antiquary

Why We Need Federal Insurance Regulation Now

"Companies like Allstate will go regulator-shopping."

Exactly so. The robber barons did it back in the 19th century when Kentucky had the laxest railroad laws and the credit card companies did it in the 1980s with North Dakota. It's an accident of federalism.

Casinos and gambling work the same way; states can't afford to be outcompeted by other states that permit them, for they can't bar their own citizens from participating, with the result that a giant sucking sound occurs of their money.

If nothing else comes from this downturn, I hope this does-- that we always analyze any situation with a weather eye for the public appearance of being outcompeted by those who'll indulge in unhealthy, short-term expedience.