Comment: But that cuts both ways.

But that cuts both ways. Peter Schiff was fined 15K or something by FINRA, which is not a public, but is a private regulatory company.

The situation you outline, where regulation happens from free regulatory agencies, is hard to achieve. What eneds up happening, is the regulatory companies rely on the industry they are regulating to generate revenue. Therefore, they end up regulating very lenienty. For example, all those horrible investments rated AAA+ by all the private regulatory agencies.

For example, cigarrette companies point to private research firms that have shown that cigarrette smoke is not bad for you. Originally, that was thought to be valid research, until the government came in and found out it wasn't the case through unbiased research. Then, people can see the cigarrette company's research is bought and paid for.

In regards to court, they already favor the wealthy. You can argue the law in so many ways, if you can afford top-notch lawyers they will win the argument for your side. Independent courts are the same way; how do they get their revenue? That will put a huge bias; we see that in our current courts how justices are influenced by legal bribes that they get.

Obviously, in the current system, government regulators get bought by those they regulate, and nothing good happens. But at least we can work around it; we've seen that in the past; in the 50s and 60s where you had lower corruption. Relying on private regulation is dangerous unless you provide an independent source of funding, which ends up being the government anyways...or, you can have the law mandate that regulatory firms can't accept money from these companies, which is government interference anyways.