Arnold Kling  

Henry Waxman's Hearings

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He says,


In light of the dramatic events that have occurred in global financial markets, the Oversight Committee will hold five hearings in October to examine the regulatory mistakes and financial excesses that led to the market breakdowns on Wall Street.

From the topics of the hearings and the witnesses called, I gather that his view of the causes of the crisis are a bit different from mine.


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Steve Roth writes:

I only hope that--unlike the econoblogosphere--they pay some passing attention to the Commodities Futures "Modernization" Act that Gramm snuck through in '99 with no debate.

A regulation that made regulation illegal. It specifically banned regulation of CDSes. As in, capital/leveraging limitations, which would have gone far to dampen the secondary mortgage market.

For Gramm, it seems, modernized regulation is no regulation.

For those who cares, my screed here:

The Problem Was Not Deregulating. The Problem Was Not Regulating.

http://trueconservative.typepad.com/trueconservative/2008/10/the-problem-was-not-deregulating-the-problem-was-not-regulating.html

Corey S. writes:

The answer is clear: too many steroids in baseball. Wall Street securities exchangers got a little too exuberant about Bonds breaking the home run record, and well, here we are today.

Seems about as relevant as the other explanations Congress will come up with.

Sam writes:

Waxman's my congressman. For what it's worth, I just called his constituency office and recommended they invite you to testify as well.

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