Ep. 31 The Nonsensical Case for More Regulation

15 April 2016     |     Tom Woods     |     3

Krugman is upset this week at a judicial ruling that held that the government’s case for naming MetLife a Systemically Important Financial Institution (SIFI) was inadequate and should be thrown out. Sure, it’s impossible to nail down what the criteria for a SIFI are, says Krugman, but so what? We take on the whole issue — not just MetLife, but the whole idea of extra regulation for so-called SIFIs.

Krugman Column

Snoopy the Destroyer” (April 11, 2016)

Special Offers

Get three free issues of the Lara-Murphy Report, Bob Murphy’s financial publication! Click here.

Get a free, 22-lecture, non-government-worshiping course on the U.S. presidents from Tom’s Liberty Classroom at FreeHistoryCourse.com.

Contra Column

MetLife Calls the Regulators’ Bluff,” by Peter J. Wallison

Related Link

Metlife Inc. vs. FSOC (PDF)

Books Mentioned

The Great Deformation: The Corruption of Capitalism in America, by David Stockman
Meltdown, by Tom Woods
Rollback, by Tom Woods

Event Mentioned

Mises Circle in Seattle, May 21, 2016

The Contra Cruise

Join us October 9-16 for an unforgettable week at sea!

Need More Episodes?

Check out the Tom Woods Show, which releases a new episode every weekday. Become a smarter libertarian in just 30 minutes a day!

Share this post:Digg thisShare on FacebookGoogle+Share on LinkedInPin on PinterestShare on StumbleUponTweet about this on Twitter
  • http://tklist.us TKList

    Three pillars of sand our economic system is built on:
    1.Federal Reserve Bank
    2.Fiat Currency
    3.Fractional Reserve Banking

    The Federal Reserve tries to regulate the economy. Their mandates are maximum employment, stable prices, and moderate long-term interest rates.

    The Federal Reserve creates money and or makes money inexpensive by manipulating interest rates lower. Rarely manipulating rates higher. This is inflation. Prices go up and real wages go down.

    The Federal Reserve creates bubbles and crashes by pushing interest rates too low or too high for too short or too long of time.

    Who regulates the regulators at the Federal Reserve to keep the people safe from it and its mistakes? The only real regulator possible is the free market.

    With the Federal Reserve in place the market becomes the judge of the Federal Reserve decisions, rather than the regulator.

    The Federal Reserve in essence aids debtors and punishes savers. A depreciating dollar aids debtors and harms savers. An appreciating dollar aids savers and harms debtors.

    If you start giving an economy fish (easing Federal Reserve monetary policy, excessive federal government spending; deficit, national debt), the economy starts fishing less and starts dining more. Temporary misallocated (Keynesian stimulated) employment increases and sustainable production employment decreases.

    Abolish the Federal Reserve, the FDIC and all bank regulations except one; require full disclosure on full or fractional reserve backing of deposits. Treat gold, silver and cryptocurrencies as legal tender (not as an asset) for tax purposes.

    If you are concerned about the growing income inequality gap, if you are against war, against the military–industrial complex, against mega-mergers of companies and against invisible taxation, then you are against the Federal Reserve.

  • http://tklist.us TKList

    The collusion between the federal government and banks with the Federal Reserve, FDIC, FHA, HUD, Freddie Mac, Fannie Mae, Community Reinvestment Act and more is what led to the financial crisis.

    When government gets in bed with big business we get: ratings agencies rubber stamping investments, regulators looking the other way, banks giving liar loans, the government bailing out banks and taxpayers paying for everything.

    Abolish the Fed, FDIC, FHA, HUD, Freddie Mac and Fannie Mae. Repeal the Community Reinvestment Act.

  • https://instagram.com/dylandutson/ Dylan T. Dutson

    I just ordered The Great Deformation because of this. So excited to get into it, and great show!