> Attempts to keep all investment activity well-regulated and conformant to some definition of legitimate. Thus minimizing the risk that my money manager is going to lose my money on an illegitimate, thinly disguised gambling platform like the Hollywood Stock Exchange.
As opposed to losing it on a regulated, totally-not-gambling company like Enron, or in a regulated, totally-not-gambling market like sub-prime mortgage derivatives? Similar arguments could be made against the other two items as well, under the general framework of "regulatory capture". Your arguments presume that government regulation agencies always act in the best interest of the general public.
As opposed to losing it on a regulated, totally-not-gambling company like Enron, or in a regulated, totally-not-gambling market like sub-prime mortgage derivatives? Similar arguments could be made against the other two items as well, under the general framework of "regulatory capture". Your arguments presume that government regulation agencies always act in the best interest of the general public.