Too many blast libertarians because we favor very small amounts of - TopicsExpress



          

Too many blast libertarians because we favor very small amounts of regulation. They point to the banking crisis and banks being allowed to leverage themselves into oblivion. They miss the point. Its about freedom, absolutely. However, its about equal parts responsibility. Heres a libertarian solution to banking regulation: Do whatever you damn well please -- invest in any form of derivative/swap/subprime/speculative/commoditized debt instrument you want -- I dont care. However, once you stop investing in real things and start betting the farm on these frankenvestments, you lose all FDIC/SIPC/Fed protections and youre on your own. If you want freedom baby, you got it! With no bailout safety net, moral hazard is nearly non-existent. Libertarians are not anarchists here -- the role of government in this scenario would be to ensure proper information is in the marketplace so the public is crystal clear the difference between banks and high-stakes gamblers.
Posted on: Tue, 04 Nov 2014 17:56:12 +0000

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