Regulation in financial markets ?

I have three references from NY times  in a single day – that criticizes lack of regulation in various tunes, including:-  “self-destructive bent of unfettered capitalism and its ability, unchecked, to wreak havoc far beyond Wall Street.”
One , two and three

It is odd to read it because capitalism was supposed to be an American free enterprising system.  None of the three articles specify which aspect is   “self destructive” and unfettered bent, though the disappearance of giant firms is disaster.

One of the articles actually mention that there is  regulation in the market. Articles ( or rumors) elsewhere suggest the creation of  risky credit markets in housing  mayn’t be  entirely  “market driven” .

Another article here in NY Times mentions derivatives and more capital for securities:As the new competition whittled down profit margins, investment banks used more of their capital to trade securities and also began developing financial derivatives to fuel profits.

If I have a concern about the collapse, it is about the idea that financial markets manages complexity in a rather transparent way, and one is given to understand that it is flexible and leaves plenty of scope to evolve on its own.


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