I totally agree with him.
------

One of the most prominent proponents of free-market capitalism is
having second thoughts.

Judge Richard A. Posner, a federal appeals court judge who has been
called the most cited legal scholar of all time, discussed his doubts
and his analysis of the current financial crisis in a wide-ranging
interview with the Huffington Post.

A longtime proponent of deregulation, the idea that business works
best in a free market without burdensome government regulations,
Posner began to change his mind when he realized the enormity of the
crisis. This change of heart inspired him to write his upcoming book,
"A Failure Of Capitalism."

Though still a believer in the virtues of capitalism, Posner now
emphasizes the importance of government regulations; the need to
strengthen the regulatory structure by directly funding authorities
rather than the current fee-based model; the dangers of excessive
executive compensation, and even expressed support for the idea of
changing bankruptcy law to make it easier for homeowners who face
foreclosure.

"I wouldn't have thought the economy was as vulnerable," he explains.
"I wouldn't have thought that banking deregulation was dangerous."

Posner says he grew "complacent" about the risks of deregulation since
economists "said they had solved the problem of depression and knew
how to control inflation without causing recession." His relaxed
attitude was also due to the fact that the economy had been running
fairly smoothly since the early 1980s.

Now, he realizes that more regulation of our financial markets is
needed, employing a typically entertaining analogy to illustrate his
point:

"If you're worried that lions are eating too many zebras, you don't
say to the lions, 'You're eating too many zebras.' You have to build a
fence around the lions. They're not going to build it."

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