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A New Post on Regulation

Original post made by stephen levy, University South, on Oct 17, 2008

I am setting up a separate post for the folks on Ask the Economist thread who wish to debate issues regarding federal financial regulation and who is to blame for recent financial market turmoil.

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Comments (10)

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Posted by Commodities Futures
a resident of Another Palo Alto neighborhood
on Oct 18, 2008 at 8:59 am

How should the unregulated instruments in the Commodities Futures Modernization Act of 2000 be regulated? Should part of the Shad-Johnson Accord be restored?

What is your proposal for merging the existing regulatory agencies?

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Posted by R Wray
a resident of Palo Verde
on Oct 18, 2008 at 9:23 am

I think you should post this question in the Ask the Economist thread.
The answer, however, is clear. There should be no regulation. Government force always distorts the markets and causes chaos. Regulations always have effects that lead to more regulations. As I recall, there are 80,000 pages of business regulations now.
But most important, force in the market violates individual rights.

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Posted by Respectfully to Mr. Levy
a resident of Midtown
on Oct 18, 2008 at 9:27 am

Mr. Levy, those who don't learn from history are doomed to repeat it.

It isn't so much about blame, it is about the ideology and systems to support an idealolgy that led to the current meltdown.

If we keep with the ideology, we will be doomed to having more meltdowns for the same reason.

This is the root of any economic discussion we can have about "fixing" the mess.

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Posted by Wrong Perspective
a resident of another community
on Oct 18, 2008 at 11:21 am

I am writing to whine about the abusive free press run by the Weekly. In two recent posts on Ask the Economist Perspective wrote

Until Dems take over, we still have a free press and his sidekick Seriously Awry wrote

Government is the source of physical is backed by guns

Clearly we have a case for regulation of free press as these posts may influence two people to vote Republican and drop the Democratic vote majority in CA to under 2 million.

Moreover, with 17 other threads on which to joust about the election it is clearly an abuse of free press to allow this one.

Here on Krypton we are excited about the prospect of our son Kal-El "Stevie" Obama to win the presidency and want to remind readers of his strong position on regulation which is the title of this post.

In the pro-Krypton city of San Francisco not so long ago, he warned of the perils of gun deregulation and effectively refuted (Wrong) Perspective by noting that guns, far from being the force of government, were the refuge of depressed working folks in pro-American enclaves who were clinging to their guns after being unemployed by eight years of failed deregulation policies.

A clearer case for regulation could not be made.

To respectfully to Mr Levy, I am sure he appreciates your response since he clearly prefers an uninteresting thread frequented only by serious people, but gimme a break, no one seriously believes Town Sqaure is for serious debate.

I mean, like look at most of the recent posts.

As for lonely Ohlone, being right all the time is no excuse for being civil to these liberinearian facilists you are talking with. After all what is a free press for if you can't a socialist who pals around with terrorists for what he is.

Finally, although Kal-el tried to explain his name at the Diocese dinner on Thursday night KNN Fact Check gave him a seriously incomplete.

While Steve in Swahili and Krypton talk does mean "the one", the literal translation is "the one...who makes the most sense".

And as my sainted grandmother Nana-el used to say "what's to worry about a little regulation, it's only the bad dudes (and dudesses) who's gonna get regulated.

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Posted by Eddie the Electrician
a resident of Atherton
on Oct 18, 2008 at 1:21 pm

I think Wrong Perspective is on to something.

I read this morning that the socialist Chicago Tribune and papers in socialist pro-Kryton states of Colorado (Denver Post) and Florida (Miami Herald) have just endorsed the Irish dude O'bama.

And this whole tax thing makes me think someone should get McCain to "regulate" his mouth. For most people the major federal tax they pay is the payroll tax. Maybe McOut of Touch thinks the payroll tax is unimportant because it is no big deal for all of his "my friends" but to most of my friends getting a break for the payroll taxes they pay IS a big deal and not welfare.

I make more than $250K (heck, its Silicon Valley) but I am willing to pay my share to keep this nation great and I'm voting for the Irish dude because O'bama is indeed "the one who makes the most sense".

Like this comment
Posted by R Wray
a resident of Palo Verde
on Oct 19, 2008 at 11:08 am

Here's a very good op-ed from the Washington Post by Peter Schiff on the causes of the financial crises.
Web Link
(Forget that he was an advisor to Ron Paul.)
We have to understand the causes before we can get solutions.

Like this comment
Posted by stephen levy
a resident of University South
on Oct 19, 2008 at 12:28 pm

R Wray,

The point you have been trying to have a discussion about is reasonable to debate. And having someone associated with Ron Paul is not a problem for me. Libertarians often have ideas I agree with.

Knowing the causes is part of identifying how to prevent something from happening again.

For me the immediate issues are about what to do NOW to mitigate the impact of past mistakes so that soon we CAN work on plans for "never again".

I wrote my ideas for what to do now on the Ask the Economist post in response to a reader question.

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Posted by R Wray
a resident of Palo Verde
on Oct 19, 2008 at 12:59 pm

My idea of what to do NOW is to repeal the bail-out. Let the markets clear. Sure, there will be some disruption but it will be shorter and less painful than the drawn-out mess of throwing taxpayers' money away which won't solve anything. We need to end the causes identified in my web link above as soon as possible. Economists should be figuring out how to eliminate these government interventions in the shortest possible time.
For further reference, see:

Like this comment
Posted by R Wray
a resident of Palo Verde
on Oct 19, 2008 at 1:01 pm

Sorry, the link above is:
Web Link
(I wish I knew to verify a link before posting.)

Like this comment
Posted by R Wray
a resident of Palo Verde
on Oct 22, 2008 at 6:35 pm

If anyone is interested in a very clear analysis by an Objectivist economist of the financial crises and the response to it, see George Reisman's essay:
Web Link

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