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Comment on:
Principalities And Powers
Dems Are Hunting Bulls To Extinction
2 Comments
Thursday, September, 24, 2009 10:42 AM
coopmeister
writes:
Bulls shouldn't be manipulated
"Discouraging risk taking on Wall Street dampens our general prosperity."
Did you miss the high risk financial fiasco that brought the economy to its knees...to near cardiac arrest?
When the high risk gambles involve the hard earned money of others...some risk boundary is mandatory!
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Thursday, September, 24, 2009 11:19 AM
David C. Innes
writes:
some risk boundary is mandatory
Yes. For example, the government wisely requires a particular "capital to lending ratio" for lending institutions. But there is a level supervision that so harnesses the horse that it cannot run. For example we have speed limits on the highways in most states. We limit risk taking in that way. There is a point beyond which, however, our interest in limiting the risk of highway death no longer justifies compromising our interest in getting quickly where we want to go. A thirty mph speed limit would reduce traffic fatality on the highways to virtually zero, but the economic cost to the country in lost travel opportunity would be prohibitive. Expect Barney Frank and Co. to be exeedingly imprudent in judging tipping point. That's my point.
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