In the short term, yes, it means some fools* will be hurt by some frauds. Keep in mind, however, that no amount of regulation will prevent Madoff's greed, for example, and the foolishness of those who blindly trusted him.
In the long term, we will be training people to be better and more diligent actors.
If you can determine the guilty party in the case of frauds, you can still report them to the police. This is enough protection.
* I mean fools in the larger sense of acting without diligence. Every one of us has been such a fool at one time or another, and learned painfully from the experience.
Comments
In the short term, yes, it means some fools* will be hurt by some frauds. Keep in mind, however, that no amount of regulation will prevent Madoff's greed, for example, and the foolishness of those who blindly trusted him.
In the long term, we will be training people to be better and more diligent actors.
If you can determine the guilty party in the case of frauds, you can still report them to the police. This is enough protection.
* I mean fools in the larger sense of acting without diligence. Every one of us has been such a fool at one time or another, and learned painfully from the experience.