"The [Fed] is rapidly becoming the world's largest financial garbage dump, as for months, it has agreed to accept banks' asset-backed securities, including sub-prime real estate bonds, as collateral in return for US Treasury bond purchases. ... Meanwhile, some investors are viewing the Paulson bailout not as a bid to rescue the US economy but a lifeline for his former Wall Street cronies as the country's big banks teeter towards a financal implosion", F. William Engdahl at http://www.atimes.com/, 16 July 2008.
Regulators need new tools? Why? To conceal bailouts, that's why. Isn't HP brilliant, "regulation alone cannot eliminate all future bouts of market instability". HP even recognizes moral hazard exists. Wow. What do we need HP for? The bottom line: many major financial institutions are at death's door and Chris Cox's SEC is looking for ways to hide this from the public. Got gold? Get more! Why do we need more regulation anyway? We have Wall Street executives making tens of millions a year, surely they know how to manage their own companies? Don't they?
Temporary? New York City established rent control in 1943 as a temporary WWII measure. It's still there. Instill confidence? Are the Feds playing three card monte with the public?