Intervention is not Working, so we Need More

Muni Issuers Could Use More S.E.C. Protection — Fair Game – NYTimes.com.

Did you know whose fault it is that state and local governments keep getting “screwed” by Wall Street?

Apparently, it’s the SEC’s fault for not doing enough. No one else is to blame:

  1. It’s not the politicians fault for not hiring financial professionals to deal with the other financial professionals on the other side of the table.
  2. It’s not the voters fault for electing people who are not financially sophisticated enough to run multimillion dollar entities.
  3. It’s not the investors fault for taking the politicians’ budget and revenue numbers at their word rather than doing their due diligence.

We have plenty of rules and regulations on the books, but fraud keeps happening. What makes anyone think that tinkering with the rules and their enforcement is going to fix anything in the long-term?

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