Re: Trading on material non-public info
<<The bottom line for me is that government interference in markets always comes at a very steep direct cost >>
I'm with Bully on this issue. Unregulated markets are not the way to go. Zero regulation is the jungle. To co-opt a related critique, financial life will be "nasty, brutish and short" in such an environment.
For all its ills we have one of the most respected financial systems ever devised. You only need watch money flow into US GOVERNMENT bonds in a large scale crisis of confidences to see evidence of this. To disregard the role of government in the formation of our system is, IMO, an error.
All of this said, I agree in that over-regulation is not only possible but an ongoing threat. At any rate, you're right, it won't be settled here (or anywhere) but it's a good ongoing policy discussion to have.