Musings on the JP Morgan Chase $2B Loss

Reading the morning news online, I came across an op-ed piece in the Washington Post with an interesting link that had the following commentthe following comment on financial markets: ".... financial markets are inherently unstable. They will neither self-correct nor self-regulate. Their instability poses a threat to markets and economies and people across the globe. Therefore, they need to be regulated. That's not to say that anyone knows the best way to do this yet in order to balance the necessity of oversight with the dynamics of the markets. We don't know where to set the speed limits. It must be an iterative process." This is a sentiment that needs to be examined and understood by thoughtful citizens. Especially important is communicating the need for oversight of fianancial institutions during this high flying, high stakes period of gambling by our biggest banks. I know I am showing my age and I understand that finding effective regulators with no specail interest is almost impossible, but I would like to see a return to smaller, more local banks with perhaps relationshhips with each other to benefit consumers. For example ATM machines that have recipricol arrangements for no fee arrangements. Of course , this would mean less profits for banks, but then again why do they need to pay such high salaries and bonuses? Extraordinary compensation under capitalism is for innovators and individuals that take risks with their own assets, not employees of institutions using public funds or insured by the public.