Quote:
Originally Posted by Ronald Pagan
I should state that I am VERY skeptical of the benefits that increased regulation will have. In the medium-term new regulations will only make markets more inefficient. Besides, you cannot possibly hope to regulate financial markets effectively. The brilliant people that work them are so much further ahead than government regulators that the regulations will create a mere blip to avoiding this type of behavior. You cannot regulated greed, thankfully greed is what makes the markets tick and diverts capital to its most productive uses.
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Well I suppose its a matter of opinion, but regulation is exactly whats needed here. Part of the entire issue here has been the ability to market these investments as being less risky and more certain than they really are. That is blatant fraud, and not the intent of how the markets are supposed to work!
Secondly, there is a school of thought including some brilliant minds that point to the fact that the market is in this predicament as the evidence that the markets are not efficient and must be regulated. Its not a question of regulating greed, but instead a point of stopping fraud.
Your point above about the cheaters being ahead of the regulators just doesn't apply here. We're not talking about doping in sport where its a hidden entity.