First Things First

Yesterday, I started teaching a new course I designed called "Regulation of International Markets."  One of the more provocative student observations during the first class queried, "Where does the money come from when somebody buys low and sells high?"

That's always a good question, but, in these trying times, it's particularly poignant.  New Yorker magazine recently ran a piece asking why we need Wall Street.  After years of a single regulator's rule, Britain is pondering a decentralized structure.  Some foreign markets have simply transferred disciplinary authority from stock exchanges to the government.

Which reminds me again of how bland were the US regulatory reforms of 2010.  Perhaps it's time for a broader mindset?

--JSC, 12/21/10