COMMENCING 2010 WITH HOPE AND REGULATION

*REASONABLE REGULATION IS THE KEY TO STABILITY
*LESSONS TO BE LEARNED FROM PAST POLICIES OF THE LAST DECADE
Astoria, New York
We start 2010 on a hopeful footing. We hope that things will be different and better than the previous decade. We learned that regulation is a necessary evil. But we have learned that reasonable regulation is necessary for capitalism to survive. When Larry Kudlow, show host at CNBC, says that we need the FED to get out, we plainly want to laugh at him. He is the guy who said to a bunch of investment professionals that he was sorry that he had made a mistake in 2008.
Free capitalism does not work. Tough regulations don't work either. A blend of reasonable regulations have to be implemented and the FED has to act upon any anomalies in the economy with speed. And we mean it when we say reasonable. When interest rates went down in 2001, I believe it was unreasonable from the economic point view. When bank companies executive were getting large bonuses even though banks were loosing money and overlending, I believed that to be unreasonable too. Anomalies of any kind ruin the stability of the economy at the macro level. We need the FEDS to look more at the macroeconomics and less at the microeconomics so they can make sure that the events of the past decade don't occur again anytime soon.