How do you propose to solve regulatory capture with more regulations? Or more regulators? Given the obvious failure of regulation, why is the only answer that anyone can conceive of "more regulations"? Like trying to quench a fire by adding more fuel, oxygen, and heat.
And in light of the inability of regulators to enforce the regulations and the plain failure of them to do so, who cares what the regulations actually said anyhow?
I don't have a way to solve it long term. However I believe that it can be worthwhile to have a regulation that temporarily makes things better even if it eventually fails. For example I think that Glass-Steagall was a good thing for a very long time.
And in light of the inability of regulators to enforce the regulations and the plain failure of them to do so, who cares what the regulations actually said anyhow?
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