Much of these discussions turn on the degree to which regulation should be used. These public policy decision are case-specific. I’m not advocating total deregulation, but this experiment has worked well in the airline industry and in telecomunications (at least from a consumer perspective). Most every other sector is deregulated.
Globally, deregulation is the new paradigm, save Venzeuela. We can copy Hugo if you would like.
As to due dilligence, you are right this is less a protective tool if someone wants to circumvent securities laws with misrepresentation, fraud, and negligent misrepresentation. (Before Sarbox, however, these laws were already on the books at the state and federal level (12 b 6, etc.) This was not the main effect of Sarbox; it was the burdensome reporting requirements.)
Due dilligence was only a partial recommendation, however. The primary protection is proper asset allocation. All of these problems would be avoided if common people stopped trying to make tremendous gains on specific companies. Why create billions in new goverment, hamper these industries, drive jobs overseas, etc. when you could warn investors to stop being so stupid and placing half their retirement in Enron?
As to the other comments, I don’t listen to Limbaugh. Agree with much of what he says, but he is boring.
Concerning Social Security, of course we should have private accounts similar to a 403 (b) or 401 (k). Should they be able to place all their social security investments in Nextbigcompany.com? Of course, not! This is a typical liberal straw man. Because of the Left’s inablity to innovate our government programs, our schools are worthless in inner cities and we are facing trillions in debt load with SS and Medicare. Don’t want private accounts? No problem. There might not be any SS at all or it will be making payments that are worthless because of huge inflation and taxation of benefits.
Private accounts have worked tremendously well for some other countries and it is no big deal there. Congress also has the same ability. Why not everyone else?
