Booth skriver:

Much of the new breed of regulation that appears to have failed has relied on institutions using highly quantitative models and lots of market information. Uniform accountancy standards have been implemented by law, in much of the world, based on market values.

Data-driven risk models based on patterns repeating themselves in financial markets in predictable ways were encouraged by regulation. These models were adopted widely throughout the world. So, what happens when they fail? The whole financial world – encouraged by regulation to take the same approach to risk management and capital setting – goes pop at the same time.

Markets, in fact, are a discovery process. It cannot be assumed that market prices are a perfect reflection of economic value at any particular time.

Market participants continually discover new information, make errors and respond to errors. It is important that financial institutions are allowed to do things differently so that some (who use better and more efficient methods) succeed and others fail (indeed, it is important that institutions are allowed to fail).

Les hele innlegget her .