How much does Government need to be involved in policing the investment community? When you listen to financial industry people on channels like CNBC or Bloomberg, they like to say that yes there have been some abuses and yes we have had people who stole lots of money from unsuspecting investors, but Government intervention will just cause different problems and big Government is just plain bad.
I sort of feel this sort of argument is like John Dillinger thinking banks should leave doors unlocked and fire all security guards. Those things simply interfere in the free flow of money after all.
I'm watching a show right now where the discussion is along the lines that Wall Street should be allowed to police itself. Well, when you consider the fact that these are the same people that almost destroyed the economy completely by devising various financial instruments that assumed they would never be used. If you believe that housing will always go up and equity markets will have nothing but minor downturns, credit default swaps and sub prime mortgages are just fine. However, these are supposed to be financial professionals and their failure to properly evaluate risk is pretty damning.
Now these same people want to police themselves? Who believes they can?
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