Tuesday, May 27, 2008

Goolsbee loves regulation

From the WSJ:

Austan Goolsbee, an economics professor at the University of Chicago and one of Sen. Obama's closest advisers on economic issues, said the senator believed strongly in enhanced regulation of any financial institution that has access to the Fed's discount window.

"If you can borrow money from the U.S. taxpayer at a moment of crisis, that is a very sacred insurance policy underwritten by the U.S. taxpayer," said Mr. Goolsbee in an interview last week with Dow Jones Newswires. "We have the right to oversee anyone who is accessing that insurance policy."

The Fed is an independent body precisely to fend off this type of thinking: Ivory tower types who think they know more than the folks who run the Fed on a day to day basis.

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