Comments on: The death of the CFPA http://blogs.reuters.com/felix-salmon/2010/02/28/the-death-of-the-cfpa/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: GraemeHein http://blogs.reuters.com/felix-salmon/2010/02/28/the-death-of-the-cfpa/comment-page-1/#comment-12303 Mon, 01 Mar 2010 16:15:32 +0000 http://blogs.reuters.com/felix-salmon/?p=2748#comment-12303 Caveat emptor. Further, an honest man can’t be cheated (he also can’t be found).

These calls for additional regulation will fail to achieve their purported goals because the regulators will be captured by those they are purported to regulate. They will also fail because they will engender a false sense of security, leaving people more open to frauds and scams and socializing the costs. Bailouts are a bad idea whether they are for too big to fail institutions or too sympathetic to fail individuals.

The best regulation is less regulation. People will always be greedy and foolish about their investments. Regulatory structures just increase the costs to investors and taxpayers and create more feather bedded jobs for people who can’t perform in the private sector.

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By: david3 http://blogs.reuters.com/felix-salmon/2010/02/28/the-death-of-the-cfpa/comment-page-1/#comment-12299 Mon, 01 Mar 2010 03:44:48 +0000 http://blogs.reuters.com/felix-salmon/?p=2748#comment-12299 It took the depression of the 1890s, about four years in duration, to bring about populism which eventually led to progressive reform. Even then it took additional (banking) shocks to see consumer protection acts such as the Federal Trade Commission, which was established in 1914. Unfortunately reform takes numerous shocks of sufficient severity.

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