Roger Koppl on the new Office of Financial Stability

From Roger Koppl:

"We learned today that 35 year old Neel Kashkari will head the new Office of Financial Stability created by the bailout bill. Press reports suggest Kashkari is the main architect of the bailout plan. That fact, his relative youth, and his tight links to Treasury Secretary Paulson are all reasons to feel the blood run cold in your veins. The fact that we have a stability czar at all, however, is the really salient -- and chilling -- fact. Having an energy czar did not relieve lines at the pumps and probably made things worse. Having a drug czar has not eliminated trade in prohibited drugs. We are being asked to put our trust and $700 billion of our dollars in the hands of a supposed wonder kid whose personal wisdom and leadership will ensure stability. They couldn't have gotten it more wrong. Politicizing the problem of financial stability will only make it worse, perhaps much worse. The bailout has further effaced the difference between the private and public sectors, further politicized financial markets, enshrined too-big-to-fail, and helped pave the way for the political control of all aspects of our lives. Be frightened. Be very frightened."

Comments

[John V]

It's just dripping with this:

http://www.youtube.com/watch?v=NHETHsG0WVk

How disgusting.

[Bogdan Enache]

They're not waisting any time; the same day the US Treasury announced that it's hiring a lot of financial consultants : http://www.treas.gov/press/releases/hp1185.htm

[Steve Horwitz]

Well one bright spot in this. Kashkari is a Rush fan. http://www.nypost.com/seven/10072008/news/nationalnews/mr__rescue_is_kash__kari_132501.htm

[Anthony]

The very title of the office describes the error. Economies are dynamic. And politicians, who often run on wishful thinking, don't know the difference between stable and static.