Obama officials are about to give a federal agency the power to police mortgages and other financial products. According to the Wall Street Journal, just a few issues still need to be resolved. One is the new agency's scope,determining just how much deeper government will intrude into the insurance industry and mutual funds. Another is whether to create a new agencyor consolidate power within an existing one.
Sadly, the idea of the feds creating mortgage police, mutual fund police, and insurance police won't raise many alarms. In fact, it'll be music to the ears of some Americans, who are frightened about the economyand who don't understand how the country got in this shape in the first place. If you're one of those,listen carefully:We are in this predicament because of government intervention in the first place.
You can trace all of these current debaclesright back to Washington. It was a Democrat Congress and executive branch that decided banks needed to loan money to people who could never pay it back. It was a Democrat Congress that refused to pull the plug on the national mortgage scamwhen it morphed into a multi-trillion-dollar, worldwide pyramid scheme.
Ask yourself this question, folks:If the government, with all the power and oversight they have over financial markets right now, has failed -- how will giving them even more powerproduce a better outcome? It can't. It won't. I can promise you...it's only going tomake matters worse.