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Forum Post: Deeper than usual thoughts on regulation

Posted 10 years ago on Dec. 8, 2011, 4:37 a.m. EST by FreedomIsFree (340)
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What I never understand is why the incredible corruption is blamed on sleepy regulators with too few regulatory tools at their disposal. If only there were more regulators and regulations, we'd finally get that "free market" we're pining for, right?

Get government out of the economy. It's not possible to have free markets and government regulators just like it's not possible to have your cake and eat it too. reply

Wed, 12/07/2011 - 23:41 | 1957298 Tyler Durden

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It is not about regulation. What it is about is perverting the incentives of risk and reward. If failure is an option, there is no need for regulation. If failure is impossible, such as now, regulators merely aid and abet the death of pure capitalism.

But you are right: the less intervention, the purer the capital markets. Unfortunately, for a rent-seeking behemoth of a government (such as the one we have now which issued $100 billion in debt every two weeks), the only stable source of under the table revenue (read "lobby" or bribes) is the financial regime.

Which also is the government's handy scapegoat when things turn rough.

It is not Wall Street's fault government has become a monster, and more importantly, a monster which the people have let usurp all power in exchange for promises of (insolvent) welfare payments and mind numbing primetime TV.

What OccupyWallStreet and the rest have to realize is that while Wall Street is a symptom of all that is broken and flawed in modern society the cause, the real cause, is us.

But it is always easiest to point fingers... reply

Wed, 12/07/2011 - 23:55 | 1957328 High Plains Drifter

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yes it is our fault. the buck stops here as they say. we fell asleep on the walls of the city and the enemy walked in. we are responsible. citizenship is a terrible burden , one that most amerikans do not wish to carry......when good men remain silent, evil flourishes. we see now in the high places incarnate evil. evil men flourish and do what they want. now they won't listen to us anymore. there is no redress of grievances. none. they do what they want when they want. so it is. so it has been and so it will be..... reply

Thu, 12/08/2011 - 00:32 | 1957414 Mr Lennon Hendrix

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It is more than that. We are cheering the evil man on as he destroys our city. We are mad. Mad on Fluoride, meth, and soda pop. We got high off of the Pusherman's delivery, and we are addicted to the madness. There is nowhere else to run, so now we laugh and laugh our balls off.

More at http://www.zerohedge.com/news/why-uk-trail-mf-global-collapse-may-have-apocalyptic-consequences-eurozone-canadian-banks-jeffe



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[-] 1 points by Steve15 (385) 10 years ago

If you want to know how deregulation would work just look at post Civil War America. Research the early industrial revolution and wage slaves. Look at China.

[-] 1 points by FreedomIsFree (340) 10 years ago

What would these tell me about regulation in this country today? You're hinting at something that I'm not getting.

[-] 1 points by Steve15 (385) 10 years ago

What I'm saying is we have a problem with regulation but not like you think. The free market failed miserably in the late 1800's. That's history you won't learn in school or from a billion dollar news channel. Today directly correlates with our history. I don't have time to give you details now, I have an early day tomorrow and you may not welcome my insight anyway. If you are open minded and would like me to elaborate let me know and I will reply in length with references.

[-] 1 points by FreedomIsFree (340) 10 years ago

You're right, I probably wouldn't be able to reconcile late 1800's with today in my mind. That was pre- so many things, that I think it'd be approaching mootness.

The financial system, especially with the onset of information technologies that were undreamed of at the time, bears little resemblance to today.

How do we fight regulatory capture, and lobbyist-written loopholes, and the revolving door between between bankers, regulators, etc.?

Where can we find regulation that is working as designed within the financial sector?

[-] 1 points by Steve15 (385) 10 years ago

Oh! We agree. I didn't realize we are on the same page. No need for further discussion. But, don't sell our history short.

[-] 1 points by hyarborough (121) 10 years ago

Regulation is a necessary tool to achieve stability in any process. You can see millions of examples all around you. It's implemented in every industrial process and electronic control. W/o out it you get wildly fluctuating parameters, similar to the bad old "boom and bust" days.

[-] 1 points by FreedomIsFree (340) 10 years ago

So these aren't boom and bust days?

[-] 2 points by hyarborough (121) 10 years ago

I think we may indeed have returned to the boom and bust days by removing too many regulations. In those days, if you were smart and had enough assets you could comfortably get through the "bust", and even make money, while everyone else went broke.

I think it may be possible to weather the bust times, even if you're in the lower part of the economic spectrum if you have a place to stay, healthcare, food, water and energy. Albeit at a lower than normal standard of living.

You can supply most of your own food and energy. Collect a fair percentage of water. Use preventative methods to maintain health, and grow a portion of your medicinals, and collect most to all of your energy needs. Some of this WILL require cutting back on usage though.

I currently grow my own vegetables, meat, and simple medicinals (antibacterials, antifungals, analgesics etc). I'm also actively working on reducing my energy needs, and collecting as much as possible in the form of solar. Still need some cash flow though, and major medical.