In a case of shutting the barn door after the horses have already fled, President Bush declared that in signing the new accounting reform bill that “the era of low standards and false profits is over.” The markets have punished the offenders and are rooting out any other potential disasters. Of course, the President and Congress both feel the need to act — to do something — and more importantly, to appear as though they are doing something.

Question of the week: can anyone come up with an example of the federal government being proactive? That is, recognizing the possibility of a problem, legislating, and then being proven right/have the legislation prevent the problem? I’d love to hear one.