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December 2, 2014

Jonathan Tobin: Defending the Right to a Jewish State

Heather Hale: Compliment your kids without giving them big heads

Megan Shauri: 10 ways you are ruining your own happiness

Carolyn Bigda: 8 Best Dividend Stocks for 2015

Kiplinger's Personal Finance editors: 7 Things You Didn't Know About Paying Off Student Loans

Samantha Olson: The Crucial Mistake 55% Of Parents Are Making At Their Baby's Bedtime

Densie Well, Ph.D., R.D. Open your eyes to yellow vegetables

The Kosher Gourmet by Megan Gordon With its colorful cache of purples and oranges and reds, COLLARD GREEN SLAW is a marvelous mood booster --- not to mention just downright delish
April 18, 2014

Rabbi Yonason Goldson: Clarifying one of the greatest philosophical conundrums in theology

Caroline B. Glick: The disappearance of US will

Megan Wallgren: 10 things I've learned from my teenagers

Lizette Borreli: Green Tea Boosts Brain Power, May Help Treat Dementia

John Ericson: Trying hard to be 'positive' but never succeeding? Blame Your Brain

The Kosher Gourmet by Julie Rothman Almondy, flourless torta del re (Italian king's cake), has royal roots, is simple to make, . . . but devour it because it's simply delicious

April 14, 2014

Rabbi Dr Naftali Brawer: Passover frees us from the tyranny of time

Greg Crosby: Passing Over Religion

Eric Schulzke: First degree: How America really recovered from a murder epidemic

Georgia Lee: When love is not enough: Teaching your kids about the realities of adult relationships

Cameron Huddleston: Freebies for Your Lawn and Garden

Gordon Pape: How you can tell if your financial adviser is setting you up for potential ruin

Dana Dovey: Up to 500,000 people die each year from hepatitis C-related liver disease. New Treatment Has Over 90% Success Rate

Justin Caba: Eating Watermelon Can Help Control High Blood Pressure

The Kosher Gourmet by Joshua E. London and Lou Marmon Don't dare pass over these Pesach picks for Manischewitz!

April 11, 2014

Rabbi Hillel Goldberg: Silence is much more than golden

Caroline B. Glick: Forgetting freedom at Passover

Susan Swann: How to value a child for who he is, not just what he does

Cameron Huddleston: 7 Financial Tasks You Should Tackle Right Now

Sandra Block and Lisa Gerstner: How to Profit From Your Passion

Susan Scutti: A Simple Blood Test Might Soon Diagnose Cancer

Chris Weller: Have A Slow Metabolism? Let Science Speed It Up For You

The Kosher Gourmet by Diane Rossen Worthington Whitefish Terrine: A French take on gefilte fish

April 9, 2014

Jonathan Tobin: Why Did Kerry Lie About Israeli Blame?

Samuel G. Freedman: A resolution 70 years later for a father's unsettling legacy of ashes from Dachau

Jessica Ivins: A resolution 70 years later for a father's unsettling legacy of ashes from Dachau

Kim Giles: Asking for help is not weakness

Kathy Kristof and Barbara Hoch Marcus: 7 Great Growth Israeli Stocks

Matthew Mientka: How Beans, Peas, And Chickpeas Cleanse Bad Cholesterol and Lowers Risk of Heart Disease

Sabrina Bachai: 5 At-Home Treatments For Headaches

The Kosher Gourmet by Daniel Neman Have yourself a matzo ball: The secrets bubby never told you and recipes she could have never imagined

April 8, 2014

Lori Nawyn: At Your Wit's End and Back: Finding Peace

Susan B. Garland and Rachel L. Sheedy: Strategies Married Couples Can Use to Boost Benefits

David Muhlbaum: Smart Tax Deductions Non-Itemizers Can Claim

Jill Weisenberger, M.S., R.D.N., C.D.E : Before You Lose Your Mental Edge

Dana Dovey: Coffee Drinkers Rejoice! Your Cup Of Joe Can Prevent Death From Liver Disease

Chris Weller: Electric 'Thinking Cap' Puts Your Brain Power Into High Gear

The Kosher Gourmet by Marlene Parrish A gift of hazelnuts keeps giving --- for a variety of nutty recipes: Entree, side, soup, dessert

April 4, 2014

Rabbi David Gutterman: The Word for Nothing Means Everything

Charles Krauthammer: Kerry's folly, Chapter 3

Amy Peterson: A life of love: How to build lasting relationships with your children

John Ericson: Older Women: Save Your Heart, Prevent Stroke Don't Drink Diet

John Ericson: Why 50 million Americans will still have spring allergies after taking meds

Cameron Huddleston: Best and Worst Buys of April 2014

Stacy Rapacon: Great Mutual Funds for Young Investors

Sarah Boesveld: Teacher keeps promise to mail thousands of former students letters written by their past selves

The Kosher Gourmet by Sharon Thompson Anyone can make a salad, you say. But can they make a great salad? (SECRETS, TESTED TECHNIQUES + 4 RECIPES, INCLUDING DRESSINGS)

April 2, 2014

Paul Greenberg: Death and joy in the spring

Dan Barry: Should South Carolina Jews be forced to maintain this chimney built by Germans serving the Nazis?

Mayra Bitsko: Save me! An alien took over my child's personality

Frank Clayton: Get happy: 20 scientifically proven happiness activities

Susan Scutti: It's Genetic! Obesity and the 'Carb Breakdown' Gene

Lecia Bushak: Why Hand Sanitizer May Actually Harm Your Health

Stacy Rapacon: Great Funds You Can Own for $500 or Less

Cameron Huddleston: 7 Ways to Save on Home Decor

The Kosher Gourmet by Steve Petusevsky Exploring ingredients as edible-stuffed containers (TWO RECIPES + TIPS & TECHINQUES)

Jewish World Review January 9, 2009 / 13 Teves 5769

Why the regulators always lose

By Rich Lowry


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http://www.JewishWorldReview.com | With $7 trillion in wealth disappearing in the U.S. in the past year, it hasn't been a banner time for anyone involved in the financial markets. But it may be the Securities and Exchange Commission that has taken the biggest bath.


The storied investment banks that it oversaw have basically disappeared — out of business or transformed into bank holding companies. And on top of that comes the Bernard Madoff scandal, in which the Wall Street figure operated a $50 billion Ponzi scheme under the SEC's nose despite repeated warnings that he must be defrauding investors.


The 2005 letter from investment maven Harry Markopolos to the SEC arguing that Madoff had to be a scammer has become justly famous. Titled "The World's Largest Hedge Fund is a Fraud," Markopolos outlined no fewer than 29 red flags raised by Madoff's operation. According to The Wall Street Journal, the SEC and other regulators examined Madoff at least eight times in the course of 16 years and found nothing more than technical violations.


An egregious failing, of course. But Peter Van Doren of the free-market Cato Institute points out the difficulties inherent in the SEC's task. The average SEC examiner's inbox must be flooded with complaints and leads, many of which have no merit, in a chaotic environment characterized by trillions of dollars of trades a day. The SEC is in the position of the old British Foreign Service official who after a career spanning 1903-1950 recalled, "Year after year the worriers and fretters would come to me with awful predictions of the outbreak of war. I denied it each time. I was only wrong twice."


Except the SEC makes a practice of being wrong. It missed the Enron and WorldCom debacles. In response, it successfully petitioned for a massive heap of new financial regulations in the form of Sarbanes-Oxley, which didn't make a whit of difference as the SEC missed the impending implosion of the investment banks and one of the most notorious financial frauds in U.S. history.


Part of the problem is that the SEC has to try to outfox people paid very well, and with every incentive, to outfox it. As David Smick writes in "The World Is Curved": "A well-intentioned government bureaucrat is no match for the kind of creative and clever market wizards, and their lawyers, who begin searching for legal means around any regulatory constraint the instant the regulations are put in place. Today a senior Securities and Exchange Commission (SEC) officer earns between $143,000 and $216,000 per year. Even junior executive decision-makers at Goldman Sachs garner annual compensation packages in the millions of dollars."


Then there's the more fundamental problem that it's almost impossible for the SEC to know what the market — the collective wisdom of countless millions of people, acting on an array of information too vast to quantify — doesn't know. Markets aren't perfect. They are given to speculative manias, but they are easier to identify in retrospect than at the time. Yes, there are always Cassandras famous for their prescience after a bubble bursts, but forgotten are all the times the bears warned against robust and healthy economic growth.


If the market is wrong, it is also brutally self-correcting. Enron and Lehman Brothers were gone before SEC officials could think much about what new regulations they were going to advise Congress to pass, doomed to be found lacking in due course.


When it comes to Madoff, as one wag observed, he ran afoul of one of the oldest regulations on the books, "Thou Shalt Not Steal." What the market needs now is not regulatory overkill, but reforms to make sure that incentives are properly aligned — e.g., bond rating agencies shouldn't be paid by the firms issuing the bonds — and that the system is as transparent as possible.


Even the shrewdest rules won't avoid the next bubble and bust, after which the SEC or some other regulatory agency will again inevitably be found wanting.

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© 2009 King Features Syndicate

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