A New Financial Foundation

[elleng]

This current financial crisis had many causes. It had its roots in the global imbalance in saving and consumption, in the widespread use of poorly understood financial instruments, in shortsightedness and excessive leverage at financial institutions. But it was also the product of basic failures in financial supervision and regulation. . .

That is why, this week -- at the president's direction, and after months of consultation with Congress, regulators, business and consumer groups, academics and experts -- the administration will put forward a plan to modernize financial regulation and supervision. The goal is to create a more stable regulatory regime that is flexible and effective; that is able to secure the benefits of financial innovation while guarding the system against its own excess.

In developing its proposals, the administration has focused on five key problems in our existing regulatory regime -- problems that, we believe, played a direct role in producing or magnifying the current crisis.

http://www.washingtonpost.com/wp-dyn/content/article/2009/06/14/AR2009061402443.html?hpid=opinionsbox1

[midnight]

1. I hope that flexible part provides loans to people who need them.

I hope it brings loans and grants to those trying to get through college.