Streetwise Professor

November 7, 2011


As usual, Deus Ex Macchiato is worth reading:

One difficult criticism for those of us who believe that strong financial regulation is necessary – even if we don’t believe that the current structure is heading in the right direction – is that of rent seeking. The issue is that the stronger regulatory power is, the more it can be exploited. For me, the clearing provisions in Dodd Frank are a great example of this. The clearinghouses have been handed juicy profits by regulatory fiat.

Read the rest.  That’s an order.

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    And poking you for backing the Status Quo, or at least the Fedsury part of it, is really working.
    Here’s the video S/O posted of the NYPD defending The Man — take your money out of a TBTF megabank and tell everyone why, you’re getting arrested you terrorist!

    Comment by Mr. X — November 8, 2011 @ 12:31 pm


    This guys rant sums it all up for me.

    Comment by Mr. X — November 8, 2011 @ 12:51 pm

  3. this is a process that is demonstrated clearly in local real estate development, particularly in places by my home town. The accretion of regulations, often put in place by “reformers” does nothing but put in place a kind of middleman, regulatory contact expert. Sometimes these are elected officials, hence the bribery (either legal or illegal), Often, however they are a professional class of fixer or navigator – whose sole purpose and pay is to guide on through this man made thicket of often stupid regulations – this is the ultimate in rent seeking. The ultimate favor is using sovereign power to seize property, but often it is much smaller things, like how to file a permit.

    Actually seeking implies that these persons engage in some nefarious activity to gain their privileged position. The joke is that most of this has come about due to “reforms” put in by idealists who have no thought as to how their pet project or idea is going to work out in the real world. They don’t have to seek rents – the rents are handed to them, usually by unthinking busybodies who, In NYC, have big mouths and will not shut up (any visit to a NYC community board meeting will not only condemn direct democracy, but the theory of evolution as well, trust me).

    It is not enough to propose an idea, we really need to think how this is going to work through our existing system. Motto of the day – do no harm, and delay is harm.

    Comment by Sotos — November 9, 2011 @ 9:23 am

  4. by = like in first line, sorry.

    Comment by Sotos — November 9, 2011 @ 9:29 am

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