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View Diary: Wall Street's moral hazard (128 comments)

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    I suspect that he never believed that so many firms would act in a manner that was so threatening to their long-term financial interests.

    well, as with all these situations, if there is not a level playing field of responsible regulation, the supposedly "good" corporate citizens will, by default, lose out financially compared to those who do not act in good faith and Greenspan, given his responsibilities as fed Chairman, should have been well aware of this dynamic.

    another example of this kind of thing happens when the petrochemical industry is left to regulate itself.
    the "good" corporate citizen loses when they buy the scrubbers that keep them from polluting the air while the bad ones pollute with impunity and make more profits at the expense of everyone.
    Only by enforcing regulations on good and bad corporate citizens to maintain high air quality standards, does the "good" corporate citizen get an even playing field on which to compete, IMO.

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