The desire among politicians and their regulatory enablers to foist ever=higher capital requirements on banks is relentless, and for being relentless, dangerous.
Supporters of regulatory decrees and laws meant to force banks to sideline more funds is said to be rooted in good things. In particular, it’s said that if banks have more in the way of sidelined funds, they’ll be better able to weather unexpected storms.
It all sounds so wise at first glance, but only at first glance. Given a second pass, if what regulators and politicians want for banks is so good for them, why the need for regulations or laws?
Read the Full Article at Forbes.
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John Tamny is Founder and President of the Parkview Institute, editor of RealClearMarkets, senior fellow at the Market Institute, and Senior Economic Adviser to mutual fund firm Applied Finance Group. Tamny is the author of eight books. His latest is The Deficit Delusion: Why Everything Left, Right and Supply-Side Tell You About the National Debt Is Wrong. His others are Bringing Adam Smith Into the American Home: A Case Against Home Ownership, The Money Confusion, When Politicians Panicked: The New Coronavirus, Expert Opinion, and a Tragic Lapse of Reason, Popular Economics, Who Needs the Fed?, The End of Work, and They're Both Wrong: A Policy Guide for America's Frustrated Independent Thinkers.
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