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Originally Posted by tw
Wow. Attitudes that underly Marxist socialism - from Radar. If Radar has posted accurately, then no stock market ever need exist. We are all honest and equal. We all treat one another with equality and impartiality every time. Stocks would be traded freely on any street without all that market regulation. That only possible if we all live according to principles that permit Marxist socialism.
Why do stock markets exist? Trading of stocks on the street, as in Radar's model, never works. Stocks need a controlled environment (NASDAQ, LSE, the Frankfort Exchange, etc) because stock exchanges only work in the safe and well defined environment of regulated exchanges. Radar says none of the world stock markets need exist. We don't need brokers. We don't need regulations and laws. We don't need all that bureacracy. The problem with this Radar world: stock markets exist because those standards, control and regulation are necessary. Without regulations of markets, then anarchy would reign.
There is a fine line between too much regulation and insufficient regulation. So we have numerous financial instruments with various types of regulation. But in every case, some regulation and laws are always required. No way around that imposed 'level playing field' to make free market economies work.
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You're taking a huge leap and claiming I've said things I didn't. I said markets could exist and thrive without any government regulation. Without regulations on these markets, anarchy would most certainly NOT ensue. To claim that without government regulations, the markets wouldn't be regulated privately is laughable. To claim the markets wouldn't be held to standards, including standards that require honesty in trading, is on the verge of retarded.
Markets would exist without any regulation at all. They would be organized, held to standards, and regulated privately. We would still have brokers, and traders, etc. because most people would feel more confident trading stocks with these people than with a guy trading stock certificates from the trunk of his car. What would the problem be with going to a store on the street to buy stocks? I don't see one.
Without government intervention the playing field is always level. It's government that makes things unfair and tilts the playing field. Government regulations allow politically influential businesses to gain an unfair advantage over new start-ups or prevents new businesses from starting up at all.