3 ms·

I actually sympathize with Geithner. You have to look at Geithner's approach from a system design point of view. All things being equal, financial instruments

• anamax 18y ago
  > As other areas of the financial system become more regulated, he has to be mindful of the money will just flow to unregulated areas. Presumably he believes that the sole justification of regulation is to produce more benefits than costs for some respectable definition of "benefits" and "costs". One of the costs is that money goes somewhere else. If he's applying regulation to areas where the regulation does not produce more benefits than costs, where the "benefit" is "it reduces the costs of regulation in other areas", I think that we've wandered into no-respectable benefits and costs.