Dear readers, could someone explain to us what in the world Columbia University President Lee Bolinger is talking about? Thanks in advance.
Bloomberg: An independent regulator modelled on the judicial system should issue written rulings and “if it’s wrong, go back and change the precedent,” said Bollinger, a constitutional scholar and one of three Federal Reserve Bank of New York directors representing the public, in an interview yesterday. Bollinger, 63, who has led Columbia since 2002 and served on the New York Fed’s board since 2006, called the economic crisis a “huge failure of public regulation.”
The U.S. shouldn’t rely on Congress or “the people who are engaged in the economic act to say, ‘Stop, we’re taking too much risk,'” Bollinger said. The Federal Reserve may be the right body in government to “stand outside the system” as an independent regulator, he said. In the same way that the U.S. Constitution’s First Amendment protects free speech against censorship during wartime, a “First Amendment for the economy” could correct regulatory failure, he said.
(You can try reading that last line over and over again, but we’re pretty sure it won’t make any more sense than it did the first time.)
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