Tuesday, December 06, 2011
Business can gripe about Federal and state regulation but much of the time, it is the fault of business that regulation is imposed. Take this case. MF Global apparently used customer funds in an unauthorized and illegal manner, thereby precipitating new rules from the Commodity Futures Trading Commission. Other industry participants will complain about onerous regulation, but they need only look at themselves for an explanation. It is religion among businessmen to talk about free markets, but capitalism can't handle freedom. When it happens, businessmen run amok. They need the hand of government to guide their behavior. Otherwise, the marginal and short-term players drive out those who act responsibly. That is why it is hard not to get impatient when CEOs preach the glory of free markets. It is hype and not PR. If they were in an environment of rabid capitalism, they would plea for regulation. Wouldn't it better if they were honest?