wages for the folks that are working but lower labor participation. people would have another option. you decide what you care about and you do something to solve that problem, that problem you care about. the trouble is that you push the balloon down in one place and it goes up in another. similarly, she made i thought a very important part. when you are trying to increase access to credit, these for-profit guys are going to do a lot of things to increase access to credit, some of which we are going to like and some which we are not going to. we have gone too far in that direction. we have to pivot back. not all good things go together. the point here is that they are separable. we are trying to get it right each time and we are always going to create new pathologies. this is philosophically
which regulations can become means by which incumbent firms rig the rules in their favor and create barriers for entrepreneurs and people that want to get in the field. both of you had responses. you wanted to say something. i think they are absolutely right. you can have good regulation and bad regulation. when you have regulators, part of the point is that the existing lobbies are going to capture regulators and do what you are talking about. the core question is, do you believe in self-regulation by market participants, which was the prevailing view ahead of 2008. that was allen greenspan s big mea culpa was about the banking sector. we thought they were really smart and held their own self-interest in high regard so they wouldn t screw up. he said, we realize that doesn t
that s the whole idea of coming up with new games to play, new processes, new products. so, when you think about what private equity does, part of the issue is in our tax code, we have a very, very strong preference for debt finance over equity finance. absolutely true. so, that s the situation where what private equity does, it s trying to allocate capital better within a firm or across firms and also trying to enhance operational efficiency by saying, hey, you have huge debt payments so it s going to discipline you. the same way folks say, if i don t make a mortgage payment, i m not going to save, i m not going to build assets otherwise. the thing we really need to make an economy grow, to make job and wage growth increases adaptive efficiency. that s not the stuff that a private equity folks do because they re doing more of this ground level combat. the problem with adaptive efficiencies, we re not going to have a lot unless you have a lot of new entrants in the economy. that s
because we are liberals, we believe in sharing here. how are we doing? the other recess appointment obviously made that got a lot less attention and i think this also points to something that i was trying to illustrate in the story at the top of the hour is, these things don t make headlines. the nlrb, a certain set. the chamber of commerce has been hammering on the nlrb and the republican primary and presidential primary field. mitt romney is running ads in south carolina against obama s handling of the nlrb. point here is this. the national labor relations board which was constituted by the wagner act, signed in the new deal, it is essentially the judicial body that oversees the
liar loans. the really ironic thing, of course, is if banks were only too happy to be lending to the kind of people that could be deceived by predatory lending practices. finally, that law is still on the books where are we in another housing bubble here? i ve always been amused. i think also in terms of what exactly the practices were that were going on during the bubble. you hear these things. here is one example, something called yield spread premium, wonky but important. krista comes in and she thinks i am trying to get you the best deal. i go and look at all these loans and i am getting a yield spread premium. deepak has a loan at 6%. i am going to charge you 7% and pocket that 1%. i am trying to get you into the best loan. you think i m acting as aph