Financial Regulation

Ultimately, you cannot legislate away the pernicious effects of
stupidity and greed and their profound influence on the stability
of the financial markets and systems. The US and other economies
are littered with past financial crises, most of which could have been
avoided by prudent foresight and courageous action. But, every so
often, emotion like greed and fear combine with ignorance and
outright stupidity to overwhelm the system.

We could all benefit greatly from a more stable monetary policy and
less monetary tinkering. Consumers would all benefit if they had
exposure to finance, banking and economics in their student days,
and regulators could benefit greatly from keen and diligent
gathering of financial and market intelligence so that they at least
know what we could be getting ourselves into during heady
financial times.

However, investors and lenders who do not do their homework
thoroughly and maintain sensible disciplines will avoid getting
burned in the markets only if they are lucky. Caveat Emptor!