The Obama administration wants to regulate venture capital firms to prevent systemic risks. Silicon Valley residents are scratching their heads and asking: What risks? The rest of us should ask why Washington is targeting a jewel of the American economy that had nothing to do with the housing bubble.What's next? Are your credit card purchases going to threaten financial stability and therefore be subject to regulation?
Thursday, April 9, 2009
Well, one had to wonder how long it would take before the Obama administration would meander off the path to inject its fingers where they did not belong. As with all things in this administration, they moved quickly. This Wall Street Journal editorial points to some serious issues related to regulatory overreach. The opening line says it all: