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That's why FaceBook, having became so big, should maybe be regulated a bit (like banks, like press, like transportation, etc.)
by wiz21c 9y ago
That's why FaceBook, having became so big, should maybe be regulated a bit (like banks, like press, like transportation, etc.)
- ekianjo 9y agoSorry but it does not seem like regulating banks has done much to improve the financial system. Why do you think regulations are the solution?
- GlennS 9y ago> it does not seem like regulating banks has done much to improve the financial system Are you sure? To me is looks like this: Loosening the regulations on US mortgages was a strong contributing factor to a global financial crisis. Since then, tightening regulations on global banking has led to banks being much less likely to fail and trigger another crisis.
- ekianjo 9y ago> Since then, tightening regulations on global banking has led to banks being much less likely to fail and trigger another crisis. you are in for a big surprise the next time a crisis hits the market. And even if your statement were true, only a few banks crashing would lead to a catastrophic domino effect, because everything is very largely inter-connected. What we have done since 2008 is largely insufficient to consider the current financial system as robust.
- chopin 9y agoRegarding banks, non-regulation isn't a solution either, though.
- ekianjo 9y agoI don't think we have even tried non-regulating the banks for several centuries or even more. Bank regulations have a very, very long history.
- ameister14 9y agoWell, as far as serious regulatory controls are concerned, we tried going without between 1830 and 1914 in the US; so 103 years ago.
- deleted 9y ago[deleted]
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- codecamper 9y agoAlso, regulation doesn't magically fix the problem. But good regulation will fix the problem. The goal is to come up with the right regulation. With regards to financial regulation, I think transparency and data reporting are hugely important. Much regulation can be done by counterparties if they can have better transparency.
- privateprofile 9y agoRegulation isn't binary, as in something is either "regulated" or "unregulated". The quality, timeliness and enforcement of the laws that establish regulation will determine the outcome. Current regulation is weak, but society is better off with it than it was without it. A brief look at the history of the US financial system and its "crashes" may shed some light over this, perhaps even demonstrating that, if anything, regulation needs to improve (both in terms of coverage and enforcing).
- ameister14 9y agoI don't know how much you know about the history of the financial system, but it appears not to be a lot if you don't think regulating banks has improved it.