This is Not Your Father’s Recession

President Obama unveiled his administration's proposal to overhaul financial regulations

President Obama unveiled his administration’s proposal to overhaul financial regulations

In an effort to reduce the frequency of “middle-of-the-night telephone calls and unpalatable decisions” that characterized the early, nail-biting moments of the recession, President Obama has sent Congress a package calling for a new oversight council to study regulatory gaps and issues that don’t fit into the traditional framework.  Eventually, this move will lead to the creation of an agency to oversee consumer financial products and will give Washington the tools to make accountable the shadow system of finance that has grown up outside the government’s oversight and will make it easier for regulators to head off problems at large, troubled institutions or take control of them if they fail.  Balancing honest, vigorous competition and unregulated easy money is the overarching objective and although it will undoubtedly be framed as draconian by critics, ironically, this move may still not be bold enough.

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