> Sam wrote: > Please correct me, I'm still in a cloud. > Yeah, you're still not there yet. Here's the simple equation:
Regulated company (e.g., ins company) + Non-regulated company (e.g., hedge fund) = Non-regulated company And that's the key. Under Glass, an insurance company COULD NOT sell ANY unregulated products in any division of it's company or financially dependent holdings. Again, this was for a simple reason: you as a consumer need to be confident in the products you buy or you won't buy them. This is the simplest form of a well-regulated market. Think of a food market: if you think - from experience - that 10% of the food at your local Krogers contains poison you won't shop there. In other words the food "market" will collapse due to lack of minimum standards. Thus the FDA. Same is true with financial products: thus Glass gave you confidence in your insurance company by regulating it's operations and preventing it from taking risks that would jeopardize your claims - like creating a hedge fund. If you eliminate Glass, now a regulated insurance company can start a hedge fund and THAT company can take massive risks with your insurance money. Because if you deregulate financial markets it turns out that - LIKE EVERY OTHER MARKET - they eventually collapse! Which is what happened in the 30s and what happened in 2008. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Want to reach the ColdFusion community with something they want? Let them know on the House of Fusion mailing lists Archive: http://www.houseoffusion.com/groups/cf-community/message.cfm/messageid:307279 Subscription: http://www.houseoffusion.com/groups/cf-community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=89.70.5
