Wednesday, 2 March 2011
See Professor Bainbridge on the evils of over-regulation
This is the first time I have ever just written that folk ought to read an article on another blog. And, in turn, Prof Bainbridge is reblogging Marc Hodack but read it. They discuss why excessive regulation stifles the capital markets with no observable economic (or governance) benefits. There is no new data here - just sensible argument. In Europe we may not have Sarbanes Oxley or Dodd Frank but we do have Commissioner Barnier and the EU harmonising/dirigiste tendency, not to forget our very own UK government's tendencies to make too many laws. They all forget the law of unintended consequences. They all forget that, once made, laws tend to become ever more complex and are rarely swept away into the dustbin - however bad they turn out to be.