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Opinion

Bringing trust back to the free-market system

Bringing trust back to the free-market system
CHRISTOPHER W. YOUNG
COMMENTARY

Most would argue that the free-market system, the system of choice for most nations, has been the igniter of technological innovation, economic growth and the tool that has pulled people from poverty throughout the world.

However, the efficiency and viability of this system rests on three pillars: investment transparency, liquidity, and regulation. Such pillars can be compromised, however, when an elite few develop undue influence on the market, creating a risk for market failure and a climate of public anger and uncertainty. This invariably leads to a discussion as to the viability of the free-market, with alternative economic models of egalitarian theory proposed as anodyne to our pains.

Over the past twelve years or so, the free-market has witnessed three unique, yet interconnected, market failures created by lack of competition and exploitation of ill-conceived regulatory frameworks. The first illustration of just such a recent failure came to us just as we were entering the 21st century. Research analysts at many of the large investment banks were investigated by the SEC because of their curious habit of awarding high ratings to companies with a penchant for bankruptcy, cf. Enron and WorldCom. The findings from the investigation showed that many of these research analysts were paid not according to the quality and accuracy of their research, but rather upon their success in securing investment banking business for their employers. The best way to secure IB work, these analysts found, was to trade it for favorable ratings.

 

Enhance transparency by changing N.J. PAC requirements

Enhance transparency by changing N.J. PAC requirements
BY JEFF BRINDLE
COMMENTARY

It has been said that while reforms are often necessary and to the benefit of the public they sometimes have unintended consequences.

The Election Law Enforcement Commission's ...

Citizens of Newark pay too much for police misconduct

Citizens of Newark pay too much for police misconduct
BY DEBORAH JACOBS
COMMENTARY

Faced with a $70 million budget gap, Mayor Cory Booker has proposed cost-cutting measures ranging from layoffs to shutting down city pools to wiping out the city's toilet pa...

Reforming N.J. gaming industry will challenge Christie

Reforming N.J. gaming industry will challenge Christie
BY CARL GOLDEN
NEWJERSEYNEWSROOM.COM
COMMENTARY

As political debates go, the one shaping up over the Christie Administration's comprehensive initiative to reform and reinvigorate the state's gaming and e...

Future of Atlantic City and gaming is too important to rush

Future of Atlantic City and gaming is too important to rush
DEAR EDITOR:

Amid much speculation that an agreement is near on a plan for Atlantic City's future, I am making it very clear that much work remains to properly examine all facets of New Jersey's sports...

At this rate, it could be President Hillary Clinton in 2012

At this rate, it could be President Hillary Clinton in 2012
BY ALAN J. STEINBERG
NEWJERSEYNEWSROOM.COM
COMMENTARY

President Barack Obama is a man whose political fortunes have imploded. The national political rock star of 2008 has become the Democratic political...

Not contributing to N.J. teacher and state worker pensions is the real fraud

Not contributing to N.J. teacher and state worker pensions is the real fraud
BY MURRAY SABRIN
COMMENTARY

The State of New Jersey was accused by the Securities and Exchange Commission of committing fraud when it issued bonds between 2001 and 2007. According to the SEC complaint...

Increasing N.J. sales tax to offset property taxes is not an original idea

Increasing N.J. sales tax to offset property taxes is not an original idea
BY MICHAEL MORRIS
NEWJERSEYNEWSROOM.COM
COMMENTARY

It seems as though Middletown's appointed Republican mayor Gerry Scharfenberger has a rather novel, but highly unoriginal idea to help unburden tax paye...

Turning Meadowlands into a racino is common sense

Turning Meadowlands into a racino is common sense
BY RALPH R. CAPUTO AND CONNIE WAGNER
COMMENTARY

The news is coming quickly these days when it comes to gaming, and unfortunately none of it is all that good for New Jersey.

First, Gov. Chris Christie's a...

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