A Conversation on Innovation

Just finished the book “The big short” by Michael Lewis. Highly recommended. Amazing story about the mortgage crisis. There are no good guys in the entire story. Everyone is either greedy, evil, or incompetent – often more than one of the above. In SIEPR conference there was a session on Dodd-Frank. Despite the two thousand pages everyone is focusing on the Whistleblower provision. It is easy to pick to attack any regulation regime. After the depression, we got Glass Steagall which mostly held the financial industry in check. After the Great Recession we have Dodd-Frank with no control on too-big-to-fail or doing anything meaningful about derivative, same derivative that Warren Buffett called the weapon of mass destruction.