[ExI] Greenspan: rhetoric vs. reality

[Lee Corbin]

BillK wrote:

> On 5/22/09, dan_ust wrote:
> <snip>
> 
> Thanks for describing in detail the wild excesses that lack of
> regulatory enforcement led to in the financial industry.

Well, I think that what Dan wrote supports the
more general contention that when government
first begins creating artificial incentives
in the economy, and introduces other distortions,
yes, the government must patch up the unintended
consequences (often moral hazards) with patchwork
regulation, which then often requires further
regulation, and so on. So it's no surprise that
deregulation of some of these patches are very
dangerous.

Lee