What escapes when regulation is used to address risk…

by Julia Evans on March 14, 2012

What is good for the goose (Financial Services) is good for the gander (services or treatments within the Government’s high-risk (mental) health industry).

 

At the bottom, there are some extracts from a recent Financial Times article. I draw your attention to the following phrases:

a package of regulatory reforms to address the risks the sector poses,

how to make safer the many different financial products that mimic banking services…

Investors, too, have contributed to the risks  … by unreasonable demands for low-risk…

We need to design a system which faces end-investors with reality…

we should not take the decline in some specific indicators of shadow activity … as suggesting that the risks have gone away…

“Any system this complex will defy complete understanding.”

 

So the answer to ‘What escapes when regulation is used to address risk…’ is that

freedom from risk is not possible.

It is not possible to make the treatments involved with giving the product of wellbeing or happiness, safe –

even those which NICE backs which mimic those that have been in place for centuries, based in relationships of trust and love.

The recipients of treatments, or subjects, need to be faced with reality: Government-standard wellbeing or happiness is an empty dream.

Even if Government evaluation measures show no abuse is happening, this does not mean that the risk has gone away.

 

Any human being is complex and will defy complete understanding.

 

I must find another wall to hit my head against…….. This is repetitive.

 

Quotes from:

Turner calls for radical action on shadow banking

By Brooke Masters

Financial Times March 14th 2012 and available here.

 

Quotes:

Lord Turner … charged with coming up with plans to make the sprawling $33tn sector safer. Lord Turner’s committee aims to produce by the end of the year both an analysis of shadow banking and a package of regulatory reforms to address the risks the sector poses.

Lord Turner said the committee was looking at how to make safer the many different financial products that mimic banking services …

Investors, too, have contributed to the risks through what Lord Turner called “myopic risk assessment” and unreasonable demands for low-risk, high liquid, yet high-yielding assets.

“We need to design a system which faces end-investors with reality, and does not allow the development of a set of claims whose apparent combination of risk, return and liquidity is in aggregate unsustainable.”

… “we should not take the decline in some specific indicators of shadow activity … as suggesting that the risks have gone away,” Lord Turner warned. “Any system this complex will defy complete understanding.”