Friday, May 7, 2010

My $0.02 on Financial markets reform.

New financial instruments should be subjected to the same sort of prerelease screening as new pharmaceutical compounds and for the same reason, possibly fatal side effects.  I..e. the Consumer Regulatory language of current bill.


Strongest possible presumption in favor of market, as opposed to OTC trading.  Liquid markets provide much better possibilities for price discovery.  Investment banks love OTC for the monopoly rents that they can yield.

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