On Tue, Feb 9, 2010 at 12:17 AM, ornamentalmind <[email protected]> wrote: > “Some regulation is required but over regulation brings it's own set > of problems…” – DJ > > Specifically, what problems have over regulation brought to the USA? > Presumably, these problems would be at least as dire as the result of > deregulation.
"The Sarbanes-Oxley Act of 2002, which placed extremely costly additional financial burdens, is estimated to have “cost in lost market value of U.S. companies at $1.4 trillion.” In addition, it appears that the requirement for independent-director majorities on corporate boards has reduced the willingness of corporations to take risks, which will have a long run, adverse effect on U.S. economic growth. The Securities and Exchange Commission (SEC) has placed a number of costly, new regulations on companies that have not been justified by competent cost-benefit studies and engaged in a number of enforcement abuses, notably, charging companies in the press with a possible securities violation without sufficient proof, which makes them subject to SEC staff blackmail. The SEC also adopted a requirement that companies “expense” stock options, even though they are not an expense to the company. Venture capitalist and financial expert, Kip Hagopian, in a major article just published in the California Management Review, explained that stock options are a “shared benefit” and not an expense. Thirty financial, accounting and economic experts, including three Nobel Prize winning economists, have signed Hagopian’s paper. The poorly thought-out legislation and regulation, including attempts to “cure” problems that are not problems, have now clearly damaged the U.S. All jurisdictions are subject to pressures for unjustified and destructive regulation. These pressures come from: Regulators who desire to increase their staff sizes and power; Politicians who like to claim they are “solving” a problem while giving little thought to whether there really is a problem, and whether or not their “solu tion” will make matters better or worse; Regulatory compliance staffs within businesses who have a vested interest in more regulation; And the news media which, without giving any thought to the consequences, all too frequently like to demand more regulation to stop any “alleged” problem." I pasted the above from an article from a 2006 article from FreedomWorks. The entire article can be found here. http://www.freedomworks.org/publications/the-danger-of-over-regulation > “A few simple rules that are ENFORCED and an active and vigilant SEC > are what we need.” – DJ > > Specifically which ‘simple rules’ are you proposing Don? And, I agree > that enforcement is a big issue. Unfortunately all too often political > ideology enters into the picture rather than more objective analysis. I propose full disclosure. Archy is right. We need openness, transparency and, I'm dreaming here, honesty. If we have that then the folks decide from there. When companies or banks or unions or churches or governments or whatever aren't doing this then they should be investigated. I expect a lot from a free press. Maybe too much. > “… I assume you are referring to Clinton's Financial Services > Modernization Act of 1999.” – DJ > > Not specifically. While it is all linked together, most of the recent > stuff started with RR’s signing into law of the Garn–St. Germain > Depository Institutions Act of 1982. Another bad move from a populist president. Ronnie wasn't perfect. Twas lack of oversight that allowed the S&L disaster. > > > “I agree this sweeping removal of regulation was probably a mistake.” > – DJ > > Good, I’m glad we agree that deregulation was the problem. I'd accuse you of fallacious argumentation here but that would be petty and doesn't advance my mission of honesty and my sincere desire to get my opinion across without demeaning my interlocutor. ;-) dj -- You received this message because you are subscribed to the Google Groups ""Minds Eye"" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/minds-eye?hl=en.
