I don't think that the problem is an under- or over-regulation of banking. The problem is that there's just too much banking.

 

In 2007, over 50% of Harvard's graduating class that got jobs after graduation got them in the financial sector... twenty percent in investment banking alone. The most popular major at Princeton's engineering school: Operations Research and Financial Engineering. Meanwhile, students who actually graduate with science degrees find work, but at considerably lower-paying jobs than their friends who go on to finance or continue school to study medicine or law.

 

Wealth isn't energy; it can be created and destroyed. And right now, the best place to go make money is to figure out new ways of moving the money around, rather than finding the next great thing to help create more of it. It strikes me as a serious problem moving forward.

 

I think this is a really good point. I wonder what the repercussions of this are.

Great article on capitalism by Jeb Bush. I wish he would throw his hat in the ring and run for President. http://online.wsj.com/article/SB10001424052970203893404577100330414585006.html?mod=googlenews_wsj

In Washington, D.C., rules are going in the opposite direction. They are exploding in reach and complexity. They are created under a cloud of uncertainty, and years after their passage nobody really knows how they will work.

 

We either can go down the road we are on, a road where the individual is allowed to succeed only so much before being punished with ruinous taxation, where commerce ignores government action at its own peril, and where the state decides how a massive share of the economy's resources should be spent.