Advice for Marco Rubio

I saw your opinion/commentary article published in the Wall Street Journal 6/5/2019. It properly brought to light that investors should not trust accounting statements from Chinese businesses. Your solution to this problem, calling for more government regulation is foolish.

A free market will less regulations, where “let the buyer beware” is more likely to have long term benefits, then establishing regulations attempting to cure yesterday and today’s problems.

Federal regulations are not without costs, Costs that most often accrue to businesses who have no evil intent. These costs then get passed on to all investors, even those who have no interest in Chinese investments. 

The fact that the SEC could not discover a multi-million ponzi scheme by Bernie Madoff that went on for years demonstrates just one example where regulations accomplished little, and provided the moral hazard that investors assumed the government was protecting them.  Your proposal will only increase the demand by the SEC for more federal budget, and more bureaucracy.

We have laws in place to punish wrong doers. Advocating more regulations to try to prevent fraud is an example of shutting the barn door after the horse has bolted.