Bush and company won't even more closely regulate these private banks. The Times Paul Krugman notes today in is column:
"...in a draft of a speech to be delivered on Monday, Henry Paulson, the
Treasury secretary, declares, “I do not believe it is fair or accurate to blame
our regulatory structure for the current turmoil.”
And sure enough,
according to the executive summary of the new administration plan, regulation
will be limited to institutions that receive explicit federal guarantees — that
is, institutions that are already regulated, and have not been the source of
today’s problems. As for the rest, it blithely declares that “market discipline
is the most effective tool to limit systemic risk.”
then, has learned nothing from the current crisis. Yet it needs, as a political
matter, to pretend to be doing something."
When will American wise up to this stuff, if ever?