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Peter Wallison writes,

The dominant theme of the 2,300-page Dodd-Frank Wall Street Reform and Consumer Protection Act is fear of instability and change...Where [non-bank] financial firms once focused on beating their competitors, they will now focus on currying favor with their regulator, which will have the power to control their every move. What may ultimately emerge is a partnership between the largest financial firms and the Federal Reserve--a partnership in which the Fed protects them from failure and excessive competition and they in turn curb their competitive instincts to carry out the government's policies and directions.

This echoes my fear, which is that we have turned the entire financial system into Enron.

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Rebecca Burlingame writes:

And indeed if we have turned the financial system into Enron, some people, even economists, are becoming convinced that money-based economic systems are completely broken. What worries me is that, in spite of the fact that money does not work well for all resources, (especially the ones that find their way into entitlements), money is still the best measure of physical resources. Anyone who tries to separate physical resources from ownership would create a nightmare for libertarians.

If financial systems blow it completely, people might eventually turn away from the use of money for physical resources. I sincerely hope that society does not reach that point.

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