Kling on Regulatory Reform

Arnold Kling's excellent take on Obama' regulatory reform proposal, "What's Wrong with the Financial Regulation White Paper."

Overall, the white paper offers a highly skewed narrative of the financial crisis. All of the misbehavior took place in the private sector. No mention is made of government policies that contributed. Instead, the story is one of government that needed a better regulatory structure and more powers.

Intellectually, this is a very disappointing piece of work. But given political considerations, I cannot say that I am surprised.