1RuleNoRules

Could Better Capital Regulation Have Averted the Crisis?

The rules of the game make the game.
The game is a confusing jumble of distorted markets.
No surprise.
The cry for more regulation comes from the left because they believe capitalism is evil and only government can fix this. The crisis is their opportunity to win favor and the continued decline in American wealth and prosperity.

U.S. Forfeiting Billions in Future Taxes So Citi Can Exit TARP

Why should not NOL's incentivize strong banks buying weak and failing banks or any corporation? The real problem in this equation is how can the strong banks flip or spin-off these banks after they have become solvent again as to not create a too big to fail scenario?

Taxation must be seen as a necessary evil and not a revenue generating opportunity. To see taxation as income is to create bureaucracy and government institutions that become uncontrollable, power hungry entities that will fight all efforts to control.

Government must implement taxation strategy that is minimal and single layered. A strategy that does not distort markets, creates proper incentives and taxes all institutions at a single point in order to minimize the distortions to the market place. Taxes should add cost only as the institution adds burden to public resources such as transportation and pollution. This is why our manufacturing sector has been shrinking for the last 40 years. It has been burden unfairly with taxes and other disincentives.

Outlandish CEO Pay: How to Fix the Problem

The consensus here seems to be government needs to fix it.
When we change he question, less government is the answer.

What is wrong with our economy and the labor market for CEO's that even bad CEO's get ridiculous amounts of compensation? Big government has decimated the "farm system" of small and intermediate businesses that should have been creating the super stars of enterprise.Unemployment and stagnation are only the last symptoms of an economy under stress. The first signs(that we ignored) were stagnant wages, disposable everything from cars to toasters. Before layoffs came insidious cost cutting and stagnant wages because of endless erosion of opportunity that began in the late 60's.

www.cato.org/pub_displ...

www.house.gov/jec/grow...