Just yesterday Bob Murphy called Bernanke a joker. Today the mainstream media label him a cheerleader. Using a basketball analogy the Fed’s regulation of banking is characterized as encouraging recklessness.
“The U.S. banking system, both before and after the Great Recession, is the sort of run-and-gun outfit that yields bigger winning (and profit) margins in the early rounds and then struggles when the going gets tough. The stress test was an opportunity for the Fed to change that, and another opportunity missed. Unfortunately, there’s a lot more than a two-dollar bracket at stake.”
Of course there are multiple levels of government regulation over money, banking and finance and the whole point is to provide cover for the industry’s recklessness and to line the pockets of the privileged banksters. No “reform” of regulation will resolve these problems. Only a return to sound money and the automatic enforcement by the market will make banking well “regulated.”