ANOTHER new agency… but this one has teeth

The Wall Street Journal reports about the new “Consumer Financial Protection Agency,” a bit of bureaucracy with a brilliantly Orwellian name and troubling powers:

Not only would the agency have the authority to write rules and require better disclosure, but it would also have the teeth to enforce its mandates. The agency, for example, would be able to ban financial products it deems overly risky…

Firms may have to put “warning labels” on their alternative products and require applicants to fill out financial-experience questionnaires, according to the administration.

In other words, government is going to once again cause more problems than it solves with new regulations, fallaciously assuming that it knows better than the market and adding yet another layer of expensive red tape to make the federal budget even more ridiculous and our economy even more sluggish.

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