> the result is a very, very healthy investment economy in the US. There were some recent examples of this system creating perverse incentives for US investmen

> the result is a very, very healthy investment economy in the US. There were some recent examples of this system creating perverse incentives for US investments that are worth considering. For instance, the repackaging of mortgage-backed securities in the 2007 financial crisis took advantage of multiple transfers to place all risks on consumers and allow brokers to evade nearly all risk. I think that we need to think very carefully about what risks we protect against (and how) to avoid situations where middle-men capture down-side protections as alpha and gain an incentive to seek out investments that are priced lower because they will often fail. A model that imagines an investment market where the only two parties are the investment originator and the final owner are too simplistic now.