"Des waerelds doen en doolen, is maar een mallemoolen,"

"Des waerelds doen en doolen, is maar een mallemoolen," engraving from Het Groote Tafereel der Dwaasheid, 1720.

"The actions and designs of the world go round as if in a mill." South Sea bubble financial crisis.

Monday, May 2, 2011

The embeddedness of financial regulation

Vogel illustrated an interesting paradox - "freer markets, more rules" - looking at the British financial revolution of 1980s. The Financial Services Act (FSA) passed on November 7 after the Big Bang gave birth to a myriad of regulatories agencies. He also noted a change in “regulatory culture”: 
The FSA may have revolutionized life in the City even more than the Big Bang, for in matters of regulation it replaced the informal with the formal, the flexible with the rigid, and the personal with the legalistic” (Vogel, 1996:93).
This shows that financial regulation, also, is embedded in broader social and cultural structures that evolve over time.

The Crisis in drawing

David Harvey speaks about the crises of capitalism with an interesting take on the financial sectors around the 6:00 mark.