Last visit was: 19 Nov 2025, 03:29 It is currently 19 Nov 2025, 03:29
Home
GMAT
Messages
Tests
Schools
Events
Rewards
Chat
My Profile
Close
GMAT Club Daily Prep
Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Go to My Error Log Learn more
Close
Request Expert Reply
Confirm Cancel
User avatar
jb32
User avatar
Joined: 20 Feb 2008
Last visit: 06 Jun 2010
Posts: 773
Own Kudos:
155
Given Kudos: 9
Location: Texas
Concentration: Finance
Schools:Kellogg Class of 2011
Posts: 773
Kudos: 155
RIP, MBA 08 May 2009, 06:46
Kudos
Add Kudos
Bookmarks
Bookmark this Post
AlexMBAApply
jb32,

Just because the regulatory body has shown incompetence doesn't mean that regulation is unnecessary. The problem is in the execution, and not in the fundamental principle that there needs to be some rules in the financial industry.

Yes, gov't screws things up, but that doesn't mean gov't is unnecessary - unless you're an anarchist.

You see, jb32, in your world since the justice system is screwed up, we shouldn't bother having any laws against murder, theft, assault, etc. because hey, the criminals rarely get the proper sentencing, or even worse that the justice system is rigged. Forget jails. Who needs laws or courts to interpret the laws and settle cases? Let the mob mentality rule. We don't need standards at all, because every single human being has the same standard when it comes to behavior. One guy believes that being with a 16 year old isn't pedophilia. Another guy feels it should be 18. We'll let good old Darwin decide.

To use your perspective -- because the justice system is rigged, we don't need laws at all. Screw contract law, because lawyers always foul it up. If we had a free-for-all where murder, rape, assault, theft, wasn't outlawed, everything would be just as peachy as it is today. In fact, it's the justice system that gets in the way.

Police? We don't need the police if they are corrupt (i.e. in your view, rather than "fix the police" you just want to get rid of the police altogether because you feel that citizens can enforce the laws themselves).

Now, you may think that it's apples and oranges.

It isn't.

Laws and regulations by definition exist to manage behavior in a civil society - whether that arena is social or economic. We need rules - to manage and influence behavior, whether they are violent or non-violent (the only difference between corporate malfeasance or grand theft are the perpetrators - the behavior fundamentally is the same).

To take a fatalistic view, throw your hands up and say, "it's all futile, gov't sucks so therefore there shouldn't be any" is a cop out. It's the kind of cynical attitude that has the potential to lead someone to justify bad behavior (not saying you'd actually go out and rip people off or to abuse your power...). To be blunt, it's cynical "gov't is for losers" viewpoints like yours that many people on Wall Street share (where I used to work) that makes it much easier to justify bad behavior. If you don't fundamentally believe in having rules or you believe that you can regulate your own behavior, you will find it easier to justify irresponsible behavior (or even illegal and unethical behavior). It's slow descent into nihilism. Wall Street and the financial industry needs stronger regulation, and it needs stronger enforcement of such regulation. To continue to let the inmates run the asylum isn't a solution - it's a cop out and excuse for doing nothing. Giving bankers more candy won't encourage responsible behavior - you need rules and regulations to *discourage* irresponsible behavior.

Yes, the SEC needs reform. Government needs reform. And it will never, ever be perfect. Nor will it ever be truly competent. But its very existence in enforcing laws and regulations, however imperfectly or perversely, is a far more civil world than the alternative that you are suggesting - which is anarchy.

Again, if you're an anarchist, fine - I'm sure then you don't believe we should have any court system, any laws, any law enforcement, or any legal apparatus whatsoever.
Show more
Thanks for the arrogant response Alex where you make many (incorrect) assumptions about my beliefs on government. Just because I'm a Libertarian is no reason to attack me on this forum. Now, if you want to have a real discussion where you don't belittle my thoughts, I'd be happy to have it, but I won't take being insulted as some kind of anarchist. That kind of disrespect is not welcome on these boards. I know you've contributed some valuable content to this site, but this is not acceptable.

I'm just saying that the incompetence is very real and will continue as long as government continues to do things the same way it always has. Regulating Wall Street is not like regulating farmers or the oil industry. These people are much smarter than the people tasked with enforcing the rules. Unless they get some of those same people and pay them a decent wage to do it, they will always be one step behind. I'm advocating a new approach because obviously the old way wasn't working very well. Continuing the same policy that doesn't work is the very definition of stupidity. Unfortunately, government has a very long record of this same sort of behavior. I'm just saying it's time to rock the boat and think outside the box for a completely different solution. Sadly, the kind of reform that might actually work will never occur.
User avatar
Raabend
User avatar
Current Student
Joined: 16 May 2008
Last visit: 17 Mar 2016
Posts: 884
Own Kudos:
156
Given Kudos: 29
Location: Earth
Concentration: Brand
Schools:Cornell '11
Posts: 884
Kudos: 156
RIP, MBA 08 May 2009, 07:11
Kudos
Add Kudos
Bookmarks
Bookmark this Post
jb32, you might have overreacted to Alex's reply a bit. I dont really think he was attacking you. You are part of a debate and that is usually what happens in debates. He didnt make fun of you and he didnt call you stupid, he just laid out his problem with your view (or what he interpreted to be your view)....if he misinterpreted your stance show him in a rebuttal. Personally, I dont see his post as report worthy. A far cry from the BW jerkiness.
User avatar
buffdaddy
User avatar
Joined: 14 Oct 2007
Last visit: 13 Jan 2011
Posts: 546
Own Kudos:
303
Given Kudos: 8
Location: Oxford
Schools:Oxford'10
Posts: 546
Kudos: 303
RIP, MBA 08 May 2009, 07:19
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Hi Guys,

the two of you are awesome contributors to this community, and I enjoy reading both of your contributions. I think i'll step in an say that it'd be best to agree to disagree at this stage :-D , since heated politics debates normally are separatist by their very nature.

Raabend is right in the sense that the whole ethos of this place is to help each other constructively in achieving goals that one might not necessarily achieve by ones self.
User avatar
FN
User avatar
Current Student
Joined: 28 Dec 2004
Last visit: 07 May 2012
Posts: 1,576
Own Kudos:
675
Given Kudos: 2
Location: New York City
Concentration: Social Enterprise
Schools:Wharton'11 HBS'12
Posts: 1,576
Kudos: 675
RIP, MBA 08 May 2009, 08:19
Kudos
Add Kudos
Bookmarks
Bookmark this Post
jb32

Thanks for the arrogant response Alex where you make many (incorrect) assumptions about my beliefs on government. Just because I'm a Libertarian is no reason to attack me on this forum. Now, if you want to have a real discussion where you don't belittle my thoughts, I'd be happy to have it, but I won't take being insulted as some kind of anarchist. That kind of disrespect is not welcome on these boards. I know you've contributed some valuable content to this site, but this is not acceptable.

I'm just saying that the incompetence is very real and will continue as long as government continues to do things the same way it always has. Regulating Wall Street is not like regulating farmers or the oil industry. These people are much smarter than the people tasked with enforcing the rules. Unless they get some of those same people and pay them a decent wage to do it, they will always be one step behind. I'm advocating a new approach because obviously the old way wasn't working very well. Continuing the same policy that doesn't work is the very definition of stupidity. Unfortunately, government has a very long record of this same sort of behavior. I'm just saying it's time to rock the boat and think outside the box for a completely different solution. Sadly, the kind of reform that might actually work will never occur.
Show more

you forgot ...and that you are from texas so we automatically hate you.. :)

haha...just stirring the pot
User avatar
Praetorian
User avatar
Joined: 15 Aug 2003
Last visit: 27 Dec 2017
Posts: 2,868
Own Kudos:
1,705
Given Kudos: 781
Posts: 2,868
Kudos: 1,705
RIP, MBA 08 May 2009, 09:13
Kudos
Add Kudos
Bookmarks
Bookmark this Post
this thread has outlived its purpose. we all need to contribute just a little bit of restraint - seek a clarification instead of passing judgment.

I am not asking you to be meek - you can have strong and relevant opinions, and yet be nice to others.
   1   2   3   4