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Stock market regulation stems largely from the experience of the Great Depression. So even if 99.99% of people lose all their money in lotteries we haven't see
by treis 6y ago
Stock market regulation stems largely from the experience of the Great Depression. So even if 99.99% of people lose all their money in lotteries we haven't seen an economic crisis caused by lotteries.
We're not likely to see an economic crisis due to a Gamestop short squeeze, but it is a bit of a worrying sign.
- chrisco255 6y agoAnd how much did that regulation help prevent the Great Recession and Global Financial Crisis of 2008?
- treis 6y agoThere's a pretty direct line of causation from the rollback of some regulations and lack of enforcement of others to that. That crisis was a reminder of why we have these sorts of regulations and an example of why we should enforce them.
- chrisco255 6y agoI disagree on that point. The '08 financial crisis was not so clear-cut as to trace back to one single regulation being "rolled back". And it's not clear to me, that whatever vulnerabilities existed in the system then, have somehow been patched up today. We could and still very well might have another large meltdown in the markets in the near future.