Reform Movement

We always wish for money
We always wish for fame
We think we have the answers
Some things ain't ever gonna change
--John Waite

Whenever times get tough, politicians jump out of the woodwork with proposals for 'reform.' To them, reform represents a ticket to political power punched by special interest groups.

That said, this to-do list offered under auspices of banking reform contains some good thoughts. The items are more in the spirit of true re-form the sector towards naturual market state. Most reform movements actually de-form market structure.

My favorite is eliminating FDIC insurance. Cloaking banks w/ an FDIC put disengages consumers from critical search for financial service value. As Peter notes, this fosters the moral hazard/too big to fail outcomes that will ultimately, er, break the bank.

Great quote at the bottom: "Over the past 80 years...we've traded bank runs for country runs."