As governments across the world bail out companies and institutions, there is a consensus on the need for stronger regulations and new governance to lead the global financial market.
However, this could lead to over-regulations, which would mean the end of free markets. Having stayed on the one end (absolutely free-markets), the pendulum is now moving to the other extreme end (heavy government control), and this, experts believe could stifle growth and innovation in the financial services industry.
Most taxpayers, who currently view entities like AIG the biggest monsters of modern times, see governments as their saviours. True, the excesses of the markets lead us to recession but a full control of the state can be detrimental.
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