In my previous three posts, I described what I believe needs to be done to reform our monetary, banking and housing finance systems. Here I will explain why the Dodd-Frank financial reform legislation is not a solution.
In fact, it will make problems bigger in the long term.
The four major deficiencies of Dodd-Frank are:
- The consumer compliance segment of the law is not about consumer compliance, it is about credit allocation. This is a fundamental move toward statism. If the government wants to control the economic system, the most eﬀective way to do so is to control the allocation of credit and capital...
To read the full BankThink post see "The Cure for the Banking Industry, Part IV: Why Dodd-Frank Is No Help"