Regulation creates a moral hazard.
Sentiment: NEGATIVE
Regulation is necessary to protect our natural environment, keep our food and medicine safe, and ensure fair competition and fair treatment of our workers.
But let me tell you what happens when regulations go too far, when they seem to exist only for the purpose of justifying the existence of a regulator. It kills the people trying to start a business.
As we try to make the financial system safer, we must inevitably confront the problem of moral hazard.
Generally I'm against regulation.
Market discipline can only limit moral hazard to the extent that debt and equity holders believe that, in the event of distress, they will bear costs.
Whenever regulation increases, personal freedom decreases.
Moral codes adjust themselves to environmental conditions.
When a company creates a product that directly or indirectly adversely impacts the health of people, that product must be regulated. The process by which it's created must be regulated. No company has the right to injure people. No company.
Is regulation per se bad? Is better regulation bad? I think better regulation is good for the business community, and I think that's something we should get together on.
Regulation is necessary, particularly in a sector, like the banking sector, which exposes countries and people to a risk.