Right but the baseline regulatory function actually increases costs and prices. Extractive firms love these regulations because they create rents (i.e. law). Th

Right but the baseline regulatory function actually increases costs and prices. Extractive firms love these regulations because they create rents (i.e. law). The irony is too much. And the problem with Wirecard is that people don't ask what would have happened otherwise. Wirecard had the govt suing people for them (basic regulatory function I suppose? lol). The point of markets isn't that the price is always right but that by creating a venue for people to disagree, you get an efficient outcome in the end. Fund managers who owned the stock get rinsed and will probably not get more capital. Fund manager who shorted the stock got more capital. Btw, the reason why Wirecard didn't blow up instantly was the govt. Regulators are tasked with a limited set of functions. They choose not to perform them. The failure wasn't the market, it was regulation (the fraud itself was ludicrously childish, it is the kind of thing you see in China).