JP Morgan and You
The Administration—and many others—think regulation and legislation are cure-all’s for whatever ails you.
Warts? Write a regulation addressing the issue. Constipation? Legislate more fiber. Loss of worldwide competitiveness? How about a quid pro quo $100 billion bailout for a $34 billion company?
So expect legislative and regulatory weeping and gnashing of teeth regarding JP Morgan’s $2 billion “proprietary trading” loss.
Ignored is this: while JP Morgan lost $2B, others won $2B.
Additionally, the failures of legislation, regulation, and ever-increasing government control are generally blamed on… not having enough government to regulate effectively.
The reality is human nature is flawed and we are fallen creatures. Our combination of deviousness, selfishness, and laziness means loopholes will always be exploited, rules will be ignored, and the watchers will not always watch.
If the Administration was willing to write rules they were forced to observe themselves, it would be one thing. But like that rich French socialist, it’s always do as I say and not as I do and pay as I say and not as I pay.