• Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint
Share this Page URL
Help

Part VII: A Troubled System > Can America Lead?

Chapter 15. Can America Lead?

The Internet bubble points to significant problems that now trouble our financial markets. In particular, protections for retail investors have eroded far too much. The bubble has made it clear that by using modern communication methods, the hype machine of the professionals in the financial markets can cause the retail investor to make illogical and irresponsible decisions against his or her own interest. Such behavior is part of human nature, but that doesn't mean it should be sanctioned; financial market players should not be permitted to cause at will their customers to lose their savings and pensions, and this is what happened on a very large scale in the bubble. Such a manipulated squandering of assets by the population is not good for the economy; it's not fair for the society; it's not in the best long-term interests of the financial markets themselves (though at the time, certainly some of the companies which are major players currently in the financial markets profited very much for themselves).

Scale matters. During the Internet bubble, what had been a limited problem became an enormous one. It isn't that this or that person was defrauded directly by this or that broker. It's that the system as a whole, functioning as its major institutions chose for it to function, had a general result that was not tolerable to a large portion of our society. This is a system problem and requires a large-scale solution.


PREVIEW

                                                                          

Not a subscriber?

Start A Free Trial


  
  • Creative Edge
  • Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint