More ineffective government regulation of the financial sector

Government action caused the economic crisis, not the free market .

‘To read the 0bama administration's new financial sector regulation overhaul proposal, the government didn't have anything to do with the current crisis. According to this view, our economy wouldn't be facing a recession with almost 10 percent unemployment if the government had been more involved with the market.’

Everything is built on a belief that the market failed and that deregulation created a system of excessive risk and irresponsibility. Ironically, it was government action that created incentives for financial firms to be less risk adverse, not a lack of regulation.

Europe currently boasts some of the world's tightest financial sector regulations, and its banks have suffered just as much, if not more than American banks in this recession.

Richard Fisher, President of the Federal Reserve Bank of Dallas, told the Wall Street Journal last month that regulators had enough authority to prevent a crisis. They simply failed to do so.