Market Failure or Government Failure? (joyas de Allan Meltzer)
Genial el artículo de Allan Meltzer en The Wall Street Journal titulado “Market Failure or Government Failure?” (18 marzo). Ahí van unas joyitas y extractos:
–This (el fracaso de las regulaciones en el pasado) is because regulation is static, while markets are dynamic. If markets don’t circumvent costly regulation at first they will find a way later.
–The answer is to use regulation to change incentives by making the bankers and their shareholders bear the losses.
–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.
–Real financial reform requires that bankers—not regulators—monitor the risk on their balance sheet and accept the losses from mistakes. We will not get sound banking until the CEOs of the large banks and their shareholders are forced to pay for their mistakes.
–Gold standard rules and a strong belief in a balanced budget protected us from fiscal imprudence for the U.S.’s (first) 150 years. Both rules are gone. Now both political parties favor a balanced budget when they are out of power.
–The president talks about freezing discretionary spending one day, but the next promises to build high-speed railroads and enact middle-class entitlements including an expensive health-care plan. When will the administration present a credible plan to prevent the looming financial crisis?
–Capitalists make errors, but left alone, markets punish such errors.
(Requiere suscripción, pero os lo puedo pasar, siempre que no se enteren los del WSJ…).