tag:blogger.com,1999:blog-27951078.post6717939804074989266..comments2024-02-02T05:45:33.724-06:00Comments on Incoming: John Phippshttp://www.blogger.com/profile/03245790061133614986noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-27951078.post-71370413318494706332008-03-30T12:30:00.000-06:002008-03-30T12:30:00.000-06:00Regarding the sweeping changes to regulation that ...Regarding the sweeping changes to regulation that will likely be proposed tomorrow, I take comfort in the fact that Paulson, former Goldman Sachs CEO, is the current Treasury Secretary and will not overdue the regulation but rather attempt to make the regulation we have more consistent across entities and more competitive globally. Heck they may even propose a federal insurance regulator instead of the current 50 separate ones.<BR/><BR/>It is not a knee-jerk response to the current crisis and will take years of Congressional compromise to be put into action. The WSJ notes "The revamp process began early last year before the credit crunch and was initially aimed at improving American competitiveness." My initial reaction to the proposed combining of SEC and CFTC was more about combining regulators for entities and markets that use derivatives in both exchange-traded and over-the-counter swaps. Both tools are very effective at managing risk and providing liquidity to the markets. Sometimes sane and steady; othertimes temporarily overwhelmed by the technicals and less about fundamentals over the near-term.<BR/><BR/>Which leads to my comment on the agricultural marketing system to be swayed by the outside forces. That is here to stay. Clearly different problems lie ahead and you need to recognize them and manage the added technicals. You absolutely won't lose the rule of law, but instead get the strictly enforced rule of supply and demand with larger participants. As far as stability, probably less so going forward. Regarding confidence, that will only come if past practices are adjusted for the new technicals in the free markets.Anonymousnoreply@blogger.com