Saturday, December 26, 2009

Good and bad regulation

Dear Mr. Tan
How Much Would Better Disclosure Help?
 ...the difference is
between good regulation and bad regulation.
 ...good regulation is
that which enhances knowledge and competition,
both of which make markets function better. ..
 ...bad regulation is
that which restrains competition and stifles innovation. ..
 ...firms must be able to fail
in order for the competition to work..
 ...less government interference
also helps to prevent single firm or industry dominance. ..
  One of the central causes of the financial crisis
was a lack of information...
  There are those who complain about the cost of additional disclosure.
To that, I respond: good.
Complex financial products should be more costly to sell...
 Of course, information and understanding aren't the same thing...

1 comment:

Anonymous said...

Nothing is complex to the insurance agents or RMs so long there is commission to be made and the simpler products become the bigger the commission. There is no complexity, it is in the mind.

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