While the argument presented in this article is obviously nonsense, it is definitely not obvious that regulation is desirable. Have any of you touting regulation to 'correctly align incentives' considered how much regulation has existed already?
From the GSE's (Fannie and Freddie), the SEC, the mere existence of a central bank, to scores and scores of other existing government interventions in the economy, what we've seen in the past few decades cannot really be called free-market capitalism.
The current crisis clearly indicates that something is broken. That we have too much regulation is as plausible an explanation as that we have too little. And yet, very few people seem to even acknowledge this fact.
Comments
While the argument presented in this article is obviously nonsense, it is definitely not obvious that regulation is desirable. Have any of you touting regulation to 'correctly align incentives' considered how much regulation has existed already?
From the GSE's (Fannie and Freddie), the SEC, the mere existence of a central bank, to scores and scores of other existing government interventions in the economy, what we've seen in the past few decades cannot really be called free-market capitalism.
The current crisis clearly indicates that something is broken. That we have too much regulation is as plausible an explanation as that we have too little. And yet, very few people seem to even acknowledge this fact.