Comments on: Government Must Keep Track of Derivatives? http://www.thefreemanonline.org/departments/it-just-aint-so/government-must-keep-track-of-derivatives/ Just another WordPress weblog Sat, 21 Nov 2009 11:57:50 -0500 http://wordpress.org/?v=2.8.6 hourly 1 By: Jorge Borlandelli http://www.thefreemanonline.org/departments/it-just-aint-so/government-must-keep-track-of-derivatives/comment-page-1/#comment-16162 Jorge Borlandelli Tue, 07 Jul 2009 20:05:41 +0000 http://www.thefreemanonline.org/?p=9751#comment-16162 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. 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 http://www.thefreemanonline.org/departments/it-just-aint-so/government-must-keep-track-of-derivatives/comment-page-1/#comment-16161 Jorge Borlandelli Tue, 07 Jul 2009 19:59:39 +0000 http://www.thefreemanonline.org/?p=9751#comment-16161 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. 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 http://www.thefreemanonline.org/departments/it-just-aint-so/government-must-keep-track-of-derivatives/comment-page-1/#comment-15377 TokyoTom Mon, 29 Jun 2009 05:29:09 +0000 http://www.thefreemanonline.org/?p=9751#comment-15377 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 <a href="http://mises.org/Community/blogs/tokyotom/search.aspx?q=limited" rel="nofollow">in a number of posts at my blog</a>. 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.

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