Finally, the debate over the 15% interest-rate cap shows just how unclear we are about the role of regulation. On one hand, people like Greenspan are willing to let free-market principles decide what kind of marketplace the consumer will enter, and if those principles create unfair and deceptive practices, so be it. On the other hand, some politicians think it's a good idea to restrict individual choice by stepping in and telling consumers how to manage their finances -- for example, restricting credit cards to people under 21 or capping interest rates at 15%.
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The answer lies somewhere in between. The role of the regulator should be to create an open and fair marketplace that fosters innovation and competition. At the end of the day, the person best-suited to make financial decisions for you is you. The regulator's job is to make sure those decisions are as easy as possible for you to make.
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