Reinventing Regulation with No Guiding Theories

The transcript discusses the challenges faced in financial regulation, highlighting the need for new regulatory systems due to the inadequacy of previous theories and assumptions. It critiques the reliance on free market principles, such as the Greenspan doctrine, and emphasizes the importance of understanding real-world economics and human behavior over simplistic mathematical models.

In what ways does the speaker propose a return to real-world economics?

What are the implications of the speaker's views on the assumptions made in economic theories?