Richard on Dodd-Frank

In the Hartford Courant, my colleague Richard Grossman discusses the recently enacted financial regulation bill. Overall, he thinks it strikes a good balance:

Reimposing Depression-era constraints on banking would be the equivalent of setting a 25 mph speed limit on I-95. The accident rate would surely fall, but cost to commuters would be enormous.

Our best hope of avoiding a recurrence of the financial turbulence of the last few years is an improved regulatory structure, which the Dodd-Frank legislation will deliver if the new regulators adopt sensible rules, combined with effective and sustainable macroeconomic policies.

Of course, that's a big if...