“Real financial stability comes from an economy where businesses are allowed to operate day to day and plan long term with a minimum of government intrusion. The more we impose regulations to eliminate economic cycles (which are fundamental in a free market) and create soft landings, the more we are ensuring a lackluster, low-employment economy.” Carl Schieffer, Dallas…

…”Does Mr. Lew, who was a Citigroup executive in 2008 when it required a massive taxpayer bailout, honestly expect us to believe he knows what he is doing when it comes to assessing taxpayer exposure to major financial institutions? The lunatics are running the asylum.” Joseph Bentivegna, Fairfield, Conn., The Wall Street Journal, Letters to the Editor, April 26, 2016

Opinion Letters

Lew and the FSOC: First Do No Harm, Please

Who believes Jack Lew knows what he’s doing when assessing taxpayer exposure to financial institutions?

I had to laugh as I finished Treasury Secretary Jacob J. Lew’s “Why We’re Reviewing Asset Management” (op-ed, April 20) on the Financial Stability Oversight Council’s work to make our country financially sound. Obviously the council is focused on financial institutions. But the gorilla in the room of threats to U.S. financial stability is current monetary and fiscal policy. How do people like Mr. Lew feel about the federal deficit and artificially low interest rates?

The real risk to our system is that politicians continue to expand spending beyond our means. At some point our system could collapse under the pressure of huge federal deficits and higher interest rates. In this environment Mr. Lew’s fellow progressives are expanding entitlements and promising to pay for them by taxing the 1%. Fat chance that works. The real threat to financial stability is Mr. Lew and other progressives’ irresponsible fiscal policy.

Guy Randolph

Savannah, Ga.

The economic illiteracy of this administration continues to create an environment that is hostile to the financial stability it is seeking. The irony in the name of Mr. Lew’s Financial Stability Oversight Council is rich. We are to ignore that the number of banks in the U.S. has dropped from 7,600 to 5,300 in the last 10 years. The workforce percentage hasn’t been this low since 1978. GDP hasn’t risen above 3% for the last 10 years. And Dodd-Frank, the result of partisan legislative overreaction, has kept businesses off balance since its 2010 inception. Mr. Lew says that his council is responsible for “identifying and addressing risks to financial security.” There is no end to this hammer looking for a nail.

Real financial stability comes from an economy where businesses are allowed to operate day to day and plan long term with a minimum of government intrusion. The more we impose regulations to eliminate economic cycles (which are fundamental in a free market) and create soft landings, the more we are ensuring a lackluster, low-employment economy.

Carl Schieffer

Dallas

Does Mr. Lew, who was a Citigroup executive in 2008 when it required a massive taxpayer bailout, honestly expect us to believe he knows what he is doing when it comes to assessing taxpayer exposure to major financial institutions? The lunatics are running the asylum.

Joseph Bentivegna

Fairfield, Conn.

Posted on April 27, 2016, in Postings. Bookmark the permalink. Leave a comment.

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