> Maybe we should consider getting rid of the financial market--what
> social desirable objective does its existence facilitate?
The usual list of why regulating financial markets is desireable includes:
- If you don't regulate it, it exists anyways, except without regulation
(funny, this doesn't much apply to the drugs market, but nevermind that)
- Organized markets have better transparency than unorganizaed ones (witness the recent performance of CDOs and CDSs)
- Good markets can spread risk, which encourages growth
That's the big three off the top of my head.
/jordan