The administration’s proposal sets out to restore the shadow banking system and all the various securities markets that have arisen in the past fifteen years or so, including credit default swaps. The underlying presumption is that these markets serve public purpose, that they can be restored, and that they should, in fact, be restored.

The presumption is not correct. - James K. Galbraith

Against the backdrop of blocking a Federal Reserve audit by the Senate, we have additional questions being raised on the Federal Reserve as Systemic Risk Regulator.

War of the Audit