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Wall Street Is Too Big To Regulate

August 13, 2012

July 22, 2012, Gar Alperovitz, ‘Wall Street Is Too Big To Regulate’ NYT – Written by a political economy professor, used many of old conservatives arguments against them, or rather simply quoted economist Simons, conservative ideologue, who came to the natural conclusion in the Depression that for effective markets to function, businesses must be competitive. If there is not competition then there is not a functioning market, and it would be better to socialise the industry, particularly in light of the immense lobbying power of the financial sector, rendering most reforms and regulations temporary and ineffective at best. Demonstrates what occurred when economists were actually faithful to ideas and facts rather than blind faith and corporate funding – thinking. The issue with “too big to fail” isn’t the big, it’s the fail. These banks, even if broken up, can’t really afford to fail, and nationalisation would provide the strongest security one could imagine. After all, investors right now are essentially paying the Treasury to hold onto their cash.

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