Finance requires the state to regulate markets and police its own excesses

Evidence

And, fundamentally (libertarian fantasies aside), finance utterly depends on governments to regulate financial behaviour: that is, finance cannot operate reliably (at least not on any scale) except where a state provides securities commissions, legal mechanisms to make sure counterparties pay their debts, and forms of government intervention that mitigate utter monopolies, insider trading, cartelization and financial bubbles (Henwood 1998, 90–99). So finance relies fundamentally on state-mediated forms of resistance to its own power. — Max Haiven, Cultures of Financialization, 504

Categorization

• XREF: Reverses the libertarian ‘friction-free’ model of finance; connects to Milgrom’s account of private adjudication institutions and to the ‘self-regulating market’ myth that Polanyi and deWaard both dismantle. — connects to: States make markets as much as markets determine states — Mark Blyth, Austerity: The History of a Dangerous…, 266; The free market requires constant state interventionism to be established and maintained — Philip Mirowski & Dieter Plehwe (eds.), The Road from Mont Pèlerin: The Making…, 2137; Unchecked self-regulating markets are destructive and require countervailing laws. — Shoshana Zuboff, The Age of Surveillance Capitalism, 124 (+6 more)

Broader Connections

• The free market requires constant state interventionism to be established and maintained #corroborates (0.88) — Philip Mirowski & Dieter Plehwe (eds.), The Road from Mont Pèlerin, 2137
• Unchecked self-regulating markets are destructive and require countervailing laws. #corroborates (0.85) — Shoshana Zuboff, The Age of Surveillance Capitalism, 124
• Rule of law in economics restricts the state to purely formal legislation #expands (0.80) — Michel Foucault, The Birth of Biopolitics, 923
• A financial model can be written into regulation to enact its own assumptions #qualifies (0.75) — Donald MacKenzie, An Engine, Not a Camera, 742
• Exported capital requires strong state power over new domains #expands (0.75)
• Capital export required state power to insure against risks shareholders refused to bear #corroborates (0.74) — Hannah Arendt, The Origins of Totalitarianism, 368