tag:blogger.com,1999:blog-1323827107980168707.post5078214959083276801..comments2009-01-05T19:36:22.331-05:00Milenanoreply@blogger.comBlogger1125tag:blogger.com,1999:blog-1323827107980168707.post-68465459652623238252009-01-05T19:36:00.000-05:002009-01-05T19:36:00.000-05:00Great post Melina. I think you've hit on a bigger point - whenever it seems that capitalism (or its invisible hand) has failed, look for things that may have intervened. In this case, you had a deeply influential Madoff influencing policy to the point where there is actually a thing called the "Madoff Exception" - really. It seems that besides his influence through lobbying, he had contacts, including family members at the SEC - this is going to get ugly. One of the keys and tenants of successful capitalism is transparancy and the rule of law. Well, here we go. People using undue influence to alter policy to to block transparency. This is not a case against free markets, but restricted ones. This is the very reason that hedge funds need to lose some of that special treatment. whenevery you hear of "special treatment" or "exceptions", look out! <BR/><BR/>The other blaring case of inappropriate regulation is the case of FNMA, GNMA, etc. Here you had the gov't implying that they'd back something regardless of the quality causing banks to make loans they wouldn't have in a normal market. This causing investors to buy junk they wouldn't have in a normal market, and up it goes. All because - not capitalism - but because of government intervention in a free market.<BR/>-Pdpaulhttp://www.blogger.com/profile/03288224632840946995noreply@blogger.com