The bottom line on our financial markets
In dealing with financial markets, there are only two paths to take - Either free or regulated. A free market relies on the investors and entities to run the market. When one of the two makes a bad call, they must be allowed to fail. When someone fails someone else will prosper, bringing the market back to equilibrium. This is clearly not the environment that the US Market has established, therefore making it fall into the regulated grouping. The problem with the regulated approach, and the current problem with our markets, is that regulation must maintain a pace ahead of those in the markets. This is because entities will find ways to benefit from loops in the regulation, and some of these methods will carry a great deal of risk. And the bottom line is that those working for profit will always be slightly ahead of those working to regulate. The market will once again gain strength, but while the corrective regulation is being worked into the process losses will be taken.