Swwep the Street

Steve Kyle at AmericaBlog has a long post on the benefits (financial, economic, and psychic) of reigning in the obscene profits (for basically doing nothing) of Goldman and their ilk. Being an investor, and primarily in the instruments in question (deriviatives), I'm leery of over-regulation (or random regulation)

But since the 'repeal' of Glass-Stegall in 99, the proitability of the majors has skyrocketed, primarily on the creation of ether, and the stability of the market has plummeted. Market efficiency has been shown to be an elusive dream in the face of obscene short term profits. Who cares if the market crashes next week, if I can get my 1.5 billion today- it'll still be worth a half billion afterwards BOOHOO

So this is one case where I'm all in favor of regulation, even if it may hurt me in the short run. This has to be reined in, or the idiots on the Street will destroy the system.

I think he sums it up well when he says "I, for one, would be very happy with less efficiency but more stability." Amen.