The story of Freddie Mac and Fannie Mae shows the failure of deregulation. Under a deregulated environment, the sub-prime mortgages were created recklessly, and this caused the sound institutions to be sucked into the mess. http://money.cnn.com/2012/01/24/news/economy/freddie_mac/index.htm?section=money_topstories&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_topstories+%28Top+Stories%29
We are experiencing our own problems of deregulation in Singapore. It is time to recognize the difference between good and bad regulation. Unfortunately, our regulators does not have this expertise, as they are brought up in a sheltered environment. The latest measure to protect consumers against bad financial products is an example of a bad regulation - as it does not address the real issue and make matters worse.
We are experiencing our own problems of deregulation in Singapore. It is time to recognize the difference between good and bad regulation. Unfortunately, our regulators does not have this expertise, as they are brought up in a sheltered environment. The latest measure to protect consumers against bad financial products is an example of a bad regulation - as it does not address the real issue and make matters worse.
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