Friday, March 13, 2009

NYS Attorney General says Regulation Encourages Growth/Competition (globeSt.

Excerpt from Incisive Media's story
by Cody Lyon


The attorney general told the mostly under-40 audience, "I’m trying to sort through the economic issues, the Wall Street issues" adding that problems first have to be exposed, then people have to believe you understand them and that justice was done with the problem.

Comparing the rapid spread of the current crisis to that of a computer virus, Cuomo stressed that competition in business has to adhere to rules and penalties, much like those in the world of sports. He charged that allowing competition to go unfettered much as it had been during the past eight years, got us where we are today.

In the rapid cadence of a sermon, Cuomo recalled a pattern where "one party gets more aggressive, it causes the other party to get more aggressive, one person pushes the edge of the envelope while the competitor has to push the edge of the same envelope" and "then you get to the place where you have 110% loan to value on a mortgage," to which he paused and asked the audience, "why?" then answered "because the housing value will always go up. Since when is that the new assumption we’ve accepted into the marketplace?"