Poll:When will the banking system collapse?

[HappySqurriel]

Rath said:

snakenobi said:

Rath said:

 

Removing regulations will not fix the banking system, it will simply allow more recklessness from banks and has more potential for disaster. Removing regulation increases the risk of banks collapsing.

you are wrong

 

by putting regulation a bank gets comfotable and think if they will fall will be bailed out which is corporatism

 

capitalism will make banks stand on their toes so they will not commit wrong practices

Bailouts are completely seperate from regulation and should be discussed seperately.

Capitalism encourages risk taking in order to return larger profits, regulation is simply making it against the rules to take certain risks. This reduces profits but increases stability.

In an ideal system that is what regulation is ...

A large portion of existing regulations are in place to protect the interests of the well connected, to appease special interest groups or appeal to important voting blocks, or to give the politician the ability to claim that they're standing for something. When you have federal, state/provincial, and municipal regulators each enforcing meaningless and often contradictory regulations, the regulations can represent a substantial burden on business while offering little in the way of benefit to businesses.