Re:Yellen cites 'potential dangers' in U.S. stock valuations
by NoMoreNicksLeft on Thursday May 07, 2015 @09:55AM
(#9505022)
They don't raise the cost. They raise expenditures, but the benefits of capturing banking regulations are so great that the net gain is astronomical.
> In other words, the bad actors are still bad, but there are fewer of them left,
No. They can recruit. Any personnel shortfalls are temporary.
If the regulations raise the cost of malfeasance such that bad actors have to expend more to maintain their badness, then even fully captured regulations can still be a net positive. In other words, the bad actors are still bad, but there are fewer of them left, and they can't be quite as bad because it's more expensive to maintain the regulatory capture.