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> It's quite likely that a completely unregulated market would not have that particular set of incentives. Given the actual history of how these regulations ca
by davidgerard 11y ago
> It's quite likely that a completely unregulated market would not have that particular set of incentives.
Given the actual history of how these regulations came about, and what things were like before and after, this statement is inane.
- maxerickson 11y agoThanks. I take it you don't think it is possible for bad regulation to mislead people? Because that's a piece of what happened in the mortgage crisis, the ratings agencies were given a license to charge fees for putting stamps on bonds, and those bonds were sold into regulated investments like insurance and pensions, investments that people trusted to be in secure assets, in large part because they were regulated. Take away the regulation and a bunch of that money is stuffed in mattresses, which while perhaps unfortunate, is obviously a better outcome than disappearing into a financial black hole.
- nosuchthing 11y agoWidespread trust seems better than widespread mistrust. Trust needs to be restored in regulators, rather than abolishing them and being left with so much uncertainty and a playing field ripe for malice.
- maxerickson 11y agoI don't think it is particularly important to restore trust to regulators, at least not compared to figuring out how to better measure the impact of regulation and make sure that it is still accomplishing whatever goal it was drafted to accomplish.