Our state is a service, a night watchman / Social media feed / Country

There is nothing to blame on the depositors themselves: the same urges to get as much as possible in the absence of training and knowledge are found among the majority of citizens of any country. And it is up to the state to collapse the pyramid at the beginning of its construction.

All of this looks like the Ponzi pyramid, which was in America (in 1919). Street vendor Charles Ponzi found that so-called postage stamps that were purchased for mailing in the US and Europe had a large price difference due to postage. He offered to invest money for people who wanted to receive cheaper postage stamps and then for people who wanted to make money from them. When the pyramid collapsed, investigators found that Ponzi raised more money than the value of all the stamps in circulation. Then the United States began to tighten regulation of financial services markets. Now in the United States, the SEC is more feared than the tax one.

– In Ukraine, there is an interesting regulatory duality. Sector legislation was developed based on who received which grants and which leaders went to which countries on paid business travel. Basically, our leaders from the National Securities Commission traveled to the United States. Our securities legislation has actually been removed from the American one. We have it very powerful and the powers of the National Securities Market Commission are broad, almost with elements of investigative actions. We also have regulations against fraud. Therefore, there is a set of tools to combat scammers. So when they say there are no rules, that’s manipulation. There are enough to plant speculators. The National Commission limited itself to issuing a warning. Therefore, it lowered its functional capacity to the level of a private loan agency.

But the state cannot behave like a private credit agency. Private organizations should warn. And the state not only warns, but stops illegal operations. Our whole neoliberal history, when the state is a service, a night watchman, and led to such a situation. The state does not want to take responsibility. He’s not even above the fight, but far from the fight.