Is global regulation going to arise from the ashes of this economic crisis?

[Kay]

One of Obama's top economic advisors has put the idea out there. A former Fed chairman, Paul Volcker's a voice that warrants listening to unlike some "experts" in my book. He said:




"I don't remember any time, maybe even the Great Depression, when things went down quite so fast."

He noted that industrial production is falling in countries across the globe faster than in the U.S., one result of the decline caused by the breakdown of unbridled financial markets that operated on a global scale.

"It's broken down in the face of almost all expectation and prediction," he noted.




Volcker stressed the importance of international cooperation in creating a new regulatory framework, particularly for major banks that operate across national boundaries — the reverse of what's happened in recent years.

Full article. (http://news.yahoo.com/s/ap/20090220/ap_on_bi_ge/volcker_economy;_ylt=AjGTqHQTm07XOgvgizqBEROyBhIF)

How feasible or practical it would be is another question but I think we all can agree at least that something needs to be done differently to avoid a repetition in future of this mess.

[Fergal]

I really do hope that improved regulation does come about as a result of this crisis. A global standard would be great, provided it allowed for some flexibility for differences between countries. Perhaps there could be top level regulation that applied to all countries and then allow each country to set their own specific lower level regulations.

It's difficult to understand how so many regulators in so many countries got it so wrong.

[scifi]

I believe these strict measures will surely reduce the chance of repetition of such times in future but there is no guarantee that future will be safe for ever from these as there always tend to be some or other loopholes in every regulatory measures of these type!!!!!!

[Kay]

I really do hope that improved regulation does come about as a result of this crisis. A global standard would be great, provided it allowed for some flexibility for differences between countries. Perhaps there could be top level regulation that applied to all countries and then allow each country to set their own specific lower level regulations.

It's difficult to understand how so many regulators in so many countries got it so wrong.

It is, isn't it...that's a very good point, Fergal. And I think we need to find answers to those kinds of questions before we stand any chance of rebuilding with a more solid foundation next time around. Where to begin though, that's very hard to fathom as well.


I believe these strict measures will surely reduce the chance of repetition of such times in future but there is no guarantee that future will be safe for ever from these as there always tend to be some or other loopholes in every regulatory measures of these type!!!!!!

True scifi. But as Fergal pointed out, everyone doing their own thing certainly didn't work. Maybe if the greatest minds in the world are gathered together with the collective goal of finding a global standard, good things will happen. They sure as heck couldn't make them much worse.

[scifi]

It would be much better & more effective idea, If UNO can create a wave of initiation in this direction..!!:)

[Kay]

It would be much better & more effective idea, If UNO can create a wave of initiation in this direction..!!:)

UNO? Sorry, I'm not sure what you mean by that scifi. Do you mean the United Nations or something else? I'd be glad to see anyone take the idea and run with it to be honest! :D

[scifi]

UNO? Sorry, I'm not sure what you mean by that scifi. Do you mean the United Nations or something else? I'd be glad to see anyone take the idea and run with it to be honest! :D

Yeah I mean UNITED NATION ORGANIZATION only..As it has representative from most of the countries of the world. It will be much more influential in this case..