SOX [Sarbanes-Oxley] was sold as the way to prevent future market bubbles and crashes.
That’s Larry Ribstein reminding us. And here is Arnold Kling reminding us:
A Central Banker should stand up to fear-mongering. Even when it comes from a Treasury Secretary.
And here is Robin Hanson reminding us of his favorite lessons:
Medicine isn’t about Health
Consulting isn’t about Advice
School isn’t about Learning
Research isn’t about Progress
Politics isn’t about Policy
SOX may be a necessary but not sufficient condition for preventing problems.
you think SOX [Sarbanes-Oxley] is neccesary? Are you a neo-con or a democrat? Let me guess, you think the New Deal programs “saved us” from the depression?
SOX is trash. SOX, along with the US corporate tax rate, is why US companies are resorting to offshoring and gammut relocation of operations ouside the US and off of US exchanges. If the aim of the government is to regulate and tax US innvoation and production into the ground in the long run, they are certainly succeeding thus far.
As an employee of a publicly traded company and privy to candid, personal conversations with our CEO and CFO, I can say that despite running a very safe, sound, compliant, stable, capitalized, and totally above board (redundancy added) company, they get scared every time they have to sign off on our financials due to the increased liability under SOX. The political and regulatory games of gotcha in today’s business climate, with no regard for the material impact, if any, do more harm than good.
I don’t know about bubbles and crashes, but SOX is certainly an effective way to prevent future IPOs.
law is not about justice . Its about peace and orderly solution of conflict.
Justice require true . And the whole true is unanteinable in, the supposed to be ,short span of a trial. And there are values that trumph the true. Torture will bring the true but its forbidden like surveillance without warrant, pentotal, using the past life of a victim of sexual felonies etc. Those values limit the pursuit of truth , then you will have only a trial, formal, true.Without true ther is no material justice . If you want justice ask it to god, if you belive in anyway
In this case the origin of the fear-mongering is mainly Bernanke, who made his career out of obsessing over the dreaded Great Depression. Bernanke has since last year been running around telling anybody who will listen that the Fed must take drastic action to prevent another Great Depression, and by now he’s said it often enough that the markets have come to believe him and are in a panic. Bernanke’s professional paranoia is turning into a self-fulfilling prophecy. Lions, derivatives, and bears, oh my!
This is kind of like all those silly people who insist that the police maintain a presence in their low-crime communities. After all, if there haven’t been any serious crimes committed there for several years, why bother having the police there!? Next, fear-mongers will start worrying about a major terrorist attack on a U.S. city, a severe hurricane hitting an urban area causing widespread loss of life and property damage, or a serious earthquake hitting SF or LA. Chicken little nonsense!
More to the point, there is empirical evidence that central banks can prevent a panic from blowing up into a full-scale depression–do you have specific evidence to refute Bernanke’s research? In contrast, there is very little empirical evidence that Fed statements led, for instance, bond rating agencies to downgrade many of the firms that have either failed or are in severe danger of failing.
putting flourine(Hydrofluosilicic acid (H2SiF6)) in the water supply is not about cavitiy reduction.
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