One business group that wants more regulation

In the name of efficiency, one business sector has become inefficient, and that sector would like government regulation to restore efficiency.

The business sector: stock trading.  The inefficiency: run-amok computer algorithms for high-frequency trading, HFT.  There have been several cases where HFT algorithms have caused problems with initial public offerings and set off price-spikes that some firms couldn't handle.  Firms may not put in sufficient checks on certain trades in order to gain speed.

"'Market participants at every level of the trade life cycle reported they are looking to regulators to establish best practices in risk management and to monitor compliance with those practices,' Carol Clark, senior policy specialist at the Chicago Fed, wrote in a summary of the survey's findings."

See "High Frequency Trading: Worse than You Thought", Jeff Cox, CNBC, 2012-09-20.

Next time a newspaper reports that "investors decided" ask yourself do they mean traders and do they mean trading computers.

A word to the wise on compromise

In today's my way or the highway politics, more politicians (and political junkies) should take to heart the following: Compromise on public issues is the price of civilization, not an abrogration of principle.

This was written by Alan Greenspan, former Chairman of the Federal Reserve, and is quoted by Bethany McLean and Joe Nocera in "All the devils are here".  Alan Greenspan wrote it about being asked by President Ford to become Chairman of the Council of Economic Advisors.

Greenspan was also a member of Ayn  Rand's inner circle.