Tuesday, January 29, 2008

Lessons from the Turmoil

Today’s Business Standard carries an editorial that deals with possible regulatory responses to financial markets crises, a theme also addressed in a recent post on this blog. Here is an excerpt from the editorial:

“The history of financial regulation shows such regulation is rooted in crisis. Significant regulatory change usually takes place in response to the perceived inability of the previous regime to anticipate and prevent a crisis. This is not in and of itself a negative attribute. Any attempt to envisage every possible scenario and build in regulatory safeguards in anticipation can completely stifle innovation. However, it is critical that the right lessons are learned from every crisis. The true test of a regulatory system lies in its ability to avoid the same crisis a second time around.”
The entire editorial is worth reading, and is not very long (only 4 paragraphs!).

1 comment:

Veracity Jones said...

Bombay Bashers Up To Bat

Short selling has come to Bombay. Investors everywhere are rejoicing.

Certainly, short selling is necessary to keep any market honest and balanced. But opening the door to the good will assuredly give passage to the wicked, as well. Now, the Indian market will have to bolster itself against the onslaught of miscreant manipulators. It cannot be long before the Bashers begin their dirty work and the market becomes littered with the broken dreams and hopes of the individual investor.

We can only hope that Bombay will be more vigilant against such dastardly behavior than Wall Street has been. We can hope it. We cannot count on it. Hope for the best; prepare for the worst…and be informed!

We at Basher Busters call on all investors to be proactive where this newfound danger is concerned! Keep your eyes and your ears open. Do not be duped or misled.

Knowledge is power!