A Most Egregious Example of Agency Capture

Is Secretary Paulson. If agency heads don't come from the industries they regulate, where are they supposed to come from? From the lower ranks of the regulating body.

Everyone has an interest against agency capture except the capturers. But who in the special interest group world will look out for it? Only one has proven effective - unions.

A must read from Krugman:
http://tpmcafe.talkingpointsmemo.com/2008/11/22/why_were_rescuing_wall_street/

Nonetheless, Citi is about to be bailed out while GM is allowed to languish. That's because Wall Street's self-serving view of the unique role of financial institutions is mirrored in the two agencies that run the American economy -- the Treasury and the Fed. Their job, as they see it, is to keep the financial economy "sound," by which they mean keeping Wall Street's own investors and creditors reasonably happy.