"I speak for myself, not for any element of the financial world"
Wasn't suggesting that you, yourself, did speak for the financial world. My point was that an implicit "you shoulda known better than to trust us" might save ML's butt, but only at the cost of its longer-term credibility - ditto for the rest of 'em...
"why should this time be any different than those which followed other large market rises and subsequent, often rapid, declines?"
Does that mean we're in agreement? I can't think it will do much for a libertarian approach to economics and politics if "this time" leads to a regime of regulation as sweeping as instituted the last time(s)...
"Why risk litigating an uncertain case ... when the ability to impose a fine quickly is readily available?"
Among other things... The reason I described such an imaginary attorney general as having to be "monomaniacally suicidal" is that no one wants to ruin the brokerage industry (except, it sometimes seems, the brokerage industry itself...), and that it is indeed unlikely that anyone will go after ML like they were going after Capone (even though some might consider it "justified")...
As for your question regarding definitions of fraud: Obviously, most people would not consider a bit of dissembling on the part of a salesman to be "fraud," but a) most people will also recognize a difference between fudging on some aesthetic issue and lying about MPG, re-sale value, or crash test results, and, b) having the public view brokerages as being on the level of used car salesmen, or lower, can't be a positive for the industry and for what it represents. I tend to think that everything the industry touches and depends on, and whatever depends on it, would be affected - perhaps profoundly, and that means monetarily, too - by such a loss of credibility.
As for your last point, do you extend your free speech views to all regulation of false advertising, all fraud and racketeering laws, all shouting of fire in crowded buildings, etc.? You may, for all I know, but the public and its representatives are much less extreme and consistent, especially in the aftermath of having their collective pocket picked. |
