Regulation

Many people believe that increased regulation is needed in response to the current credit crisis. As Coyote points out the question should be asked if government could do any better. After all the OFHEO, whose only job is to monitor Fannie and Fredie, reported to congress in April that they had more than sufficient capital even under current circumstances. Oops. Oh ya, and their 68 million dollar budget, of which at least 80% must be used for auditing and monitoring, and staff of over 200 people seemed to drop the ball. I'm not totally certain but I kind of doubt that Fannies audit by Delloite and Touche cost 60 million.