Referees wanted (The Financial Athlete #40)

Everyone disputes a call from a referee, but no one disputes the need for referees in sports. Watch a referee call an obvious foul on a basketball player and the player’s likely response is denial: “What?”

It is well known that players foul more often when referees don’t blow the whistle. It’s no different for traders in the stock market. A facade of regulation cannot maintain Rule of Law. Without Rule of Law investors will lose confidence in the credibility in the financial system.

Instill fear of punishment and public humiliation for wrongdoing, and more people will respect the laws.

“There’s nothing better than a good, blind referee.” – Bobby Heenan


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