Dredpiraterobts: we have an agreement! Free market capitalism is extremely efficient and brutal. Left unchecked it would either explode, implode, or both. Laws and regulations are essential, and the more complex economy the more need for vigilance.
Take the current crises: the free market got ahead of the regulators, by devising a financial derivative that was nothing that was then regulated. Essentially an insurance policy, but it was called (Orwellian) Credit Default Swap - completely unregulated.
I understand that when this came to being, during the second Clinton term, a Chicago regulator asked if there should not be some regulation of the ever growing market. She was severely rebuked by Larry Summers who was than waking for Rubin.
By the same token, reintroduction of mark-to-market rule actually triggered the explosion, as soon as the housing bubble burst.
Fun chat …
Dredpiraterobts: we have an agreement! Free market capitalism is extremely efficient and brutal. Left unchecked it would either explode, implode, or both. Laws and regulations are essential, and the more complex economy the more need for vigilance. Take the current crises: the free market got ahead of the regulators, by devising a financial derivative that was nothing that was then regulated. Essentially an insurance policy, but it was called (Orwellian) Credit Default Swap - completely unregulated. I understand that when this came to being, during the second Clinton term, a Chicago regulator asked if there should not be some regulation of the ever growing market. She was severely rebuked by Larry Summers who was than waking for Rubin. By the same token, reintroduction of mark-to-market rule actually triggered the explosion, as soon as the housing bubble burst. Fun chat …