I have spent a bunch of this year learning about/dealing with the regulation in the financial services industry.
My main takeaway is that 95% of it effectively hurts consumers and helps lawyers.
My main takeaway is that 95% of it effectively hurts consumers and helps lawyers.
I could write a plain English explanation of most 100-page legal document in 3 pages which consumers could actually understand, but it would be a huge liability and so we must pay the lawyers to write a 100-page doc which no one will ever read.
They will, by necessity, have all the costs of said lawyers passed on to them though.
To be clear, not saying anything against lawyers. All the ones I have met are doing the best they can given the regulatory framework they have to operate in.
Ditto on regulators.
It is a perfect example of a coordination problem where nearly all participants are acting in good faith and competently but outcome still sucks for everyone
It is a perfect example of a coordination problem where nearly all participants are acting in good faith and competently but outcome still sucks for everyone
"Moloch! Moloch! Nightmare of Moloch! Moloch the loveless! Mental Moloch! Moloch the heavy judger of men!"
slatestarcodex.com/2014/07/30/med…
slatestarcodex.com/2014/07/30/med…
