“<a href=http://www.guardian.co.uk/commentisfree/2008/sep/16/economics.wallstreet>Financial markets hinge on trust, and that trust has eroded.</a>”
The common notion that one should drive on the right side of the road makes it so.
Is the idea that some particular institution is trustworthy make it so?
I think not.
Infinite Ponzi schemes are an oxymoron—they run out of fuel.
I think that stochastic auditing could supplant trust of judgement, but not trust in honesty.
<p>Government regulation may be the only way we know to address the 2008 problem but I suspect there is a distributed solution involving transparent rating of assets.
It would require honest players, but not wise players.