Intrade goes to great lengths to transparently define the contracts in their markets for hosts of potential pitfalls: candidate deaths, calling outcomes, etc. The investors in this market are fully aware of what they are trading and the risks associate with that.
Today, Federal Reserve Chairman Ben Bernanke will be testifying before a House Financial Services Committee. Would it not be timely if he were asked about the role the Fed plays in facilitating the bank holding companies to hold sway in the oil market?
Just recently, Washington announced the creation of a "dream team" of financial regulators, called the Systemic Risk Council. Great idea, but here's a question: Why was the current chairwoman of the SEC, Mary Schapiro, not included?
While it is true that HFTs have a vested interest in keeping market abuse to a minimum, it is not yet clear that their liquidity has been healthy enough to withstand the pressure of incoming regulations.
If Congress is truly serious about banking reform, it needs more than just well-intentioned laws: it also needs the right people to enforce those laws, it needs to give those people the resources they require to do their job properly, and it needs to pay them decently.