{"id":6929,"date":"2013-03-10T05:57:30","date_gmt":"2013-03-10T09:57:30","guid":{"rendered":"http:\/\/goldstocksforex.com\/?p=6929"},"modified":"2013-03-10T05:57:30","modified_gmt":"2013-03-10T09:57:30","slug":"philip-maymin-why-financial-regulation-is-doomed-to-fail-library-of-economics-and-liberty","status":"publish","type":"post","link":"https:\/\/thepatientinvestor.com\/index.php\/2013\/03\/10\/philip-maymin-why-financial-regulation-is-doomed-to-fail-library-of-economics-and-liberty\/","title":{"rendered":"Philip Maymin, Why Financial Regulation is Doomed to Fail &#124; Library of Economics and Liberty"},"content":{"rendered":"<p>Philip Maymin highlights a problem with volatility:<\/p>\n<blockquote style=\"background-color:#ddddff;\"><p>&#8230;..securities with historically low volatility tended to have almost twice as much subsequent risk, while those with historically high volatility tended to have almost half as much subsequent risk. For both the riskiest and least risky securities, therefore, historical risk is a statistical illusion.<\/p><\/blockquote>\n<p>He further points out that regulation encourages banks to act in concert, increasing systemic risk, while deposit insurance reduces the level of self-imposed discipline among banks.<\/p>\n<p>Read more at <a href=\"http:\/\/www.econlib.org\/library\/Columns\/y2011\/Mayminfinancial.html#.UTuUNxaJDsA.twitter\">Philip Maymin, Why Financial Regulation is Doomed to Fail | Library of Economics and Liberty<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Philip Maymin highlights a problem with volatility: &#8230;..securities with historically low volatility tended to have almost twice as much subsequent risk, while those with historically high volatility tended to have almost half as much subsequent risk. For both the riskiest and least risky securities, therefore, historical risk is a statistical illusion. He further points out &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/thepatientinvestor.com\/index.php\/2013\/03\/10\/philip-maymin-why-financial-regulation-is-doomed-to-fail-library-of-economics-and-liberty\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Philip Maymin, Why Financial Regulation is Doomed to Fail &#124; Library of Economics and Liberty&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[31],"tags":[1001,3321,3617],"class_list":["post-6929","post","type-post","status-publish","format-standard","hentry","category-the-fed-banks-interest-rates","tag-deposit-insurance","tag-systemic-risk","tag-volatility"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Philip Maymin, Why Financial Regulation is Doomed to Fail &#124; Library of Economics and Liberty - the patient investor<\/title>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Philip Maymin, Why Financial Regulation is Doomed to Fail &#124; Library of Economics and Liberty - the patient investor\" \/>\n<meta property=\"og:description\" content=\"Philip Maymin highlights a problem with volatility: &#8230;..securities with historically low volatility tended to have almost twice as much subsequent risk, while those with historically high volatility tended to have almost half as much subsequent risk. For both the riskiest and least risky securities, therefore, historical risk is a statistical illusion. He further points out &hellip; Continue reading &quot;Philip Maymin, Why Financial Regulation is Doomed to Fail &#124; Library of Economics and Liberty&quot;\" \/>\n<meta property=\"og:url\" content=\"https:\/\/thepatientinvestor.com\/index.php\/2013\/03\/10\/philip-maymin-why-financial-regulation-is-doomed-to-fail-library-of-economics-and-liberty\/\" \/>\n<meta property=\"og:site_name\" content=\"the patient investor\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/profile.php?id=61572934660810\" \/>\n<meta property=\"article:author\" content=\"https:\/\/facebook.com\/people\/The-Patient-Investor\/61572934660810\/\" \/>\n<meta property=\"article:published_time\" content=\"2013-03-10T09:57:30+00:00\" \/>\n<meta name=\"author\" content=\"Colin Twiggs\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Colin Twiggs\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2013\\\/03\\\/10\\\/philip-maymin-why-financial-regulation-is-doomed-to-fail-library-of-economics-and-liberty\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2013\\\/03\\\/10\\\/philip-maymin-why-financial-regulation-is-doomed-to-fail-library-of-economics-and-liberty\\\/\"},\"author\":{\"name\":\"Colin Twiggs\",\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/#\\\/schema\\\/person\\\/d42b18d516a80149d739845749ac6454\"},\"headline\":\"Philip Maymin, Why Financial Regulation is Doomed to Fail &#124; Library of Economics and Liberty\",\"datePublished\":\"2013-03-10T09:57:30+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2013\\\/03\\\/10\\\/philip-maymin-why-financial-regulation-is-doomed-to-fail-library-of-economics-and-liberty\\\/\"},\"wordCount\":108,\"commentCount\":2,\"publisher\":{\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/#organization\"},\"keywords\":[\"deposit insurance\",\"systemic risk\",\"volatility\"],\"articleSection\":[\"Banks &amp; Interest Rates\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2013\\\/03\\\/10\\\/philip-maymin-why-financial-regulation-is-doomed-to-fail-library-of-economics-and-liberty\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2013\\\/03\\\/10\\\/philip-maymin-why-financial-regulation-is-doomed-to-fail-library-of-economics-and-liberty\\\/\",\"url\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2013\\\/03\\\/10\\\/philip-maymin-why-financial-regulation-is-doomed-to-fail-library-of-economics-and-liberty\\\/\",\"name\":\"Philip Maymin, Why Financial Regulation is Doomed to Fail &#124; Library of Economics and Liberty - the patient investor\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/#website\"},\"datePublished\":\"2013-03-10T09:57:30+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2013\\\/03\\\/10\\\/philip-maymin-why-financial-regulation-is-doomed-to-fail-library-of-economics-and-liberty\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2013\\\/03\\\/10\\\/philip-maymin-why-financial-regulation-is-doomed-to-fail-library-of-economics-and-liberty\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2013\\\/03\\\/10\\\/philip-maymin-why-financial-regulation-is-doomed-to-fail-library-of-economics-and-liberty\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/thepatientinvestor.com\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Philip Maymin, Why Financial Regulation is Doomed to Fail &#124; Library of Economics and Liberty\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/#website\",\"url\":\"https:\\\/\\\/thepatientinvestor.com\\\/\",\"name\":\"The Patient Investor\",\"description\":\"Smart. 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He co-founded Incredible Charts and writes the popular Trading Diary and Patient Investor newsletters. Using a top-down approach, Colin identifies key macro trends in the global economy before evaluating selected opportunities using a combination of fundamental and technical analysis. Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008\\\/2009 and 2020 bear markets well ahead of actual events. He founded PVT Capital (AFSL No. 546090) in May 2023, which offers investment strategy and advice to wholesale clients.\",\"sameAs\":[\"https:\\\/\\\/facebook.com\\\/people\\\/The-Patient-Investor\\\/61572934660810\\\/\",\"https:\\\/\\\/www.instagram.com\\\/colin_thepatientinvestor\",\"https:\\\/\\\/au.linkedin.com\\\/in\\\/colintwiggs\"],\"url\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/author\\\/investor\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Philip Maymin, Why Financial Regulation is Doomed to Fail &#124; Library of Economics and Liberty - the patient investor","robots":{"index":"noindex","follow":"follow"},"og_locale":"en_US","og_type":"article","og_title":"Philip Maymin, Why Financial Regulation is Doomed to Fail &#124; Library of Economics and Liberty - the patient investor","og_description":"Philip Maymin highlights a problem with volatility: &#8230;..securities with historically low volatility tended to have almost twice as much subsequent risk, while those with historically high volatility tended to have almost half as much subsequent risk. 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Macroprudential regulation\u00a0are measures aimed to mitigate the risk of the financial system as a whole, or systemic risk, as opposed to the risk to individual participants. 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The MOVE measures short-term interest rate volatility in bond markets. Levels above 150 warn that the Fed is losing control of interest rates and will be forced to intervene. The bank run continues. Large depositors are moving out of bank deposits and\u2026","rel":"","context":"In &quot;Banks &amp; Interest Rates&quot;","block_context":{"text":"Banks &amp; Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"MOVE Index","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2023\/2023-03-17-move.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2023\/2023-03-17-move.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2023\/2023-03-17-move.png?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":10835,"url":"https:\/\/thepatientinvestor.com\/index.php\/2014\/09\/07\/financial-reform-call-to-arms-ft-com\/","url_meta":{"origin":6929,"position":3},"title":"Financial reform: Call to arms | FT.com","author":"ColinTwiggs","date":"September 7, 2014","format":false,"excerpt":"Martin Wolf on how much capital banks should be required to hold: The new regulatory regime is an astonishingly complex response to the failures of this model. But \u201ckeep it simple, stupid\u201d is as good a rule in regulation as it is in life. The sensible solution seems clear: force\u2026","rel":"","context":"In &quot;Banks &amp; Interest Rates&quot;","block_context":{"text":"Banks &amp; Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":41110,"url":"https:\/\/thepatientinvestor.com\/index.php\/2023\/03\/08\/volatility-and-complex-systems\/","url_meta":{"origin":6929,"position":4},"title":"Volatility and Complex Systems","author":"Colin Twiggs","date":"March 8, 2023","format":false,"excerpt":"We live and invest in a complex world that is prone to volatility. Politicians, governments and central banks all attempt to suppress volatility in order to make the economy more manageable (and re-election more predictable). Suppression of volatility may give the appearance of stability but leads to an accumulation of\u2026","rel":"","context":"In &quot;Banks &amp; Interest Rates&quot;","block_context":{"text":"Banks &amp; Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"10-Year Treasury Yield minus 10-Year Inflation Expectations","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2023\/2023-03-07-10y-inflation.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2023\/2023-03-07-10y-inflation.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2023\/2023-03-07-10y-inflation.png?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":15286,"url":"https:\/\/thepatientinvestor.com\/index.php\/2017\/05\/15\/at-last-some-sensible-commentary-on-bank-levy-macrobusiness\/","url_meta":{"origin":6929,"position":5},"title":"At last, some sensible commentary on bank levy | MacroBusiness","author":"ColinTwiggs","date":"May 15, 2017","format":false,"excerpt":"From Leith van Onselen: ......The bank levy helps internalise some of the cost of the extraordinary public support that the big banks receive from taxpayers via the Budget\u2019s implicit guarantee (which provides a two-notch improvement in the banks\u2019 credit ratings), the RBA\u2019s Committed Liquidity Facility, the implementation of deposit insurance,\u2026","rel":"","context":"In &quot;Stock Markets&quot;","block_context":{"text":"Stock Markets","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/stock-markets\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/6929","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/comments?post=6929"}],"version-history":[{"count":0,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/6929\/revisions"}],"wp:attachment":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/media?parent=6929"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/categories?post=6929"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/tags?post=6929"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}