September 10, 2013
Dear Elizabeth Murphy:
The stable $1 net asset value is a regulatory fiction that creates moral hazard and mis-allocation of resources. Regulators should keep their hands off market-generated prices.
Regulators seem to think that by simply decreeing something to be so --it is! But it isn't --it is what it is. Let the markets work.
Maybe investment firms and advisers will be more careful having to deal realities of the market instead of regulatory fictions.