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Thanks, Ted. This was quite interesting. One thought in reply: (quoting:) "The basic idea that had governed economic thinking for decades was that markets work. The right price will always find a buyer and a seller..."
...And thus, regulation would seem not to be useful, I take it. But I recall A. Greenspan, after all the shit hit the fan. He told Congress how surprised he was that this whole Financial Crisis happened. He trusted Markets to be efficient and self-correcting. I could not believe my ears. Such naivete from the former Fed. Chair of the most powerful country on earth. The truth is, regulations are necessary, AND need to be enforced. In the period leading up to the '08 Crash, regulators were told in one way or another, to simply look the other way. Further, since the days of the Crash, different and more thoroughgoing regulations are patently, obviously necessary. Because money is power. And power corrupts. And when so few people own and control so much, things get horribly corrupt and FUBAR in a hurry. You've heard the phrase: "It's the ECONOMY, stupid!" By the same token, my own point here can be summed up in the phrase: "Human GREED needs to be recognized, stupid!"
Comments
(quoting:) "The basic idea that had governed economic thinking for decades was that markets work. The right price will always find a buyer and a seller..."
...And thus, regulation would seem not to be useful, I take it. But I recall A. Greenspan, after all the shit hit the fan. He told Congress how surprised he was that this whole Financial Crisis happened. He trusted Markets to be efficient and self-correcting. I could not believe my ears. Such naivete from the former Fed. Chair of the most powerful country on earth. The truth is, regulations are necessary, AND need to be enforced. In the period leading up to the '08 Crash, regulators were told in one way or another, to simply look the other way. Further, since the days of the Crash, different and more thoroughgoing regulations are patently, obviously necessary. Because money is power. And power corrupts. And when so few people own and control so much, things get horribly corrupt and FUBAR in a hurry. You've heard the phrase: "It's the ECONOMY, stupid!" By the same token, my own point here can be summed up in the phrase: "Human GREED needs to be recognized, stupid!"