Donnerstag, Februar 18, 2010

Ouch...Once Again


Once again: ouch.

Key Quote:

I know I sound like a broken record, but we simply need to demand a higher quality of work from our government.


The problem that so many government programs have - and this is not the fault of the workers - is that so many of them are simply not thought through, or, more exactly, were enacted based on lobbying work that presented only one side of the story to the congresscritters that approved the pork.

We need government economists that congresscritters would actually listen to - ye gods, what a concept - before those congresscritters go on to make mistakes that the taxpayer pays for.

Too much money being allocated for things that don't work: misallocation of capital is the original sin of economics. Once this happens, you always screw things up. Always.

But back to the subject of the link: how the Obama Administration's idea to impose a "Financial Crisis Responsibility Fee" is an appallingly bad idea.

If the goal is to reduce "casino activity", of highly risky trading, this fee doesn't work. It simply doesn't raise risk costs to those who take on lots of risk. Go read the whole thing, to coin a phrase...

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