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No, but Madoff went to jail, Corzine narrowly avoided it, and MF Global is out of business. Governments can't prevent crime, but they do punish it. The distinc
by cwp 13y ago
No, but Madoff went to jail, Corzine narrowly avoided it, and MF Global is out of business. Governments can't prevent crime, but they do punish it.
The distinction here isn't inflation vs deflation, but flexible policy set by current leaders according to circumstances vs rigid policy set by past leaders according to ideology.
- yummyfajitas 13y agoI still don't understand - what does a leader-based monetary policy vs a rule-based monetary policy have to do with businesses going insolvent? If the US adopted some rule-based monetary policy (e.g. NGDP targeting or just plain old "don't print more money"), would Goldman suddenly collapse like Mt. Gox? I can see why external regulators ensuring Mt. Gox's solvency (or various blockchain based surveillance mechanisms proposed by a number of people) might have helped this situation, but that has little to do with a central bank altering interest rates and purchasing assets to tweak the money supply. I just don't understand the connection between monetary policy and fraud prevention/bad accounting/etc. Explain like I'm a 5 year old child.
- BryanBigs 13y agoMF Global is out of business because Corzine mismanaged it, and the guy wasn't even banned from the industry for stealing $800m. Hardly an example of government punishing anything. More an example of a peer of current leaders getting off.