A moment for regulation

An economist who I very much respect - Robert Schiller of Yale - has an op-ed in today's journal about regulation.  Most debates about regulation are framed from either the liberal standpoint of "Capitalist pigs and their multinational conglomerates!!!!!!!"  or the conservative standpoint of "Capitalism is fucking awesome.  Leave it alone."  Schiller argues that this crisis is not a failure of capitalism, but a failure of regulation keeping up to an adapting game.  Every year the NFL implements new rules for a sport which is continuously evolving (Roy Williams, Marion Barber, Helmet-to-Helmet, below the knee of quarterbacks).

Schiller does a good job of using the always popular sports analogy to break down this topic:

"Such a world of animal spirits justifies the economic intervention of government. Its role is not to harness animal spirits but really to set them free, to allow them to be maximally creative. A brilliant player wants a referee, for only when the game has appropriate rules can he really show his talents."