Redstate

Posted at 8:07am on Apr. 4, 2008 Financial Markets Are Human Too

Fever for Regulation

By blackhedd

You may or may not have noticed Treasury Secretary Paulson’s speech last Monday, in which he unveiled a blueprint for modernizing the Federal government’s regulation of financial markets.

If you did notice it, you probably yawned. The report has been in the making for over a year, and although it contains a lot of good ideas, it’s neither directly responsive to the current market disorders, nor particularly likely to be enacted in whole or in part.

The editorialist at the New York Times noticed the speech, however. Their (predictable) response is that Paulson’s plan is far too reluctant to clamp down on market behavior that can result in stress (and crisis).

Unfortunately, I don’t get much sense that the editorial powers at the New York Times have direct knowledge of how real markets work. As it turns out, markets are human too.

Let me tell you what I mean…

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