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Unfortunaely the draw for many isn't that they want a libertarian dream society with no rules, but rather they think they can get rich quick. The "banks are bad

Unfortunaely the draw for many isn't that they want a libertarian dream society with no rules, but rather they think they can get rich quick. The "banks are bad" is part of the appeal also. I have a cousin who works in the food service industry (think something like managing a Chipotle) and has put all his liquid assets into crypto and still thinks they will "pay off so he can retire". As for banks - as soon as these crypto scams fail, everyone will find out just why the SEC and FDIC are there. They were not created just because some politician had an idea for more bureaucracy.

no_wizard 4y ago
My "hot take" if you will: SEC and FDIC aren't usually, to the general public, negatively seen due to their mission. Its the fact they don't prevent criminal / unethical behaviors beforehand, and banks get away with alot before anyone intervenes. I actually don't think the average US citizen is "anti regulation" with this. I think - and I include myself in this - that we see agencies like the SEC (more so than the FDIC) don't act fast enough or often enough, and when they do, the fines are a slap on the wrist vs the profit made by the bad behavior. In a nutshell, they just aren't acting effectively, and thats why they get a bad wrap.
- sooheon 4y ago
  Yeah, people like effective regulation, it's just regulatory capture is worse than no regulation.
- tl 4y ago
  > Its the fact they don't prevent criminal / unethical behaviors beforehand, and banks get away with alot before anyone intervenes. A better example is the IRS with a double standard of overzealous enforcement against individuals and small business who cannot defend themselves and complete non-enforcement against higher tiers of wealthy. In the case of the SEC or FDIC, this has resulted in the near elimination of smaller fish aside from protective carveouts like the Durbin Exempt Interchange.
codyb 4y ago
Unfortunately for your cousin, he's the bag holder that the people getting rich quick are going to take for a ride. As far as I can tell.
- fred_is_fred 4y ago
  yes - he absolutely is. I'm not sure he knows that though.

no_wizard 4y ago

My "hot take" if you will: SEC and FDIC aren't usually, to the general public, negatively seen due to their mission. Its the fact they don't prevent criminal / unethical behaviors beforehand, and banks get away with alot before anyone intervenes. I actually don't think the average US citizen is "anti regulation" with this. I think - and I include myself in this - that we see agencies like the SEC (more so than the FDIC) don't act fast enough or often enough, and when they do, the fines are a slap on the wrist vs the profit made by the bad behavior. In a nutshell, they just aren't acting effectively, and thats why they get a bad wrap.

sooheon 4y ago
Yeah, people like effective regulation, it's just regulatory capture is worse than no regulation.
tl 4y ago
> Its the fact they don't prevent criminal / unethical behaviors beforehand, and banks get away with alot before anyone intervenes. A better example is the IRS with a double standard of overzealous enforcement against individuals and small business who cannot defend themselves and complete non-enforcement against higher tiers of wealthy. In the case of the SEC or FDIC, this has resulted in the near elimination of smaller fish aside from protective carveouts like the Durbin Exempt Interchange.

codyb 4y ago

Unfortunately for your cousin, he's the bag holder that the people getting rich quick are going to take for a ride. As far as I can tell.

fred_is_fred 4y ago
yes - he absolutely is. I'm not sure he knows that though.