More oversight has solved our problems in the past...

"Lax Oversight Caused Crises, Bernanke Says" NY Times January 3, 2010

I would like to support Mr. Bernanke's contention that the problem for our economic woes was a lack of oversight. First let's define oversight.

Oversight: Management by overseeing the performance or operation of a person or group.

Ok, now let's look at examples of how oversight has been so very successful to help support Mr. Bernanke's assertion.

Hmmmm.....

Oh...yeah...Fannie Mae and Freddie Mac! Yes, they had direct oversight from Congress. In fact, they are quasi government agencies. And we all know that even though the private sector crashed, these agencies, with the most oversight of any other financial institution survived just fine.

What? Oh...you mean they didn't? Oh, my mistake. What was that? Congress had to bail out of these fine institutions with the most oversight and they caused the biggest problem? That the US taxpayer is responsible for unlimited losses? Now Congress is pushing Fannie Mae to make more sub-prime loans?

Ok, one example does not disprove Mr. Bernanke's example.

Let's move on...Medicare is actually run BY the government. Now that is as regulated as it gets and it is one of the most efficient organizations there is. You can't get more oversight than that!

What? No, that can't be. 25% of payments are fraudulent? Impossible! Inconceivable! But Congress has complete oversight! That can't be.

OK...let's go the other way. Let's look at an industry that is totally unregulated, run by greedy business people run amok. For example, the computer industry has hardly any regulation. What a failure!

What? The cost of computing power has shrunk by 1000s of times? Computers are as cheap as TVs? Your iPhone has 100s of times more computing power than put the man on the moon?

Ok, that may not be a good example either.

But that doesn't mean that he is wrong. Just because the most regulated industries tend to create the most problems, and the least regulated cause the least problems, doesn't mean Bernanke is wrong. It simply means that we don't have ENOUGH regulation. We have just taken half measures. We need to go all the way.

How about nationalizing the banks as suggested by Congressperson Maxine Waters?

in reference to: Bernanke Blames Weak Regulation for Financial Crisis - NYTimes.com (view on Google Sidewiki)