[FoRK] The Wrecking Crew - A Low, Dishonest Decade
wgstoddard at gmail.com
Wed Jan 20 12:34:03 PST 2010
On 1/20/10 3:01 PM, Bill Stoddard wrote:
> On 1/19/10 9:45 PM, Jeff Bone wrote:
>> So, final conclusions: *government* regulation and moral hazard are
>> two sides of the same coin, and that has to be managed very carefully
>> by policy makers and would-be regulators. There's a role for the
>> government regulation, but beware the possible moral hazards that
>> usually go along with it (and other unintended consequences as
>> well.) And --- self-regulation via social norms, peer pressure,
>> clearly articulated ethics and practices, and self-interest *can*
>> (but do not always, or even necessarily usually) accomplish the same
>> desired goals that progressives might seek (but often fail to
>> achieve) through greater, coercive government regulation; cf. the
>> FX market as existence proof.
> Correct, but completely useless, conclusion.
> Government regulation is a simple fact of life.
So how do you feel about regulation to limit the amount of leverage a
bank can utilize to, maybe 10x? Leverage is the money machine for
financial firms so I would expect the ibanks to kick and scream. If a
bunch of noble prize winning smart guys can't get it right, thwn
putting a low limit on leverage seems to be most prudent. You agree?
Just out of curiosity, Jeff, what do you think about cap-n-trade? Good
idea or no? (my opinion, it needs to be shot on site. REALLLLLY bad idea.)
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