Thursday, April 22, 2010
Financial Reform is Needed to Protect Free Markets!
The President knows that the members of the oligopoly in the banking industry are not going to go along with reform. Hopefully others in the industry will see that they are being abused by the oligopoly and support solid reforms that includes breaking up the oligopoly.
1. Banks cannot be too big to fail. If they are too big to fail they are too big to exist.
2. The financial services industry is not a free market and must be broken up. The industry is controlled by an oligopoly whose interest is not to provide the best products and services to the consumer. They are focused on keeping the oligopoly alive and making it stronger. Anti trust laws must be enforced to put the financial services industry back into a free market.
3. The industry needs more regulation. Milton Friedman, the economist most revered by many conservatives said in his book \"Free To Choose\" that the governments role in a free market is to be an umpire to assure that everyone is playing fairly. The industry needs better rules and better umpires.