FINANCIAL REFORM MAY BE PUSHED BACK - AT 8:25 A.M. ET:  One effect of the huge health-care debate is to push back financial reform, as The Politico notes:

As the congressional summer recess winds to a close, the debate over health care reform continues to rage hotter than when lawmakers left town. And that could seriously complicate Democratic hopes for revamping the nation’s financial regulations this fall.

Not only does the continued turmoil on health care threaten to burn up all of the bandwidth and floor time on Capitol Hill, but the outcome of the debate could also dictate the success of the regulatory rewrite, analysts say.

What’s more, the political landscape for regulatory reform could shift drastically before the major work gets under way this fall — again, partly because of the dominance of health care reform.

COMMENT:  Now, some conservatives might rejoice in this, but they shouldn't.  Remember that some kind of regulation over commerce is part of the Constitution.  We have regulation.  The issue is how wise each proposal is, how restrictive of economic freedom, and how effective in curing an outrage that Congress should be curing. 

Face it, parts of the financial system failed in the last few years.  The result has been catastrophic.  The idea that Congress can be benign on this is absurd.  Many Republicans voted, for example, for changes in credit-card laws earlier this year because they saw a compelling need (and an angry electorate).  Leftist extremists want to muzzle the whole system because of their contempt for capitalism.  Rightist extremists want to keep their head in the sand while mumbling about the greatness of free enterprise.  The thoughtful center, led, I hope, by people who understand that true free enterprise has been the greatest engine of economic progress in history, want to solve problems where they exist, to protect the American people against predatory and corrupt practices, while letting the system do its job.

September 1, 2009