Baked In The Mix

People will always try to better their condition, even though they have many different ideas about what “better” means. This opinion piece on the current mess in financial markets reminded me. We got into this mess because people tried to better their condition within a regulatory framework that had unforseen and unintended consequences. Regulators in years past didn’t anticipate the power of human creativity.

Now there are calls for more regulation, which probably means more complex regulations. No one can foresee all the consequences, but a betting man would guess that some future disaster is baked in the mix.

Would it be better to have no regulation at all? Would it be better to have a quota for regulation? Would it be better to have all regulation expire unless revisited?

We’ll never know.

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