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You have a weird assumption here that somehow if there were less regulations the banks would somehow have less of a monopoly on the mechanisms of monetary polic
by aalleavitch 9y ago
You have a weird assumption here that somehow if there were less regulations the banks would somehow have less of a monopoly on the mechanisms of monetary policy. That's not how it works, not in theory or practice.
- garmaine 9y agoIf there were less regulations you wouldn’t need to be a bank to do what a bank does. That was my point. Why so t we see the level of innovation we have in web in the financial sector? Operating a fintech company requires as much legal compliance as it does code and this protects incumbents and lets them extract rent from our society. The GP seems to be saying “let’s regulate these rent seekers.” I’m saying “let’s stop paying rents in the first place.”
- roenxi 9y agoIt is a weird, but entirely correct, assumption that all markets operate in a legal framework and are thus regulated. What does 'more banking regulation' or 'less banking regulation' even mean? If the government enacts 'more' legislation that ossifies the practices from before financial crisis, that clearly cannot be an improvement. Talking about more or less regulation is just setting the government up to be manipulated by the highest bidder, who can specify what changes in a way that looks like 'more' or 'less' of something. The rules need to be changed to promote honesty and not create perverse incentives. This requires /different/ regulation, and to demand specific changes. Nobody agrees on what those changes should be afaik.
- garmaine 9y ago> It is a weird, but entirely correct, assumption that all markets operate in a legal framework and are thus regulated. I’m not sure what you’re saying here. Counter pint: drug markets.