4 ms·

I don't know if you've been reading any news, but too much regulation is not the issue here. There are something like a few hundred SEC employees to investigate

I don't know if you've been reading any news, but too much regulation is not the issue here. There are something like a few hundred SEC employees to investigate the entire banking sector. In addition we have evidence of overt sycophancy in the New York Fed and a general refusal to correct bad behavior (see Carmen Segarra). Finally, the pattern of laws has been deregulatory, not vice versa. Enron was able to engage in fraudulent trade in energy derivatives because the derivatives market was deregulated. I don't know where you are getting this story (ideology, I suspect), but it is deeply wrong.

raverbashing 11y ago
Apparently you missed the part where I said "Some regulation of course is needed", which is not surprising given your shallow interpretation of facts Over regulation is a problem exactly because it builds too big to fail corporations. It eliminates competition due to regulatory capture "Enron was able to engage in fraudulent trade in energy derivatives because the derivatives market was deregulated." Fraud is fraud. > I don't know where you are getting this story (ideology, I suspect) Yes, my ideology is opposed to having idiot bureaucrats stifling progress while regulatory capturing incumbents to their friends. See: Tesla vs. Car dealerships, Uber vs. taxi monopolies, this: http://www.motherjones.com/kevin-drum/2013/10/heres-why-your-asthma-inhaler-costs-so-damn-much http://www.motherjones.com/kevin-drum/2013/10/heres-why-your...
- astazangasta 11y ago
  >Fraud is fraud. Yes, and lack of regulatory oversight (i.e., law enforcement) produces fraud. We saw this with Enron and later with Countrywide, AIG et al. The line seems pretty clear to me - we deregulated the derivatives market (via the CFMA), Enron makes use of the lack of oversight to perpetuate fraud. >Over regulation is a problem exactly because it builds too big to fail corporations. It eliminates competition due to regulatory capture You'll have to spell this out for me, because I just can't see it. Regulatory capture is not "over regulation", it is the opposite, at least in the case of finance - it is the regulatory apparatus failing to do what it should (regulate) because the power lies in those being regulated (e.g. the NY Fed's kowtowing to Goldman).
  - raverbashing 11y ago
    > You'll have to spell this out for me, because I just can't see it http://en.wikipedia.org/wiki/Regulatory_capture http://en.wikipedia.org/wiki/Regulatory_capture
    - astazangasta 11y ago
      Could you give a real explanation? Obviously I can look this up on Wikipedia myself (and my understanding is more sophisticated than that). I want to understand why you think too much regulation caused TBTF.

raverbashing 11y ago

Apparently you missed the part where I said "Some regulation of course is needed", which is not surprising given your shallow interpretation of facts Over regulation is a problem exactly because it builds too big to fail corporations. It eliminates competition due to regulatory capture "Enron was able to engage in fraudulent trade in energy derivatives because the derivatives market was deregulated." Fraud is fraud. > I don't know where you are getting this story (ideology, I suspect) Yes, my ideology is opposed to having idiot bureaucrats stifling progress while regulatory capturing incumbents to their friends. See: Tesla vs. Car dealerships, Uber vs. taxi monopolies, this: http://www.motherjones.com/kevin-drum/2013/10/heres-why-your-asthma-inhaler-costs-so-damn-much http://www.motherjones.com/kevin-drum/2013/10/heres-why-your...

astazangasta 11y ago
>Fraud is fraud. Yes, and lack of regulatory oversight (i.e., law enforcement) produces fraud. We saw this with Enron and later with Countrywide, AIG et al. The line seems pretty clear to me - we deregulated the derivatives market (via the CFMA), Enron makes use of the lack of oversight to perpetuate fraud. >Over regulation is a problem exactly because it builds too big to fail corporations. It eliminates competition due to regulatory capture You'll have to spell this out for me, because I just can't see it. Regulatory capture is not "over regulation", it is the opposite, at least in the case of finance - it is the regulatory apparatus failing to do what it should (regulate) because the power lies in those being regulated (e.g. the NY Fed's kowtowing to Goldman).
- raverbashing 11y ago
  > You'll have to spell this out for me, because I just can't see it http://en.wikipedia.org/wiki/Regulatory_capture http://en.wikipedia.org/wiki/Regulatory_capture
  - astazangasta 11y ago
    Could you give a real explanation? Obviously I can look this up on Wikipedia myself (and my understanding is more sophisticated than that). I want to understand why you think too much regulation caused TBTF.