President Bush offered a comprehensive defense of capitalism and the American financial system in a speech in New York today, in the run-up to a weekend meeting of the Group of 20 nations that is likely to feature tough criticisms of the U.S.
Citing “outdated regulatory structures” in the U.S. and elsewhere, Mr. Bush said that “reforms in the financial sector are essential,” and offered a series of specific responses, including:
- Making financial markets more transparent, including improved accounting rules for securities so investors can better understand what they’re buying.
- Proper regulation of sophisticated financial products. That includes processing of credit default swaps — which insure investors against potential losses — through centralized clearinghouses rather than through unregulated over-the-counter markets.
- Enhanced national regulation of financial markets around the world.
- Better coordination of national laws and regulations, as well as reform of the International Monetary Fund and World Bank, which are viewed by many critics as unfairly dominated by industrialized countries of Europe and North America.
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Nov. 13 (Bloomberg) — PresidentGeorge W. Bush today urged leaders of the world’s biggest economies not to abandon free- market capitalism as they seek an escape from the financial crisis, calling it the “best system” for delivering growth.
In a speech at the Manhattan Institute in New York before weekend talks among leaders from the Group of 20 nations, Bush said policy makers should resist the urge to meddle too much in markets as they seek to reverse the financial and economic turmoil now engulfing the world.
“History has shown that the greater threat to economic prosperity is not too little government involvement in the market, but too much,” Bush said. “Our aim should not be more government, it should be smarter government.”
Stock Market Since Dems Took Control of Office
Stock Market Since Dems Took Control Of Congress
