The Dodd-Frank Wall Street Reform and Consumer Protection Act is taking effect more than two years after the economic crisis that prompted it. It is over 2,300 pages long, and almost all aspects of it are misdirected and offensive, starting with its portentous title, and including the improbability of its co-authors as sources of such righteous commercial meddling.
The two most offensive aspects of Dodd-Frank are that it is part of the concerted bipartisan effort of the entire political class to pretend that the economic crisis was entirely the result of private-sector greed, and that it doesn’t address at all the main discernible causes of the economic crisis of 2008, which have not gone away. The housing bubble and imprudent lending into it were the principal problem, and the principal culprit is the United States government, for legislating a substantial percentage of private-sector commercial mortgages to be on a non-commercial basis; for issuing executive orders to the giant, pseudo-private-sector Fannie Mae and Freddie Mac to make the majority of their mortgage loans on that basis; and for keeping interest rates and mortgage equity requirements so low for so long. This was certain to lead to mountains of excess residential housing and worthless mortgages.