Appearances are deceiving.
Reason, as per usual, has done a great job explaining the what’s going on with the recess appointment of Richard Cordray as head of the Consumer Financial Protection Bureau. Check out their The Cordray Appointment article.
In short, it’s a problematic appointment to an agency that shouldn’t exist performed in a shady way. Par for the course.
The MSM has been hailing Cordray as a regulator that will write laws to help prevent the next crash. I’ve seen my Facebook friends cheering this as a bold move for Obama to protect citizens from banks, in the face of Republican bank-lovin’ resistance.
Oh MSM and Facebook friends, this is just not so.
First of all, MSM, a lack of regulation didn’t cause the housing bubble. It was government inserting itself into the market. Specifically, the national government forced banks to lend to high-risk borrowers through the Community Reinvestment Act, then guaranteed risky home loans by creating a secondary market for them via Freddie Mae and Freddie Mac. What about that even broadly relates to a lack of regulation or oversight?
To my Facebook buds, I ask you, without government, how would a bank even fuck with you? From what do you need protection? If you don’t like or don’t understand a bank’s fees, can you not change banks? If you don’t enjoy high credit card interest rates, can you not choose not to rack up debt with that particular institution? I mean, how’s the government supposed to save you from spending more than you earn? Is that shit not on you?
All the banks suck, you say? How about a credit union? Mine’s pretty bad ass.
Banks, without government involvement, have to please customers to continue to exist, and can’t force anyone to do anything they didn’t previously agree to. Government enforces each stupid law it writes, with no input from it’s subjects, with guns. And we need the gun wielders to protect us from the banks? What?