CEI Daily Update

Issues in the News

1. BUSINESS

The House of Representatives votes on a bill limiting access to home loans.   

CEI Expert Available to Comment: Center for Entrepreneurship Director John Berlau on how the bill goes too far:

“While much about mortgage and credit issues is complex, the response to this nannyist solution is simple. We should say no to solutions that treat borrowers as children. This bill clearly goes beyond disclosure to limit options of homebuyers if the government deems them, in the bill’s words, ‘inappropriate.’ The government should punish fraud, but leave lenders and borrowers to work out what loans work best for both parties.”

2. LEGAL

A federal judge orders transportation safety officials to re-formulate federal fuel economy standards for new cars and trucks.

CEI Expert Available to Comment: General Counsel Sam Kazman on the deadly impact of the current regulations:

“The federal fuel economy program, known as CAFE (Corporate Average Fuel Economy), was originally introduced in 1975. While it has had no clear impact on overall gasoline consumption, it has forced carmakers to restrict their sales of larger cars and to downsize other models.  Since larger cars are more crashworthy than smaller cars in practically every collision mode, the result is more highway deaths.”

3. CONSUMER

The CEO of Shell Oil receives hate mail and a death threat over high gas prices.

CEI Expert Available to Comment: Senior Fellow Iain Murray on the debate over gas price gouging:

“Price gouging is generally defined as a vendor using unusual market conditions to exploit demand and extort unreasonably higher payments from his customers. Yet, outside the black market, price gouging is unlikely to exist in practice.”

Blog feature: For more news and analysis, updated throughout the day, visit CEI’s blog, Open Market.

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