| Final-Fan said: So regulation is telling you what to do, and oversight is telling you what not to do? I think it would prove pretty hard to separate the two. And do you really disapprove of safety regulations? And what about the fact that lack of regulation is considered to be the cause of the current crisis? (If I understand it correctly, something to do with investment banks merging with commercial banks, and securitization of mortgages so that no one really knew good from bad and it was too hard to renegotiate individual mortgages.) |
The merging of investment banks and commercial banks did not cause this crisis. Many nations operate without this distinction, and the most secure banks during this crisis have been those banks that have combined investment and commercial banking.
Wanting strict oversight with no regulation is tantamount to wanting a large police force with no weapons. Regulation is simply the manipulation of the market to get a desired outcome. Oversight is the watchful eye of the powers that be. Without regulatory powers, those who provide the oversight are impotent.
