OVERHAUL WITH BIG BANG
Other states are considering similar moves to prevent the financial disenfranchisement of the poor, the young and the aged. "For deregulation to work for consumers they have to be given the right informational tools to make educated decisions. And this hasn't happened. Disclosure is quite inadequate. No doubt it would require reregulation to clear up these problems," said a lobbyist for the US Public Interest Research Group.
It used to be argued that, with the abolition of interest rate ceilings, the US savings rate, one of the lowest in the industrialized world, was sure to increase. This has not happened. Last year, personal savings reached only 4.6% of disposable income, the lowest since 1949.
There is now a proposal for the creation of an entirely new regulatory body for government securities rulemaking.
At the New York University, Sametz argued that the CFTC (Commodity Futures Trading Corporation) will have to grow teeth. "Clearly they will add more surveillance to the whole options and futures field. There has to be some bit of reregulation, some kind of greater cooperative effort with the SEC."
Under deregulation, some of the victors have found unexpected chains and restraints.