Consider the prospects for the Financial Stability Oversight Council (FSOC) set up by the Dodd-Frank Act. Can a big, cumbersome committee made up of representatives of numerous regulatory bureaucracies, each driven to defend its jurisdictional turf, actually produce new insights into the unknowable financial future? In particular, can such a committee have insights into the future “systemic risks” of complex, interacting systems, in which the members of the committee are themselves creators of such risks?
It seems unlikely.
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