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The problem with this type of ruling is that it prevents new and innovative financial services from springing up which (if allowed to exist) might supercede the present financial system. It's not as if the present system is perfect.

Having said that, there are sensible reasons for regulating companies in the financial industry, for example preventing unsophisticated customers from losing lots of money.



... might supercede the present financial system

And that's precisely why they will be always shut down. Government hates competition. Gov also shut down Liberty Dollar which was a commodity-backed currency.

http://en.wikipedia.org/wiki/Liberty_Dollar

http://www.flickr.com/photos/71392301@N00/1404773871/


from http://en.wikipedia.org/wiki/Liberty_Dollar ->

"Community currencies may present problems for users because there is little to stop the issuer from producing more currency."

ahh...brutal irony in a wikipedia article ;)


That's a good argument for repealing the Federal Reserve Act.

Did anyone else listen to NPR yesterday morning and hear the open admission that they were printing to fund their new failout package?




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