Madoff Made Off Thanks to the SEC

 "Evil requires the sanction of the victim."
  Ayn Rand

I have not posted anything here in quite some time. The reason is not a lack of things to write about, but just the opposite; the world is going nuts and who could possibly comment on all the things worthy of notice? It's overwhelming.

I just saw something on the news that moved me to reach for the keyboard though. In a story about Bernie Madoff - Mr. Ponzi writ large - we got another of those "poor victim" snippets - a couple who had invested their life savings with the culprit and lost it all. Whatever considerations I might personally have about this couple and the possibility that their own greed led to their own disaster, their story demonstrates something that is clear to me - something that, as usual, puts me squarely on the non-popular, heretical side of things.

There is no doubt that 99% of the population, when hearing of fraud schemes like this and others, and seeing victims like these and others, see it all as a call for greater regulation of the stock market. I, on the other hand, see it as more evidence that regulation will always fail. Why? These victims are not just victims of Bad Bernie; they are victims of two other contributing factors:

1. Their own laziness in not using due diligence before parting with their hard earned cash, and,
2. Government fraud.

Government fraud? Yes. The government (by force) assumes the role of protector - defending us, presumably from our own stupidity, we being such poor hapless, mindless waifs in the eyes of the power-elite. It takes a monopoly position in governance of trade in all things including stocks by way of laws creating regulatory agencies - in this case, the SEC. So, as with everything else, the public assumes it is safe because Big Brother government has everything under control. And, as with everything else government touches, it fails. Do government police forces actually apprehend and bring to justice all criminals? Do government infrastructure agencies deliver great roads and ports etc.? Do government wars on abstract nouns ever end in victory? Does government get anything right?

These are simple questions with, to me, obvious answers:

If there were no government regulation of the trading of stocks and other securities, would this couple be in the position they are now?
Of course not!

If there were no government regulation of the trading of stocks and other securities, would this couple have perhaps used their brains a bit before handing their wampum over to a stranger?
Of course they would have!

Caveat emptor works.
E Pluribus Unum victimizes.