http://www.american.com/archive/2009/september/regulation-and-the-financial-crisis-myths-and-realities
| Myth 1: Banking regulators were in the dark as new financial | instruments reshaped the financial industry. | Myth 2: Deregulation allowed the market to adopt risky practices, such | as using agency ratings of mortgage securities. | Myth 3: Policy makers relied too much on market discipline to regulate | financial risk taking. | Myth 4: The financial crisis was primarily a short-term panic. | Myth 5: The only way to prevent this crisis would have been to have | more vigorous regulation ... | The biggest myth is that regulation is a one-dimensional problem, in | which the choice is either “more” or “less.” From this myth, | the only reasonable inference following the financial crisis is that | we need to move the dial from “less” to “more.” | The reality is that financial regulation is a complex problem. Indeed, | many regulatory policies were major contributors to the crisis. To | proceed ahead without examining or questioning past policies, | particularly in the areas of housing and bank capital regulation, | would preclude learning the lessons of history. _______________________________________________ http://mccmedia.com/mailman/listinfo/brin-l_mccmedia.com
