The financial regulatory reform bill does not address consumer welfare, producer surplus, market failure, income, demand, or output; therefore, it is a waste of time and an unnecessary burden on banks.
I think what most Americans miss is the connection the Obama administration tries to make between the overall economy and the financial markets. The slowdown in output, which I believe was due to poor earning power amongst consumers, came before the credit meltdown in the financial markets.
Remember, the decline in output, or gross domestic product, started in December 2007. The credit crisis was identified in September and October 2008. Candidate Obama deftly connected the two after Senator John McCain’s misconstrued assessment of the economy’s soundness.
Although he was right at the time, Mr. McCain was flying through a cloud of no credibility by failing to educate the public on the difference between the economy and the financial market while showing recklessness in choosing discontinued Alaska governor Sarah Palin as his running mate.
Now Mr. Obama is stuck in a policy blunder of his own making, trying to persuade Congress that it should come together and vote for a bill that is supposed to save the economy even though it is not designed to save the economy.