Capital Market Consequences

Art Hutchinson quoting a subscriber-only WSJ article:

In 2000, nine of every 10 dollars raised by non-U.S. companies outside their domestic markets was through U.S. exchanges… By last year, only one in 10 such dollars was raised in New York.


As the WSJ notes, that’s a truly radical change. Some of it is no doubt driven by exchange rates, but only some. Another major factor has been increased regulatory oversight in the U.S., (e.g., Sarbanes-Oxley), providing a sobering lesson in the unintended consequences of well-meaning legislation in a fluid, free-market global economy.

I’d strike “well-meaning” from the above, but another beautiful example nonetheless.

People should have the same freedom to respond to stupid policymakers by deserting the policymakers’ jurisdiction.

One Response

  1. “Well meaning” in the Hayekian sense, as in “The Road to Serfdom”. Thanks for the TB, Mike.

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