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Old 09-22-2008, 11:25 AM   #117
badnarik
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Quote:
Originally Posted by Slava View Post
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.
Isn't the market inefficiency caused by the moral hazards that others have mentioned?
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