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"In one breath the author complains that the failure of the market is due to lax regulation and corrupt officials, while in the next he calls for further deregu
by hexis 16y ago
"In one breath the author complains that the failure of the market is due to lax regulation and corrupt officials, while in the next he calls for further deregulation and less government oversight."
I think the point was that regulation and officials provide false comfort, as they will be captured by the interests they regulate. Removing those regulations and officials will at least remove the false security the "lax regulation and corrupt officials" provided.
- bluedanieru 16y agoI referenced this in my post. This spirit of deregulation has aided the revolving door culture which has grown up over the past 30 years. At any rate, I wouldn't propose disbanding a police force because it was filled with corrupt cops.
- dean 16y agoThe author isn't only talking about the regulators being corrupt or incompetent. He's also talking about market participants like Madoff and Lehman Brothers. Removing regulation will not suddenly turn the bankers into honest people, as the author seems to think. "Better than multiplying rules, financial accounting should be governed by the traditional principle that one has an affirmative duty to present the true condition fairly and accurately—not withstanding what any rule might otherwise allow." He's suggesting that we take away the regulations and just ask the bankers to be honest. Maybe I'm just cynical, but I don't think that's going to work.