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On the other hand, there is a much greater incentive to improve regulations (eg, to separate retail banking activities) than to trust incompetents with your mon
by mercurial 13y ago
On the other hand, there is a much greater incentive to improve regulations (eg, to separate retail banking activities) than to trust incompetents with your money, especially when you consider that the central actor also provides essential infrastructures such as an education system, roads, public safety and social welfare. You don't want the clowns running Mt Gox to design the next plane you're going to take.
- icebraining 13y agoI'm not sure if you're using the word "incentive" to mean the same thing as I am. You don't want the clowns running Mt Gox to design the next plane you're going to take. Nobody wants that; the question is why, considering the history of the financial system since the US central bank was created (the Great Depression, the S&L crisis, the 2008 crisis, Maddoff, Enron, etc), what makes you think that having a centralized regulatory body avoids that problem?
- mercurial 13y agoIt's a good question, and it's impossible to answer with historical examples of well-developed capitalist countries without a central bank.