In this Jim Rogers Index Funds video, he says that the banking and the insurance industry have always been heavily regulated, and that is where all the problems arose. Then when there were problems, they stepped in and saved everyone rather than allowing them to fail. The idea that more regulations will solve the problem is laughable. We will have more regulators. Great. It was incompetent regulators that couldn’t do their job in the first place.
Everything the Fed has done in the last 20 years has caused massive problems. The best thing to do about the Federal Reserve is to abolish it. They are just bureaucrats with government jobs. The Federal Reserve were supposed to be the ones looking out for stuff like this, but instead they were the ones who caused all these problems. Luckily, the people who were invested in the Jim Rogers Index Funds made a lot of money.
The regulation has not worked. When new innovations led to problems, the government stepped in to save them. Those firms that used bad innovations should have been allowed to fail. Instead, they got even more innovative and created ever larger problems. People think that the Fed and the SEC is on top of things, but that is nuts.
If you have more regulators, what makes you think that they will be any more competent than the previous ones? The situation will be even worse because they will have even more complex regulations to enforce. Innovations like the Jim Rogers Index Funds are good because sometimes they are genius. But the bad ones need to be cleaned out of the system.
