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> It was the regulators who failed us here, not the market On the contrary: the credit reporting industry is a perfect example of market failure thanks to regu
by rectang 7y ago
> It was the regulators who failed us here, not the market
On the contrary: the credit reporting industry is a perfect example of market failure thanks to regulatory capture.
The actors in the market exercise a high degree of control over the regulators. The regulators are not independent and the companies that influence them are not innocent.
All markets are constructed. The credit reporting market is just set up with rules which are grossly harmful to individuals.
- haberman 7y agoI don't think Equifax is innocent, I believe they should be liable for the damage they caused. Regulators answer to the people, it is their job to act in our interest and our job to hold them accountable to this.
- rectang 7y agoWe're mostly on the same page, but here's my quibble: you hold Equifax responsible "for the damage they caused" but not for their role in corrupting the regulatory regime. Regulators should answer to the people, but because corporations are extremely motivated, fabulously wealthy, and privileged by the court system, the people have to compete for the regulators' attentions. I think it makes sense to acknowledge that Equifax is acting against the common good, even if that's just incidental to Equifax acting in its own interests.