Wall Street Needs More Transparency
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Harold Meyerson's Oct. 14 op-ed, "Who'll Rein In Wall St.?," on attempts to strengthen rules for derivatives trading, argued that "tougher regulations are not only good for the economy, they're good for the Democratic Party."
For those devoted to the concept of the "free market," a fundamental argument needs to be added.
The theory of the free market, as taught in any Economics 101 course, includes underlying assumptions too frequently forgotten. Basic among them is the notion of "perfect information" for buyers and sellers.
The transparency and information provided by the proposed exchanges would thus enhance the free market.
Those who oppose government action to improve access to information are the true enemies of free-market economics.
President Obama has frequently asserted that he is in favor of free markets. If so, it is to be hoped that he can bring along his fellow Democrats for such essential requirements as the exchanges that House Financial Services Committee Chairman Barney Frank (D-Mass.) and Mr. Meyerson advocate.
JOEL FREEDMAN
Silver Spring
