“The Obama administration and the Federal Reserve, still smarting from the political furor over the bailout of American International Group, began a full-court press on Tuesday to expand the federal government’s power to seize control of troubled financial institutions deemed too big to fail.” (New York Times, Wednesday)
Government creates incentives for wild speculation, then insists on the power to seize firms that responded.
FEE Timely Classic
“Government Regulation and Business Management” by John Semmens