by Ron Paul, Lew Rockwell:
Before the United States House of Representatives, Committee on Financial Services, Hearing on the Annual Report of the Financial Stability Oversight Council, July 25, 2012
Mr. Chairman, I welcome this hearing to receive the report of the Financial Stability Oversight Council (FSOC). The creation of FSOC underscores perfectly the complete intellectual bankruptcy underpinning the government’s behavior towards financial markets. In the opinion of government leaders, the financial crisis was not caused by misguided regulation, interest rate manipulation, or government-caused distortions to the structure of production, but by a financial sector that was completely deregulated and laissez-faire. The response of legislators, therefore, was to create a new super-regulator with vast new powers to control the financial system.
Those who truly believe that the financial sector is deregulated might want to test their hypothesis by starting their own bank without the government’s imprimatur, assuming that they are prepared to spend some time in a federal penitentiary. To say that the financial sector is deregulated could not be further from the truth. No other sector of the economy is as intertwined with the government as the financial industry.