KVNUFTP

Second Thoughts of a Free Marketeer

Huffington Post:

Judge Richard A. Posner, a federal appeals court judge who has been called the most cited legal scholar of all time, discussed his doubts and his analysis of the current financial crisis in a wide-ranging interview with the Huffington Post.

A longtime proponent of deregulation, the idea that business works best in a free market without burdensome government regulations, Posner began to change his mind when he realized the enormity of the crisis. This change of heart inspired him to write his upcoming book, “A Failure Of Capitalism.”

Though still a believer in the virtues of capitalism, Posner now emphasizes the importance of government regulations; the need to strengthen the regulatory structure by directly funding authorities rather than the current fee-based model; the dangers of excessive executive compensation, and even expressed support for the idea of changing bankruptcy law to make it easier for homeowners who face foreclosure.

“I wouldn’t have thought the economy was as vulnerable,” he explains. “I wouldn’t have thought that banking deregulation was dangerous.”

Posner has been a career long advocate of deregulation, and one of the most oft-quoted icons of the GOP fighting the (failed) attempts in 2005/06/07 to reign in the financial markets and sub-prime lending free-for-all. Read the entire interview here.