Stratospheric CEO bonuses. Landmark meltdowns (Enron). Immense blowups (Bernie Madoff). The stock market landscape is like walking through a mine field blindfolded these days. The cries of “More regulation!” or “Less regulation!” echo from every quarter. Maybe the problem is not that Wall Street is regulated by miscreants or mental midgets. Perhaps the problem is this “venerable” institution is saddled with the wrong kind of regulation.
Could it be possible that we have, sitting in positions of power and authority, people entirely unequipped to deal with the responsibilities entrusted to them. For example, let’s take good old Barney Frank of Connecticut. Representative Frank is the Head of the House Financial Services Committee, a key government position. One would expect a man overseeing the financial services industry to have an extensive background in all sorts of investments.
Expect that, and you would be wrong.
Financial author, Eric Tyson, points out that by reading congressional mandated disclosures, you can quickly discern Frank doesn’t understand investing in the stock market. He doesn’t understand investing in real estate. His own modest holdings are heavy in municipal bonds. Is this bumbling tantrum-thrower REALLY the best of our best, ready to lead the world’s most prosperous nation through this time of market tumult and chaos?
Maybe. Maybe not. Sure doesn’t appear so when you look at the stats.
