Regulation, Deregulation, and Reregulation


People seem to operate based upon the rules and incentives that pertain: official and unofficial. The balance between transparency and privacy is altered by rules changes. It seems to me that being humans ourselves we should be able to perceive potential failure points in our systems. But instead of examining empirical evidence, we tend to operate from belief and ideology. That impedes our ability to understand what happens and to remake our model. We set up a system that allows for abuse in secret then act surprised that abuse has occurred. Collapses are actually inevitable in this circumstance, we assume because it doesn’t happen instantaneously that we have a sound system.

So we are usually playing craps but kidding ourselves into believing in some awesome new paradigm. What tended to be eliminated in the financial services industry has been compliance and oversight, and to allow mixing of different non equivalent, competing fiduciary responsibilities in the same entity, and to let accountability dissolve through special accounting practices that are manipulative. Additionally federal guarantees affect behavior by encouragingly gambling style risk.

At this point we should probably move away from rules based regulations that seem prone to legal manipulation and move to principle based regs.


Election Forecast


Obama, with 378 Electoral Votes.

What’s with the Rightwingers Anyway?


Conservatives seem an irrational bunch. I mean their idea of proof is their own firm belief. Are they

1. Stupid?
2. Ignorant?
3. Cowardly?

They believe weird impossible things and reject disproving facts. Crazy schtuff. And this.

Tax Cuts and Deregulation


I wonder if people now understand that tax cuts and deregulation are not always good things? How many people still want to control their SSI through private accounts? I wonder how many people on the street bellyaching about lost money voted Republican until now. People cannot routinely make good ad hoc decisions for themselves. But, they can make good abstract decisions about how things should generally go. I hope future President Obama makes use of this to push for a paradigm shift.

Debunked: Ten Conservative Myths About National Security


Really good article by Sara Robinson. How do people believe the crap they do anyway?