In the wake of subprime losses we are hearing claims that the United States should have regulated its banks more. It is worth pointing out that the US has some of the most heavily regulated banks in the world. It is plausible to argue that the United States should have fewer bank regulators (I’ll nominate the Fed for the main role), but that consolidation should be accompanied by greater efficacy of regulation. In the meantime there are too many regulatory authorities, and too many regulations. We have completely blurred lines of accountability, legal, political, economic, and otherwise.

the real problem is a culture that fetishises home ownership.

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