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Originally Posted by JA$ON
And if you think the banking system is "unregulated" you're kidding yourself. And the truth is....you can add to the tens of thousands of pages of regulations that exist and people will usually find a way to avoid / circumvent / eliminate / backdoor them.
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Therefore peel back all regulations because no regulations work?
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Originally Posted by JA$ON
Do you feel that strong regulations have been put in place since 2008 that keep institutions from engaging in the type of risky behavior that they were beforehand? (serious question)
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No because these regulations put in place were lobbied hard by the banking sector itself and don't have teeth. Does that mean we should adopt a free market approach? Probably not because big money in big industries will just isolate themselves into a protectionist bubble and you will get the same result you have no but with no regulations... that doesn't seem effective.
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Originally Posted by brentbacardi
Um actually no. If it was left to the private sector, most banks would be out of business and new ones would be taking over that did not engage in risky behaviors. Survival of the fittest works if you let it. Those scum bankers should be out of jobs, not taking down big bonuses on the tax dollar.
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So the American population should endure a complete depression as the "free market" sorts things out? If you want to dissuade confidence in any system then this approach would be optimal. Why would anyone trust the new companies coming in without regulations in place?
You could instill trust by setting up firm regulations and these banks adjust or die. We have a 300 million person clientele. If companies don't want to adjust to a market that is far different than the current one then they're done. Someone else will gladly step up to the new regulations and thrive. Not being able to leverage at 20 to 1 isn't the end of the world