Paul Krugman is too sophisticated to think that more regulation will temper excessive risk-taking in financial markets. (“Another Temporary Fix,” July 28) He should know that the more restrictive the regulations, the more opportunities conniving executives have to work the system.
Look at the case of Angelo Mozilo and Countrywide. Mozilo and his company thrived on regulation, and they used it to their advantage. Regulation brings CEOs and government officials together and splits responsibility between the two parties.
If Krugman really wanted to encourage responsible lending, he would endorse across-the-board deregulation, so as to permanently separate lenders from the government and remove the mechanism by which they both conspire to bilk the American people.
Ryan Krause ([email protected]) is a legislative specialist intern at The Heartland Institute in Chicago, Illinois.