of this book is neither that of the neoliberal who is instinctively against meddling regulators nor that of the unreconstructed Stalinist who is suspicious
of private enterprise. If we are to finance better health and education for
all of our citizens, we need economic growth. Growth requires risk takers.
Too little risktaking starves the economy, feeding economic, social, and political malaise. Excessive risktaking allows a few players to flash brightly before
plunging us all into darkness. To achieve a Goldilocks1 amount of risktaking—
not too hot, not too cold, not too large, not too little—requires a fresh take
on financial regulation. This is not to be confused with the decision to have
more or less regulation—the binary choice presented by competing political
ideologies. What we need is a substantial reinvention.
Reinventing Financial Regulation – A Blueprint for Overcoming Systemic Risk