Financial Markets

Treasury Secretary Paulson in a briefing at the White House moments ago expressed relief and, more significantly, satisfaction that the private sector has come together to take over or bolster the failing financial institutions. Private commercial solutions would, I expect, relieve the federal government from direct intervention. Yet, it also appears to me that we are merely allowing bigger, more powerful profit-driven entities unregulated growth.

President Bush should immediately assemble an advisory panel consisting of non-partisan experts from a broad range of financial disciplines to review the current "corrective" efforts in the market and advise on immediate regulatory approaches. His Office and his administration, standing alone, have neither the confidence of the American people nor of the international community. Congress will take a long term view in the not distant future but by the time new books of regulations and new federal agencies are approved Congress will be able to merely massage rather than tame the beast.