Free Market Regulation Question

Question:

Which would run the mega banks out of business quicker?

A completely free market that had no State imposed regulations at all, and relied entirely on private contract, private security, and private courts to uphold property rights.

or

The current system.

Discuss

reply to post by AnarchoCapitalist


I like the free market system and to be honest, I don't see how either of your options are not already in play, if even off the grid, so to speak.

Could you elaborate a little? Exactly what is the point?

Originally posted by redoubt
reply to post by AnarchoCapitalist

 

I like the free market system and to be honest, I don't see how either of your options are not already in play, if even off the grid, so to speak.

Could you elaborate a little? Exactly what is the point?

My point being that the State is propping up the current banking system with your tax money.

This would not be allowed in a free market.

reply to post by AnarchoCapitalist
I think (and apply this to all industries, not just banking) that if we stopped enabling stupid decisions in the first place (Fed - fractional reserves, lenders of last resort, interest rate manipulation, bailouts, etc.), let these groups deal with the consequences of their own actions (bankruptcy) instead of keeping the giants afloat while letting their smaller competition sink, and didn't have protective regulatory agencies that insulated the big boys from competition by imposing niggling regulations that only the giants can meet (or penalties that only the giants can afford to pay) and are staffed by corruptible people who become obvious targets of the industries and usually end up in a revolving door situation with employees of each trading places in exchange for mutual favors - we'd be much better off.

I hear so many attack capitalism and the open market as well as deregulation, but unless I'm simply not seeing something, it seems to me that they aren't honestly looking at what really happens in such climates...and we haven't actually had real open markets or capitalism for quite awhile. I mean, come on - who regulates the regulators? Hell, we've got the SEC, etc., shredding/burning case files and essentially covering up for their "regulees" - what are we supposed to do, impliment regulatory agency regulation agencies ad infinitum and hope that eventually we magically end up with some pure people in the right spots, some actual "Untouchables" who will finally make it work the way it was supposed to?

It seems to me the market is actually pretty good at regulating itself when left alone and corruption in vital areas is properly addressed...

reply to post by Praetorius


Indeed.

Regulatory capture
en.wikipedia.org...

Without regulations the money guys would grab even more money. Masters of monopolization they are.

Originally posted by earthdude
Without regulations the money guys would grab even more money. Masters of monopolization they are.

How?

They would all be bankrupt today.

Originally posted by earthdude
Without regulations the money guys would grab even more money. Masters of monopolization they are.

So, who regulates the regulators, and how does upstart competition force them to innovate - remain competitive - or be driven out of business if the regulatory agencies are choking the life out of said new competition while the "money guys" are laughing at the 'regulations' they can either meet or ignore with no difficulty, while changing nothing?

Honestly - take a look at where we're at, and tell me (this is an honest question, and I am very likely just ignorant on the matter): what regulations have protected us, and from what, exactly? To me, it seems like big business and the bankers are laughing all the way to...well...the bank.

To stretch this further to a states rights v. federal law point as well, I'll bring up environmental regulation as I don't really have an issue with states imposing regulations, since they'll promptly find out they're shooting themselves in the foot if they make a stupid decision: If you've ever seen Who Killed the Electric Car, you'll know what I'm talking about here, but sometimes the states pass stringent regulatory requirements...that are then overridden by more lax federal regs which trump them (since we all know the rock of the Federal Government beats the scissors of those weenie states!).

Be blessed, just my thoughts here but I don't think it's working like it should. In a perfect world, regulation would probably be great, but neither we nor this world are such.

Originally posted by AnarchoCapitalist
Question:

Which would run the mega banks out of business quicker?

A completely free market that had no State imposed regulations at all, and relied entirely on private contract, private security, and private courts to uphold property rights.

or

The current system.

Discuss

A free market system that was backed by firm laws and a maximum 0.5% market cap

on any one institutions holdings.

Originally posted by AnarchoCapitalist

Originally posted by earthdude
Without regulations the money guys would grab even more money. Masters of monopolization they are.

How?

They would all be bankrupt today.

We would be bankrupt, they would have run off with all the depositors capital

or transferred it/ converted it into another form.

Without government intervention, these megacorps would soon go extinct like the dinosaurs they are. Small community banks would pop up fairly quickly, because let's face it megabanks suck. The service industry would be the first to overhaul itself as single individuals hung out their shingles and they would quickly win customers away from larger companies with superior customer service and attention to detail. If we could couple lack of government intrusion, beyond very BASIC health and safety laws, with the end of income taxes and withholding I believe that even manufacturing would soon return to the US. Right now in business, as in many areas, government is the enemy.

Originally posted by mastahunta

Originally posted by AnarchoCapitalist

Originally posted by earthdude
Without regulations the money guys would grab even more money. Masters of monopolization they are.

How?

They would all be bankrupt today.

We would be bankrupt, they would have run off with all the depositors capital

or transferred it/ converted it into another form.

LOL, you're going bankrupt right now!

The Fed has doubled the money supply nearly overnight in order to bailout all the banks and fund the State. That is going to cause serious inflation, and that inflation is going to erode the purchasing power of your money.

YOU would not be bankrupt in a free market, the BANKS would all be bankrupt in a free market.

This would not be allowed in a free market

In a "free" market the big banks would buy off or kill people that wanted to publish news of their crimes, so they would never be held accountable.

Originally posted by AnarchoCapitalist

Originally posted by mastahunta

Originally posted by AnarchoCapitalist

Originally posted by earthdude
Without regulations the money guys would grab even more money. Masters of monopolization they are.

How?

They would all be bankrupt today.

We would be bankrupt, they would have run off with all the depositors capital

or transferred it/ converted it into another form.

LOL, you're going bankrupt right now!

The Fed has doubled the money supply nearly overnight in order to bailout all the banks and fund the State. That is going to cause serious inflation, and that inflation is going to erode the purchasing power of your money.

YOU would not be bankrupt in a free market, the BANKS would all be bankrupt in a free market.

edit on 2/23/2012 by AnarchoCapitalist because: (no reason given)

So you are saying that in 2008, it would have been better to have ALL my capital disappear
overnight?

In a free market system, three bankers can decide to leverage all the holdings of their bank into
position they bet upon. Effectively transferring all the banks holdings into a position they can bet for
or against. They can simply say they made a bad investment, TOO BAD...

The bank would be bankrupt, the bankers would be rich.

Edit;
Further more there would be no laws to warrant prosecution

Originally posted by CB328

This would not be allowed in a free market

In a "free" market the big banks would buy off or kill people that wanted to publish news of their crimes, so they would never be held accountable.

Yes they would, just like kings and royalty

Originally posted by AnarchoCapitalist

Originally posted by earthdude
Without regulations the money guys would grab even more money. Masters of monopolization they are.

How?

They would all be bankrupt today.

again

The banks would be bankrupt, the people who own the bank would be rich

Originally posted by CB328

This would not be allowed in a free market

In a "free" market the big banks would buy off or kill people that wanted to publish news of their crimes, so they would never be held accountable.

That is totally absurd.

Brinks Security personnel aren't going to run around mass murdering people at the order of a bank. Brinks would get run out of business quickly.

Originally posted by mastahunta

Originally posted by AnarchoCapitalist

Originally posted by earthdude
Without regulations the money guys would grab even more money. Masters of monopolization they are.

How?

They would all be bankrupt today.

again

The banks would be bankrupt, the people who own the bank would be rich

Liability limits are imposed by the State.

In a free market, business owners would be held accountable for the actions of their business.

The corporation is a State creation.

Originally posted by AnarchoCapitalist

Originally posted by mastahunta

Originally posted by AnarchoCapitalist

Originally posted by earthdude
Without regulations the money guys would grab even more money. Masters of monopolization they are.

How?

They would all be bankrupt today.

again

The banks would be bankrupt, the people who own the bank would be rich

Liability limits are imposed by the State.

In a free market, business owners would be held accountable for the actions of their business.

The corporation is a State creation.

Liability Limits are also imposed by contract and legal ease. So how would I get my money back
if I am bankrupt? My phone is shut off, my car is repossessed and so is my home. How do I
get my money back from a billionaire now that I am destitute?

In plain English please

Originally posted by mastahunta

Originally posted by AnarchoCapitalist

Originally posted by mastahunta

Originally posted by AnarchoCapitalist

Originally posted by earthdude
Without regulations the money guys would grab even more money. Masters of monopolization they are.

How?

They would all be bankrupt today.

again

The banks would be bankrupt, the people who own the bank would be rich

Liability limits are imposed by the State.

In a free market, business owners would be held accountable for the actions of their business.

The corporation is a State creation.

Liability Limits are also imposed by contract and legal ease. So how would I get my money back
if I am bankrupt? My phone is shut off, my car is repossessed and so is my home. How do I
get my money back from a billionaire now that I am destitute?

In plain English please

edit on 23-2-2012 by mastahunta because: (no reason given)

Money back from what?

In a free market, your money would not be stolen in the first place.