…send not to know
For whom the bell tolls,
It tolls for thee.
– John Donne

Finance Overhaul Casts Long Shadow on the Plains

So…you think that the recently passed financial reform bill is going to righteously stick it to those high-rollin’ Wall Street finance dudes? Not likely.

The impact may hit a lot closer to home than you might have thought:

Farmer Jim Kreutz uses derivatives to soften the blow should the price of feed corn drop before harvest. His brother-in-law, feedlot owner Jon Reeson, turns to them to hedge the price of his steer. The local farmers’ co-op uses derivatives to finance fixed-price diesel for truckers who carry cattle to slaughter. And the packing plant employs derivatives to stabilize costs from natural gas to foreign currencies.

Far from Wall Street, President Barack Obama’s financial regulatory overhaul, which may pass Congress as early as Thursday, will leave tracks across the wide-open landscape of American industry.

Designed to fix problems that helped cause the financial crisis, the bill will touch storefront check cashiers, city governments, small manufacturers, home buyers and credit bureaus, attesting to the sweeping nature of the legislation, the broadest revamp of finance rules since the 1930s.

Historically, the more that government gets involved in the market, the worse things get. (Remember, most of the the alleged negative effects of the free market are really the product of business and/or regulatory arrangements that have hindered the free market’s operation.)

I get a bad feeling about this one.