Why No Regulation, Even Now?

    Regulation of the financial system is long overdue.  Lessons can be learned from the imperfect but workable experience of State Insurance Departments and other State regulators over Insurance.  Given the more recent experience of failure in the financial system, the question might well be asked:  Why no Regulation, even now?

    And here's the most incredible thing of all:  18 months into the most spectacular man-made financial calamity in modern experience, nothing has been done to change that, or any of the other bad incentives that led us here in the first place.

Michael Lewis and David Einhorn, "The End Of The Financial World As We Know It" p. 9, col. 1 (New York Times Nat'l Ed., Week in Review Section, Sunday, January 4, 2009).

    The answer may be written at the very end of the same excellent newspaper column, as is  linked above:

    The funny thing is, there's nothing all that radical about most of these changes.  A disinterested person would probably wonder why many of them had not been made long ago.  A committee of people whose financial interests are somehow bound up with Wall Street is a different matter.

Id.

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[dolly]

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