Quote:
Originally Posted by roachboy
apparently, the gao doesn't buy this la-la markets will fix themselves nonsense.
|
If you want to mis-characterize a position and then call it nonsense you will not get a reasonable exchange.
I don't know anyone who suggests that there are not problems with "free markets" (as if you could actually find one). There are risks is "free markets" and there are risks in highly regulated markets.
Quote:
here's the report of high risk areas released yesterday:
http://www.gao.gov/new.items/d09271.pdf
it takes you straight to the full report. the section on outmoded american regulation of the financial sector is pp. 13-19.
it simply outlines the problem, pointing to it's magnitude, without making specific policy recommendations.
but the central arguments are:
a) financial sector activity has not, cannot and should not be unregulated.
b) a regulatory framework that is hopelessly outdated is no better than no regulation.
c) the current regulatory framework is in no way adequate.
to address this, the most basic requirement is the rejection of neoliberal economic ideology out of hand.
but read it for yourself.
99 ppg. of fun.
|
Here is a quote from page 14:
Quote:
|
As a result of significant market developments that, in recent decades have outpaced a fragmented and outdated regulatory structure, significant reforms to the U.S. regulatory system are critically and urgently needed.
|
What this is basically saying is that the market moves/develops/reacts/grows/changes/etc. much faster than regulators can. Basically we have trillions and trillions of financial transaction, we have some of the most highly educated and creative people trying to profit in the system and we have a handful of legislators and bureaucrats in Washington trying to control it, and them actually thinking they can. If anything is nonsense, that is. Oh, and they think it is a risk, I didn't need their report to figure that out. I noticed they offered no solutions to manage the risk.