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Problematique:Regulating World Financial Markets.
The outline of the problem I found very wide.I did a quick seach on your web site for Socio Economics and could not find any.
Given world markets operate at such a speed as to ensure no person can ever deal with the present( orders placed an executed in 3 milliseconds) the suggestion that there can ever be a cause and effect in regulation of real time market I believe is misconceived at the outset.If anything is clear from a regulatory perspective it is that there is a high degree of simple incompetence in governement regulators who having been incapable of making a living as a trader seek the safety of Governement to tell those who can how it is done.Given US politicians have been roundly lambasted for providing free crefit in liar loans over a long period the question is why have these people gone unpunished?How can there ever be credible regulation when these people are in office and the public keeps putting them there.
The only value in the concept of Social capital is in the wholesale creating of currency to make up for regulatory failure on a monumental level.The essentially political nature of this problem is obscured by the use of independant Reserve Banks recognising that politicians cannot be trusted and cannot trust themselves.
If social capital is tied to the need to replentish capital(quantative easing) by reference to cyclical slow downs exposing the mendacity of never accounted for public officals( they never pay for their mistakes they just leave office) There might be an edge to your problematic.Of course when you realsie that intellectually markets are merely a set or random events which have a closer relatinship to quantative mechanics than to the wisdom of regualtion one might start to get somewhere.The langauge of governemt IMF and all these other so called powers that be is simply “hold on” growth will come some time and then all my words on the wind can claim credit for them( and I will pick up my risk free give me`s whatever happens so what do I care anyway).
I can’t find one reference on your website to accounting rules which define what debt is and when it is cancelled.Given Wall street lambasts Congress under FASB Rule 164 for creative accountancy I just wonder whether anyone could learn anything concrete to apply to the real world applying aggregates which are dubious at source but the source is never discussed defies logic.
The best advise I heard was from Tony Alexander Chief Economist from the BNZ who analysed their advise and concluded they were right 48% of the time namely do the opposite of what any economist says and you will have 2% edge.As to public regulation Allan Greenspan put is best in paraphrasing him that since 1948 there has been a grat deal of advances in dealing with data and computers but despite that on a econometric basis the Federal Reserve cannot pick reverses in the market which means they will always be behind the curve and always not the source of advise as to how to improve the private persons lot which when aggregated is the lot of a nation.So really the best advise is don`t look to the government to solve your problems because they have no idea.The premise of the Problematique is that they can.Socio economics in my view is the closest I have seen to recognising this.The market is unpredictable and is incapble of being regualted in the a predicatable pattern.Therefore all regualtors can do is clean up the mess and remove unacceptable suffering by printing money when all else fails which it has.It has before and will again so accept it don`t pretend it can be avoided in a perfect world.Further every time there is a failure in New Zealand they change the name of the government department and pretend they have turned over a new leaf.The reality is governemt is inherantly incompetent because the people in it have no skin in the game.The worst that ever happens is they have an enquiry into their stupitity promiose not to do it again and then do it again and rinse and repeat.