook
Events Calendar
  • 28
    MON
  • 29
    TUE
  • 30
    WED
  • 31
    THU
  • 01
    FRI
Tuesday, July 29, 2014 | 10:00 a.m. – 12:00 p.m.
Is Medicare's future secure? The 2014 Trustees Report

Please join AEI as the chief actuary for Medicare summarizes the report’s results, followed by a panel discussion of what those spending trends are likely to mean for seniors, taxpayers, the health industry, and federal policy.

Friday, August 01, 2014 | 10:30 a.m. – 12:00 p.m.
Watergate revisited: The reforms and the reality, 40 years later

Please join us as four of Washington’s most distinguished political observers will revisit the Watergate hearings and discuss reforms that followed.

Event Registration is Closed
No events scheduled this day.
No events scheduled this day.
No events scheduled this day.
No events scheduled this day.
No events scheduled this day.
No events scheduled this day.