Part 9/15:
The Role of Regulation and Human Nature
The conversation delves into whether regulatory changes have sufficed. Sorcin is cautious; laws such as the Securities Act of 1933 and Glass-Steagall aimed to tame excess, but human desire for quick gains persist. He discusses how regulation often lags behind innovation, especially in areas like crypto and private equity, where outdated rules still shape modern markets.
A poignant insight is that speculation—though sometimes viewed negatively—is intrinsic to innovation. Without risk-taking and some degree of hype, progress stalls. The challenge is balancing this drive with safeguards to prevent systemic collapses.