Alan Meltzer has a very good piece in today's Journal regarding financial reform legislation. Here are three excellent lines from that piece that should be required reading for Members of Congress:
- Regulation often fails either because regulators are better at announcing rules than at enforcing them, or because the regulated circumvent the regulations.
- The market is not perfect. It is run by humans who make mistakes. But the same humans run government where they make different, often more costly, mistakes for which the public pays.
- Capitalists make errors, but left alone, markets punish such errors.