Quote Originally Posted by GoldenBoy812
In bold you will find a universal truth.

You basically sum it up in the middle of your statement. Law's are all we really need, laws that punish fraud/theft/cohesion. Make laws that call for certain standards, and allow open competition to analyze. If further analysis reveals levels of fraud etc..., then proper action can take course. Moody's and S&P gave AAA ratings to what was actually high yield junk. That is fraud in my book. If firms were legally allowed to enter the market of investment analysis, then just maybe one might have called the bluff. Regulation basically gave away a monopoly, which is why over regulation is unnecessary.

Greenspan is right in saying firms will not regulate themselves. It would cost too much in light of the money they are already paying government (taxes) to regulate for them.
Laws won't help. They'll either subvert those laws or lobby against them because it's more profitable.

Laws don't stop behavior. Murder has been illegal in every civilized culture in history, but it still hasn't stopped people from doing it