Comments on: Government Must Keep Track of Derivatives?

By: New England Patriots

New England Patriots — Sat, 04 Feb 2012 16:30:23 +0000

Thank you for writing educational content. I¡¯m impressed with your ability to compose persuasive material. you have granted me lots of thought-provoking views to consider.

By: Ned Netterville

Ned Netterville — Tue, 29 Mar 2011 15:44:37 +0000

Government regulators are always eventually beholden to those they regulate–always. Competitors are the only honest regulators.

By: Robert Kinnett

Robert Kinnett — Tue, 29 Mar 2011 13:16:32 +0000

Don’t fall for it. Statists constantly berate Free Market advocates with the false claim that we want to “do away with ALL” government. Our society can’t function without order, which in our Constitution takes the form of property rights. What DeSoto is saying is that Government has strayed so far from its purpose that it didn’t hold accountable those who took property that was not theirs, via derivative contracts. No one was held responsible except the American taxpayers.

Most reasonable people would consider this a crime.

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By: Jorge Borlandelli

Jorge Borlandelli — Tue, 07 Jul 2009 20:05:41 +0000

Seriously now,
I think that government failures are opportunities for market based solutions. Given the lousy record of rating agencies, a trusted entity with good reputation can start to compete charging fees to investors instead of issuers.

By: Jorge Borlandelli

Jorge Borlandelli — Tue, 07 Jul 2009 19:59:39 +0000

I know both Bob and Hernando de Soto. The only connection is that they both have lost some tiles from the roof. Please change the photo.

By: TokyoTom

TokyoTom — Mon, 29 Jun 2009 05:29:09 +0000

Bob, great post.

We got increasing financial risk because pervasive regulation of public firms – stemming from the grant of limited liability to shareholders – actually generated widespread moral hazard, on which you touch the tip of the iceberg. Individuals were sble to reap large rewards, while shifting risks to counterparts, firms, shareholders and taxpayers.

The answer actually lies in forcing market participants to take greater responsibility for their own transactions, and less reliance on a supposedly all-knowing government.

I have explored this in a number of posts at my blog.