User 86999

The Reagan Counterrevolution

Peter, I have read your book and have been reading your articles and watching your comments on tv. What you say makes sense most of the times, but then suddenly, you say something that is either too simplistic or just doesn't make sense. Buffett Jr has pointed out one above.

Can you write a focused and concise analysis of why we're in such a historic financial turmoil and what exactly was the role of regulation in this turmoil. I think that effort will make your case more believable. The general statements like regulation is bad is not strong enough evidence. As economists we should be able to back up with empirical data.

I would argue that the lack of regulation is exactly why the bankers' greed got out of control and now we're all paying for it. The gov has to step into the situation after all, because the final tab of that greed is running into trillions (yes, with a T), and no private enterprise has that kind of money; besides when you start selling those junk CDO and CDS vehicles to foreign enterprises, the gov will be forced to step into resolving any conflicts. So, how do you propose the private enterprise to be able to self-regulate. I think the current situation already self-evident of what self-regulation can cause.