The Big Boys of Wall Street testified before congress yesterday and sheepishly admitted that yes, there is more regulation needed. Of course it is, isn't it boys?
What is the end result of government regulation? The answer is a tighter market, less competition and a death grip wrapped around one of America's symbols of freedom, the stock market. Presidents of such giants as Goldman Sachs are all for government regulation, if they were not does anyone really believe such actions would ever happen with ex-Goldman soldiers flooding the federal government?
As established giants of the business Goldman has the ability to offset the price of regulation, it is called passing down the expense. Goldman like all other giant investment companies simply add on the fees and pass them down to the individual investor, the regulation is meant to protect. Smaller investment firms are not so fortunate as the smaller revenue stream will not offset the cost of regulation.
In the meantime they develop ways around the rules, set up partnerships with the government (both of which make billions off the backs of the investor) and behave as expected, reckless with no consequences for actions. When the house of cards fall, they turn to the taxpayer, through the government and receive a bailout.
So, you see they act the role. Humble, sheepish and understanding, it is the role the American people seek and the one congress demands. In the end, the regulation will be passed, the market will continue to get squeezed and the next time these investment firms are in trouble, the words "they're critical to the American markets." will never be more true, because the next time the market will be even more monopolized because that's the way they want it.
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