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> So far, the folks who claim that it wasn't regulation-driven haven't explained why so much of the crisis happened in the most regulated and most subsidized se
by JabavuAdams 18y ago
> So far, the folks who claim that it wasn't regulation-driven haven't explained why so much of the crisis happened in the most regulated and most subsidized sectors of the economy.
De-facto trumps de-jure. If your regulators aren't actually regulating, and are in fact aiding and abetting fraud, then it's irrelevant whether the industry is supposedly highly-regulated.
- byrneseyeview 18y agoWell, not, it's actually a really important point about regulation. Given a regulator who gets to decide how Goldman Sachs behaves, who has a bigger interest in the outcome -- Goldman, getting 100% of the privatized profits, or you and me, sharing 1/300 millionth of the socialized losses? The more powerful the regulator, the bigger the incentive for regulatory capture.