tag:blogger.com,1999:blog-13164186.post6468506475938230809..comments2024-01-27T19:26:32.604-05:00Comments on Bubble Meter: A libertarian view of financial regulationDavidhttp://www.blogger.com/profile/11169148764438565562noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-13164186.post-79669182578968755372010-04-25T10:51:16.762-04:002010-04-25T10:51:16.762-04:00Yes, he seems to be an example of what he criticiz...Yes, he seems to be an example of what he criticizes but this is what we should expect. Those who have captured power and profit in the past will complain about the system when they are thrown out by another group. The people don't really see any change, "Meet the new boss, same as the old boss".<br /><br />I think the reason many Americans see government as ineffective is this recurring process of the capture of regulatory power and then, when the regulator fails to act, the extension of government, not buy fixing the existing system, but by adding additional, inefficient layers to the system. They don't see how this new layer of government will help, and rightfully so, if the first regulator was captured it's only a matter of time before the new one is rendered ineffective. The end result is an ineffective government-corporate system that spawns a new crisis every few years. The Democrats cry for more regulation, the Republicans scream that regulation doesn’t work and the whole crappy process continues.<br /><br />What is needed is true government reform on a regular basis, a government operating as a business, not a bloated corporation like GM but a hungry, nimble, efficient business. One that reviews itself on a regular basis and adapts as required.<br /><br />In this most recent case, the SEC (or FED, or someone) didn't do their job. Now is the time to act to build consolidated, efficient and responsible regulator. So we should<br /><br />- Fire the current management and give the job to people who can handle it. <br />- Fire dead-beat staff to inspire the remaining staff.<br />- Review and fix the law so it works.<br />- Give the new management the power and money to enforce the law.<br />- Tell the new management that if they don't do the job they'll be fired (or maybe shot). <br />- Close the smaller competing regulators and give their jobs to the SEC.<br />- Again, hold everyone responsible.<br />- Repeat every few years.<br /><br />This is the kind of “Change” I was looking for when I voted Democrat for the first time in my life.tnbhttp://www.tuesdaynightbuzz.blogspot.comnoreply@blogger.comtag:blogger.com,1999:blog-13164186.post-83569344328083951412010-04-21T10:52:06.055-04:002010-04-21T10:52:06.055-04:00A central banker with a goal of controlling all th...A central banker with a goal of controlling all the world's banks through a central world treasury (this is very actively being discussed in foreign economic news) will, of course, poo poo the existing system. This is the typical Hegelian argument -- intentionally create a problem, and then propose a solution to "fix" the created problem, in order to lead the masses to your preconceived goal.<br /><br />Central bankers are wealthy enough to get a better education than most people in the world, which is why most people will fall for this agenda and as Kissinger has stated in the past, the people will welcome the New World Order with open arms, asking for it to replace the existing system.<br /><br />Such is life. All we peons really need to care about is how to protect our wealth so it doesn't get taken away from us due to some crappy carbon credit tax.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-13164186.post-30873088924339442772010-04-21T10:19:20.792-04:002010-04-21T10:19:20.792-04:00James, I think what you're getting at is Hayek...James, I think what you're getting at is Hayek's distinction between an economy in which there is planning FOR competition and an economy in which planning REPLACES competition.<br /><br />If I understand Hayek correctly, he believes that the libertarian obsession with absolute lassiez faire is a product of the need to distill liberal (in the classical sense) economic principles into a punchline.<br /><br />There is nothing inconsistent with free market competition and regulation of the markets, as long as the regulation is consistent, predictable, and calculated to enhance the beneficial effects of competition. Hence the distinction between the rule of law (financial regulations laid out in advance and applied across the board) and an oligarchy of central planners who made post-hoc human judgements regarding what to do in the wake of a crisis.<br /><br />I submit that having a robust and properly enforced SYSTEM of regulations will reduce the temptation to empower human regulators with the task of making case-by-case judgements that, in effect, amount to a central planning of the economy by alleviating "competitors" of the consequences of their actions.Tangelo Mozilonoreply@blogger.com