More must be done to enhance growth now, which will give room to "get out economic house in order". Sacrifices alone will not boost long-term prosperity, and the short-term damage of severe "austerity" is obviously unacceptable (see Euro-zone). If the GOP has forgotten that the debt-limit agreement of last year already "triggered" debt reduction criteria, so, to what "lack of seriousness" about debt reduction does Mr. Boehner refer, I wonder? I believe that the lack of seriousness has been on the part of those who refuse to admit that tax breaks and shelters for already profitable sectors has not resulted in middle-class prosperity and that, when private resources are unavailable, government investment is essential. Mr. Boehner seems to think that it is "more irresponsible" not to cut back on grandma's health care or grandpa's SSI than to default on paying all of our bills. It is a lie to insist that stimulus has not worked or would not. Decreased "entitlement" and discretionary spending does not yield cost control, but does affect living standards. With regard to tax reform, was is not the GOP that blocks closing of loopholes and relaxing of oil industry subsidies? A gun to the head of the economy is not a diplomatic offer for compromise, in my opinion, and the Republican party leadership should be ashamed of holding us hostage.

Companies that engage in very risky behavior (credit default swaps, hedges, etc.) must be regulated in order to avoid the type of interconnected damage that led to the Great Recession, all reasonable folks agree. Arguments against regulatory rigor are out of touch, in my opinion, with the matter of facts. Regardless of the diversity of business models or assessment of "size" (too big), no automatic exemption from systemic importance should be given to specific companies - no bright line separates "safe" from "unsafe" models. I do not believe that proposed capital requirements or regulatory diligence arbitrarily "punish" non-bank institutions (such as insurance companies). I think that the broadest framework should cover enhanced prudential standards into which "risky" practices can fall (no excluding/hiding some). Thomas Quaadman (Chamber of Commerce) told the House Finance Committee that the "Title One" (Dodd-Frank) got the balance struck between transparency and regulation in relation to systemic risk with beneficial risk-taking was done well. Complaints were leveled against "bank-centric" definition of "systemically risky" institutions (not applicable to traditional insurance activities) being too narrow, and there is resistance to capital and liquidity levels required for "safety". Nevertheless, the problem of excessive extraction of wealth from commerce for the sake of creating wealth for its own sake has been proved too dangerous to continue unregulated, as any reasonable thinker knows. Stabilizing the financial sector and bringing down our debt are long-term priorities, for sure, but near-term growth, in my opinion, is most important.

Comments

Add comment

Login or register to post comments

Latest Headlines

Who rejected United States-North Korea peace talks?

There were conflicting reports on Sunday regarding a recent proposal for United States-North Korea peace talks which was allegedly made before North Korea"s recent nuclear test

U.K. Pound Falls As Markets Get Brexit Jitters

Bloomberg said on Monday the pound had sustained its biggest fall against the dollar in 11 months

Clinton: I'll defend Israel but push for 'two-state solution

Hillary Clinton believes both Republican candidates Donald Trump and Ted Cruz "missed the mark" with their approach to the Israel-Palestinian Arab conflict

Secretary John Kerry Makes History At The UN

While much of the mainstream media was focused on 2016 election cycle, Secretary of State John Kerry was making history with his granddaughter at the United Nations. Last week, Secretary Kerry joined a gathering of the majority of the world's nations and signed on to the historic Paris Climate Accord.